P.2-12
Fund balances are classified according to degree of restrictiveness.
The following is from the governmental funds balance sheet section of the Town of Libertyville's Comprehensive Annual Financial Report.
	General Fund	Special Revenue Fund	Capital Projects Fund	Debt Service Fund		Total
Fund Balances
Nonspendable Inventory	125,000	111,000				236,000
Restricted for:
Parks and recreation	95,000					95,000
Road repair		46,000				46,000
Debt service				189,000		189,000
Highways Committed to:			560,000			560,000
Economic stabilization	212,000					212,000
Education	54,000					54,000
City Hall renovation			110,000			110,000
Assigned to:
Library acquisitions	46,000					46,000
Parks and recreation	24,000					24,000
Debt service				50,000		50,000
Other purposes	67,000					67,000
Unassigned	611,000					611,000
Total fund balances	1,234,000	157,000	670,000	239,000		2,300,000
Questions:
1. What is the most likely reason that there are no unassigned balances in any of the funds other than the
general fund?
2. Of the balance in the debt service fund, a portion is classified as "restricted," and a portion is classified
as "assigned." What parties or entities likely "restricted" and "assigned" the resources, respectively?
3. Of the balance in the capital projects fund, a portion is classified as "restricted," and a portion is
classified as "committed." What parties or entities likely "restricted" and "committed" the resources, respectively?
4. Why is inventory classified as "nonspendable?"
5. If Libertyville were to establish a Permanent Fund, how would the town classify most of its fund
balance?