Page 267 - Honorable Mayor and Members of the City Council

BUDGETARY BASIS – GOVERNMENTAL FUNDS

The information presented in the City's Budget Document is based on the same basis as the City's general ledger
accounting practices. The accounting policies of the City of Benbrook conform to generally accepted accounting
principles as applicable to governments. The City of Benbrook uses a modified accrual basis of accounting.

The 2018-19 Budget consists of the Operating Funds (Combined General Fund and Debt Service Fund). The Operating
Funds Budget is approved annually by the City Council through the adoption of an ordinance. City Council also sets
the property tax rate for the Operating Funds on an annual basis through the adoption of an ordinance; separate
property tax rates are adopted for the General Fund and for the Debt Service Fund.

GOVERNMENTAL FUNDS

Governmental funds are used to account for all or most of the City’s general activities, including the acquisition or
construction of general fixed assets and other improvements (Capital Projects Funds), and the servicing of general
long-term debt (Debt Service Fund). The General Fund is used to account for all activities of the general government
not accounted for in some other fund.

The various funds are grouped - in the City’s financial statements, financial reporting system, and budget documents
and reports – into generic fund types and broad fund categories as follows:

The General Fund is the main operating fund of the City. This fund is used to account for all financial resources not
accounted for in other funds. All general tax revenues and other receipts that are not restricted by law or contractual
agreement to some other fund are accounted for in the General Fund. General operating expenditures, fixed charges,
and capital improvement costs that are not paid through other funds are paid from the General Fund.

The Debt Service Fund is used to account for the accumulation of financial resources for the payment of principal,
interest, and other related costs on long-term debt paid primarily from taxes levied by the City. The fund balance of
the Debt Service Fund is reserved to signify the amounts that are restricted exclusively for debt service expenditures.

CITY OF BENBROOK 2018-19 ANNUAL BUDGET
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