Page 34 - City of Bedford FY20 Approved Budget

Grant Funds are not budgeted as the revenue and expenditures are considered outside everyday
operations and are not an on-going, consistent revenue source. Agency Funds are excluded
because assets are held by the City in a trustee capacity for other entities.

Governmental Proprietary Special Revenue

Funds Funds Funds

General Fund Water & Sewer Fund Tourism Fund
Debt Service Fund Court Technology Fund
Stormwater Fund
Economic Development Fund Court Security Fund

Computer Replacement Fund Utility Repair & Maintenance
Fund Park Donations Fund
Park Maintenance Fund Water/Sewer Vehicle
Aquatic Maintenance Fund Replacement Fund Beautification Fund
Public Safety Training Fund
Library Maintenance Fund
Street Improvement Economic
Facility Maintenance Fund Development Corporation
Public, Education, Goverment
Computer Replacement Fund (PEG) Fund
Commercial Vehicle
Equipment Replacement Fund Enforcement Fund
Police Vehicle Replacement
Fund SWAT NETCAST Fund

According to state law, municipal governments must maintain a balanced budget. For this purpose,
the adopted budget must have proposed expenditures that are equal to or less than the proposed
revenues. In compliance with the City’s financial policies, a deficit of revenues to expenditures
can be supplemented with the fund balance.

BASIS OF ACCOUNTING

All governmental fund types, special revenue funds and agency fund types use the modified
accrual basis of accounting. These funds include the General Fund, Tourism Fund, Police Training
Fund, Drug Enforcement Fund and the Court Security Fund. Under the modified accrual basis of
accounting, revenues are recognized when susceptible to accrual, i.e., when they become both
measurable and available. "Measurable" means that the amount of the transaction can be
determined and "available" means collectible within the current period or soon enough thereafter
to be used to pay liabilities of the current period. The City considers property taxes as available if
they are collected within 60 days after year-end.

Expenditures are recognized when the related fund liability is incurred. Principal and interest on
general long-term debt are recorded as fund liabilities when due or when amounts have been
accumulated in the Debt Service Fund for payments to be made early in the following year.

Revenues susceptible to accrual are property taxes, sales taxes, franchise taxes, special
assessments, interest and charges for services. Fines and permits are not susceptible to accrual

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