Page 326 - Benbrook FY20 Approved Budget

CITY OF BENBROOK 2019-20 ANNUAL BUDGET

ENCUMBRANCE The commitment of appropriated funds to purchase an item or service. To encumber funds means to set
aside or commit funds for a future expenditure.

ESTIMATED REVENUE The amount of projected revenues to be collected during the fiscal year. The projected financing sources
are estimated to finance the proposed projected expenditures.

EXPENDITURE A decrease in the net financial resources of the City due to the acquisition of goods or services.

FISCAL YEAR A twelve-month period to which the annual operating budget applies. The City has established October
1 through September 30 as its fiscal year.

FIXED ASSETS Assets of a long-term character which are intended to continue to be held or used. Examples of fixed
assets include items such as land, buildings, machinery, furniture, and other equipment.

FULL FAITH AND CREDIT A pledge of the general taxing power of a government to repay debt obligations (the term is typically
used in reference to bonds).

FUNCTION A group of related activities aimed at accomplishing a major service.

FUND An accounting entity with a self-balancing set of accounts that record financial transactions for specific
activities or governmental functions. The major funds used by the City include: General Fund, Debt
Service Fund, Capital Projects Fund, Tax Increment Financing (TIF) Fund, Stormwater Utility Fund, Core
Value Fund, Police Narcotics Fund, Hotel/Motel Occupancy Tax Fund, and Technology Fund.

FUND BALANCE The excess of assets over liabilities. Fund Balance is also known as surplus funds or reserves.

GENERAL FUND The fund used to account for all financial resources except those required to be accounted for in one of
the City's other special purpose funds.

GENERAL LEDGER A file that contains a listing of various accounts necessary to reflect the financial position and results of
operation of the government.

GENERAL OBLIGATION Bonds that finance a variety of public improvement projects which pledge the "Full

BONDS Faith and Credit" of the City for their repayment.

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