The maintenance of a fund balance is essential to the preservation of the financial integrity of the District. It can be used to mitigate current and future risks, such as unanticipated expenditures and/or revenue shortfalls. It is also important to consider fund balance management in long range financial planning, which projects revenues and expenditures for several years into the future, using broad assumptions based on past results and anticipated conditions. A long range financial plan illustrates the District’s ability to pay for and provide services, given programmatic and economic assumptions. These projections help decision makers assess expenditure commitments, revenue trends, financial risks, and the affordability of new services and capital investments.