Accumulated surplus (sometimes called net worth or fund balance) represents the total value of what a government owns minus what it owes—essentially its overall financial position built up over many years. This includes all assets like buildings, infrastructure, investments, and cash, minus all debts and obligations. A healthy accumulated surplus means a government has been managing its finances responsibly over time and has resources available for unexpected challenges. However, much of a municipality's accumulated surplus is often 'tied up' in infrastructure like roads and buildings that can't easily be converted to cash, so a large accumulated surplus doesn't necessarily mean lots of available spending money.