Page 40 - Microsoft Word - Budget FY 19

CITY OF FOREST HILL

repair needs. City staff will analyze, and when necessary, include operating
budget impact statements in the CIP.

Utility Rates

Utility rates will be reviewed annually to adjust operating revenues to meet
operating costs and changes in contractual services.
Budget Administration

City departments will regularly review programs and services to adjust service
levels and operating costs.

All departments will be responsible for exploring the available grant opportunities
and seek those matching City needs.

Basis of Presentation

City accounts are organized on the basis of fund and account groups, each of
which is considered a separate accounting entity.

Governmental Funds Types

The General Fund is used to account for financial resources used for general
operations. This is a budgeted fund and any fund balances are considered
resources available for current operations. All revenues and expenditures not
required to be accounted for in other funds area are accounted for in this fund.
The General Fund appropriations are adopted as part of the annual budget
process. The General Fund is accounted and budgeted on the modified accrual
basis.

Special Revenue Funds are used to account for resources restricted to, or
designated for, specific purposes by a grantor. Federal and state financial
assistance generally is accounted for in a Special Revenue Fund. Normally,
unused balances are returned to the grantor at the close of specified project
period. Special Revenue Funds appropriations are adopted as part of the annual
budget process.

The Debt Service Fund is used to account for tax revenues and for the payment
of principal, interest, and related costs on long-term debts for which a tax has
been dedicated. Any unused sinking fund balances are used to lower outstanding
bonds. The Debt Service Fund appropriations are adopted as part of the annual
budget process. Debt Service Funds are accounted for and budgeted on the
modified accrual basis.

Capital Projects Funds are used to account for capital outlay projects financed
from general debt issued by the City. Capital Project Funds are not part of the
annual budget process. Capital Project Fund appropriations require specific

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