Page 450 - City of Bedford FY20 Approved Budget

Budgetary Basis: The City's accounting records for general governmental operations are maintained
on a modified accrual basis, with the revenues recognized when they become both available and
measurable and expenditures recognized when the services or goods are received and the liabilities
are incurred. Accounting records for the City's proprietary funds are maintained on an accrual basis.

Budgetary Control: The control of management of the organization in accordance with an approved
budget for the purposes of keeping expenditures within the limitations of available appropriations
and revenues.

Budget Document: The compilation of the spending plans for the various funds, along with
supporting schedules, tables, and charts which, in total, comprises the annual revenue and
expenditures plan.

Capital Outlay: An expenditure which results in the acquisition of, or addition to, fixed assets, and
meets these criteria: has an anticipated useful life of more than one year; can be permanently
identified as an individual unit of property; belongs to one of the following categories: Land,
Buildings, Equipment and Vehicles; constitutes a tangible, permanent addition to the value of City
assets; cost generally exceeds at least $1,000; does not constitute repair or maintenance; and, is not
readily susceptible to loss.

Capital Project Funds: The capital project funds are used to account for the acquisition or
construction of capital facilities being financed from general obligations or certificate of obligation
bond proceeds, grants, or transfers from other funds.

Certificates of Obligation (C.O.): Tax supported bonds that are similar to general obligation bonds
and can be issued after meeting strict publication requirements and with final approval by the City
Council.

City Charter: The document of a home rule City which establishes the City's government structure
and provides for the distribution of duties and powers among the various branches of government.

City Council: The Mayor and six Council members collectively acting as the legislative and
policymaking body of the City.

Current Taxes: Taxes levied and due within one year.

Debt Service: The City's obligations pay the principal and interest of all bonds and other debt
instruments according to predetermined payment schedule.

Department: A major administrative organizational unit of the City that indicates overall
management responsibility for one or more divisions.

Depreciation: (1) Expiration in service life of capital assets attributable to wear and tear,
deterioration, action of the physical elements, inadequacy or obsolescence. (2) That portion of the
cost of a capital asset that is charged as an expense during a particular period.

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