Page 165 - Microsoft Word - Budget FY 19
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Commitment: The pledge of appropriated funds to purchase an item or service. Funds are committed
               when a requisition is issued through the Finance Division of the City.

               Current Taxes: Taxes that are levied and due within one year.

               Debt Service:  The  City's obligation  to pay the principal  and  interest of all bonds  and other  debt
               instruments according to a pre-determined payment schedule.

               Delinquent Taxes:  Taxes that  remain unpaid on and  after the date  due,  after which a penalty for
               nonpayment is attached.

               Department: A major administrative division of the City that indicates over all management responsibility
               for an operation or group of related operations within a functional area.

               Depreciation: The process of estimating and recording the lost usefulness or expired useful life from a
               fixed asset that cannot or will not be restored by repair and will be replaced. The cost of the fixed asset's
               lost usefulness is the depreciation or the cost to reserve in order to replace the item at the end of its
               useful life.

               Designations: Designations are the desired uses of fund balance which are discretionary in nature in
               that the requested items were not budgeted in the prior year. To be a valid designation  request, the
               department  must  not have spent  all of their  prior  year budget  (i.e. have  savings), and must provide
               justification for the request approved by the City Manager.

               Disbursement: Payment for goods and services in cash or check.


               Effectiveness: A measure of how adequately the intended purpose is accomplished and the intended
               or expected results are produced.

               Encumbrance: The commitment of appropriated funds to purchase an item or service. Committed funds
               become encumbered when a purchasing requisition becomes an actual purchase order.

               Enterprise Fund: A governmental accounting fund used to account for operations that are financed and
               operated in a manner similar to private business enterprises, where the intent of the governing body is to
               recover the cost of providing goods through user fees. Rate schedules for these services are established
               to insure that revenues are adequate to meet all necessary expenditures. Enterprise funds within the City
               of Forest Hill are established for services such as water and sewer.

               Estimated Revenue: The amount of projected revenue to be collected during the fiscal year. It may also
               be defined as the proposed financing sources estimated to finance the proposed projected expenditure.

               Expenditure: Decreases in the use of net financial resources other than through inter-fund transfer.


               Expenses: Outflow or other depletion of assets or incurrence of liabilities during a specific period of time
               which results from the delivery or production of goods, rendering of services, or carrying out of other
               activities that constitute the entity's ongoing major central operations.




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