What does current fund balance refer to?

The concept of current fund balance specifically pertains to the available financial resources that a municipality has at a particular point in time. This figure includes cash on hand, accounts receivable, and any other liquid assets that can be readily used to meet current obligations. It reflects the municipality's immediate financial position and plays a crucial role in budgeting and financial planning.

Understanding current fund balance is essential for municipal finance management, as it informs decision-making regarding expenditures, investment opportunities, and the overall fiscal health of the municipality. Accurately knowing the current fund balance enables municipal officials to make informed decisions and ensure that the municipality can meet its short-term liabilities and obligations effectively.

The other choices provided do not accurately define current fund balance. Future revenues and projected income relate to anticipated inflows over time but do not represent the present financial status. Total liabilities reflect what the municipality owes rather than its financial resources.