Prepare the fund balance of the balance sheet using the following information:

The City of Oxbow General Fund has the following net resources at year-end:

$199,000 unexpended proceeds of a state grant required by law to be used for health education.

$7,000 of prepaid insurance.

$600,000 rainy day fund approved by the city council for use under specified circumstances.

$200,000 budget stabilization fund to be used in the event of revenue shortfall.

$275,000 provided for contractual obligations for capital projects.

$26,000 unexpended proceeds of a tax required by law to be used for emergency 911 services.

$1,559,000 total fund balance.

Required: Prepare the fund balance section of the balance sheet.