Page 221 - Azle City Budget 2019

FISCAL YEAR: The time period designated by the City signifying the beginning and ending
period for recording financial transactions. The City has specified October 1 to September 30
as its fiscal year.

FRANCHISE FEE: A fee paid by public service businesses for use of City streets, alleys and
property in providing their services to the citizens of a community. Services requiring franchises
include electricity, telephone, natural gas and cable television.

FUND: An accounting entity with a separate set of self-balancing accounts which comprise its
assets, liabilities, fund balance, revenues and expenditures.

FUND BALANCE: The assets of a fund less liabilities, as determined at the end of each fiscal
year. Any reservations of fund balance are deducted to result in an “unreserved fund balance.”

GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB): The body that sets
accounting standards specifically for governmental entities at the state and local levels.

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP): Uniform minimum standards
used by state and local governments for financial recording and reporting; established by the
accounting profession through the Governmental Accounting Standards Board (GASB).

GENERAL FUND: The largest fund within the City, the General Fund accounts for most of the
financial resources of the government. General Fund revenues include property taxes, licenses
and permits, local taxes, service charges, and other types of revenue. This fund usually
includes most of the basic operating services, such as fire and police protection, park and
recreation, public works, and general administration.

GENERAL OBLIGATION BONDS: Bonds that finance public projects such as streets,
municipal facilities, and park improvements. The repayment of these bonds is made from
property taxes, and these bonds are backed by the full faith and credit of the issuing
government.

HMNW: Harris Methodist Northwest Hospital.

I & S RATE: Interest & Sinking Rate. The portion of the City’s tax rated dedicated to the
repayment of the City’s general obligation debt.

MODIFIED ACCRUAL BASIS OF ACCOUNTING: A form of accrual accounting in which (1)
expenditures are recognized when the goods or services are received and (2) revenues, such
as taxes, are recognized when measurable and available to pay expenditures in the current
accounting period.

MUNICIPAL DEVELOPMENT DISTRICT: a district enacted by the approval of the voters in
May 2013. The district collects a half cent sales tax revenue on the Tarrant County side of the
City of Azle. The district use resources to fund economic development activities such as
infrastructure projects, recreational or community facilities, or projects that create or expand
business development within the City. For budgetary and accounting purposes the district is
treated as a Special Revenue (Purpose) Fund.

NON-DEPARTMENTAL: Includes debt service, operating transfers between funds, and salary
merit pool.

City of Azle 2018-2019 Budget 209