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12 components of fund balance that will replace the current existing components; Nonspendable, Restricted, Committed, Assigned and Unassigned. The Nonspendable fund balance is 24.1% ($10.1 million) which represents funds that are legally required to be maintained intact such as advances to other funds. The Restricted fund balance is 42.4% ($17.9 million) and reflects constraints placed on the use of resources by external factors such as regulation of other governments, grantors, or laws, and enabling legislature. This amount includes Capital projects, Debt Service payments and encumbrances. The assigned balance includes amounts that are constrained by the government’s intent to be used for specific purposes. The Committed fund balance includes amount that can onl y be used for a specific purpose pursuant to the constraints imposed by formal action of the City Council and to remain binding unless removed in the same manner by the city council. There is no committed fund balance that meets the criteria as describe in GASB 54. The Assigned fund balance includes amounts that are constrained by the city’s intent to be used for specific purposes including deficit fund balance. The assigned fund balance for 2011-12 is $3.5 million or 8.5% which includes the Community Impact payment and the Redevelopment Plaza Loan repayment from the General Fund. The Unassigned fund balance includes amounts that have not been restricted, committed, or assigned to a specific purpose within the general fund which should be the only fund that can report this category. For fiscal year 2011-12, the balance in this category is $10.6 million or 25%. The General Fund is the chief operating fund of the City. At the end of 2011-12, total fund balance was $24.5 million of which $10.7 million was unassigned and $3.5 million was assigned. The primary components of the unassigned amount are $5 million for major emergencies for un foreseen events, $5.2 million for economic uncertainty to provide funds for potential financial volatility relates to the uncertain economic climate and unknown effects of the ongoing State budget and takeaways from city government, and $540,000 for compensated absences. As a measure of the General Fund’s liquidity, it may be useful to compare both Assigned and Unassigned fund balance to the total fund expenditures, representing 14.8% of the General Fund operating expenditure. The General Fund total fund balance decreased by $1,210,504 during the 2011-12 fiscal year, compared to a decrease of $3.3 million in the prior fiscal year 2010-11. Revenues, issuance of debt, and transfers of $95 million were 30% ($22.2 million) higher than prior fiscal year. Although total revenues were higher than the prior fiscal year primarily due to the increase in sales tax by $3.7 million, there were decreases in investment earnings and property tax as mentioned earlier due to th e State take away of tax increment money due to the dissolution of the Redevelopment Agency. Expenditures and transfers out of $96 million increased by 30% ($22.7 million) as well.