Page 27 - Forest Hill FY20 Annual Budget

CITY OF FOREST HILL

the grantor at the close of specified project period. Special Revenue Funds
appropriations are adopted as part of the annual budget process.

The Debt Service Fund is used to account for tax revenues and for the payment of
principal, interest, and related costs on long-term debts for which a tax has been
dedicated. Any unused sinking fund balances are used to lower outstanding bonds. The
Debt Service Fund appropriations are adopted as part of the annual budget process.
Debt Service Funds are accounted for and budgeted on the modified accrual basis.

Capital Projects Funds are used to account for capital outlay projects financed from
general debt issued by the City. Capital Project Funds are not part of the annual budget
process. Capital Project Fund appropriations require specific action by the City Council,
are adopted on an individual project basis, and may be appropriated on a multi-year
basis. General Capital Project funds are accounted for and budgeted on the modified
accrual basis.

Enterprise / Proprietary Fund Types
The Water and Sewer Fund account for revenues and expenses on a full accrual
basis. Water, sewer, and solid waste services are delivered to the citizens of the City.
The total operating, capital and debt costs are recovered from the utility rates charged
for the delivery of these services. The Water and Sewer Operating Fund appropriations
are adopted as part of the annual budget process. The Water and Sewer Operating
Fund is budgeted on the modified accrual (working capital) basis.

Reconciliation between the net changes in working capital to the change in net assets
GAAP basis provided in the utility fund summary schedule in the Enterprise Funds
section of this document. Water and Sewer Fund capital projects are not part of the
annual budget process. Utility Capital Project Fund appropriations require specific
action by the City Council, are adopted on an individual project basis, and may be
appropriated on a multi-year basis.

Annual Publications

The Annual Program of Services is submitted to the Government Finance Officers
Association (GFOA) Distinguished Budget Award Program annually.

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