Page 54 - City of Bedford FY20 Approved Budget

Enabling Legislation. Authorizes the government to assess, levy, charge, or
otherwise mandate payment of resources and includes a legally enforceable
requirement that those resources be used only for the specific purpose.

General Fund. A fund that accounts for all financial resources not accounted for
and reported in another fund.

Special Revenue Fund. A fund whose revenue source(s) is restricted or
committed to a specific purpose other than capital projects or debt service.
Usually has one or more revenue resources that is not a transfer from another
fund. The Tourism Fund is a special revenue fund that is primarily financed by
hotel occupancy taxes. A portion of this revenue has been obligated on an annual
basis for debt service payments. In addition, revenue from this fund is used to
finance the ongoing operations of several tourism-related facilities and special
events.

Capital Projects Fund. A fund that accounts for all financial resources that are
restricted, committed, or assigned to expenditures for capital outlays.

Debt Service Fund. A fund that accounts for all financial resources that are
restricted, committed, or assigned to expenditures for principal and interest of
debt obligations.

Enterprise Fund. A fund that accounts for operations that are financed and
operated in a manner similar to private business enterprises, where the intent of
the governing body is that the cost of providing goods or services to general
public on a continuing basis be financed or recovered primarily through users
charges.

Permanent Fund. Funds to account for resources that are restricted to the extent
that only earnings, and not principal, may be used for purposes that support the
City of Bedford’s programs that are for the benefit of the city and/or its citizens.

Working Capital. The measurement of the operating liquidity of an enterprise
fund by subtracting the current liabilities from the current assets.

PRIORITY OF FUND BALANCE CATEGORIES:
In lieu of a policy for unrestricted fund balance, funds that are constrained in the
remaining categories will be used in the order of: 1) committed, 2) assigned, 3)
unassigned. Therefore, when multiple categories of fund balance are available for
expenditure (i.e. a construction project funded partly by 1) a grant, 2) funds set aside by
the City Council, & 3) unassigned funds), the City will start with the most restricted
category and spend those funds first before moving down to the next category with
available funds. Normally, this would result in the use of restricted, then committed, then
assigned, and lastly unassigned fund balance.

32