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CITY OF RAMSEY <br />Notes to Financial Statements (continued) <br />December 31, 2002 <br />NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br />4. After the budget resolution has been adopted, the Council may, by a resolution approved by a 4/5 <br />vote of its members, reduce the sums appropriated for any purpose by the budget resolution, or <br />authorize the transfer of sums from unencumbered balances of appropriations in the budget <br />resolution to other purposes. However, the Council may not increase the amounts fixed in the <br />resolution beyond the estimated funds available except to the extent that actual receipts exceed <br />the estimated funds available. <br />5. Formal budgetary integration is employed as a management control device during the year for the <br />following funds: <br />General Fund <br />Special Revenue Funds <br />Economic Development Authority Fund <br />Enterprise Funds <br />Water Utility <br />Sewer Utility <br />Street Light Utility <br />Recycling Utility <br />Storm Water Utility <br />For remaining Special Revenue Funds and Capital Project Funds, effective budgetary control <br />is achieved through the use of project controls. Budgetary control for Debt Service Funds is <br />achieved through bond indenture provisions. <br />6. Formal budgets are adopted on a basis consistent with accounting principles generally accepted in <br />the United States of America (GAAP) for the General Fund, Economic Development Authority <br />Special Revenue Fund, and all Enterprise Funds. <br />7. As required by City Charter, the Council sets the legal level of budgetary control. This legal level <br />of budgetary control has been set at the fund level, however control is maintained at the <br />department level, for all budgeted funds. This provides management the ability to alter the <br />budget line items in each department. <br />Budgeted expenditure appropriations lapse at year -end. Encumbrances outstanding expire at year -end <br />and are not reported in the financial statements. <br />Budgeted expenditure amounts shown are as originally adopted or amended by the City Council: <br />Original Amended <br />Budget Amendments Budget <br />General Fund $ 6,432,677 $ (872,709) $ 5,559,968 <br />Special Revenue Fund <br />Economic Development <br />Authority Fund $ 85,213 $ 5,436 $ 90,559 <br />-17- <br />