Page 185 - Haltom City FY19 Annual Budget

Internal Service Fund: A fund used to account for the financing of goods and services
provided by one City department or cost center to other department, on a cost-
reimbursement basis.

Interfund Transfers: Flows of assets (such as cash or goods) between funds and
blended component units of the primary government without equivalent flows of assets in
return and without a requirement for repayment.

Interest and Sinking (I&S): That portion of the property tax rate and subsequent
property tax revenue appropriated to the retirement of principal and interest on bonded
debt.

Legal Debt Margin: The excess of the amount of debt legally authorized over the amount
of debt outstanding.

Liabilities: Debt or other legal obligations arising out of transactions in the past, which
must be liquidated, renewed, or refunded, at some future date.

Maintenance and Operation (M&O): That portion of the property tax rate and
subsequent property tax revenue appropriated to the financing of general government
operations within the General Fund.

Modified Accrual Basis of Accounting: Basis of accounting according to which (a)
revenues are recognized in the accounting period in which they become available and
measurable and (b) expenditures are recognized in the accounting period in which the
fund liability is incurred, if measurable, except for unmatured interest on general long-
term debt and certain similar accrued obligations, which should be recognized when due.

Long Term Debt: Debt with a maturity of more than one year after the date of issuance.

Operating Budget: The portion of the budget that pertains to daily operations that
provide basic governmental services. The operating budget contains appropriations for
such expenditures as personnel, supplies, utilities, materials, travel, and fuel.

Operating Fund: The City classifies General and Enterprise Funds as Operating Funds.

Payment in Lieu of Taxes: A payment that a property owner not subject to taxation
makes to a government to compensate it for services that the property owner receives
that normally are financed through property taxes.

Performance Measures: Specific quantitative and qualitative measures of work
performed as and objective of the department.

Property Tax: Property taxes are levied on both real and personal property according to
the property’s valuation and the tax rate.

Proprietary Funds: Funds that focus on the determination of operating income, changes
in net assets, financial position, and cash flows. There are two different types of
proprietary funds: enterprise funds and internal service funds.

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