Page 92 - Forest Hill FY20 Annual Budget

CITY OF FOREST HILL

Delinquent Taxes: Taxes that remain unpaid on and after the date due, after which a penalty for
nonpayment is attached.

Department: A major administrative division of the City that indicates over all management responsibility
for an operation or group of related operations within a functional area.

Depreciation: The process of estimating and recording the lost usefulness or expired useful life from a
fixed asset that cannot or will not be restored by repair and will be replaced. The cost of the fixed asset's
lost usefulness is the depreciation or the cost to reserve in order to replace the item at the end of its useful
life.

Designations: Designations are the desired uses of fund balance which are discretionary in nature in that
the requested items were not budgeted in the prior year. To be a valid designation request, the department
must not have spent all of their prior year budget (i.e. have savings), and must provide justification for the
request approved by the City Manager.

Disbursement: Payment for goods and services in cash or check.

Effectiveness: A measure of how adequately the intended purpose is accomplished and the intended or
expected results are produced.

Encumbrance: The commitment of appropriated funds to purchase an item or service. Committed funds
become encumbered when a purchasing requisition becomes an actual purchase order.

Enterprise Fund: A governmental accounting fund used to account for operations that are financed and
operated in a manner similar to private business enterprises, where the intent of the governing body is to
recover the cost of providing goods through user fees. Rate schedules for these services are established
to insure that revenues are adequate to meet all necessary expenditures. Enterprise funds within the City
of Forest Hill are established for services such as water and sewer.

Estimated Revenue: The amount of projected revenue to be collected during the fiscal year. It may also
be defined as the proposed financing sources estimated to finance the proposed projected expenditure.

Expenditure: Decreases in the use of net financial resources other than through inter-fund transfer.

Expenses: Outflow or other depletion of assets or incurrence of liabilities during a specific period of time
which results from the delivery or production of goods, rendering of services, or carrying out of other
activities that constitute the entity's ongoing major central operations.

Fiscal Year: The twelve-month period to which the annual operating budget applies and at the end of which
a government determines its financial position and the results of its operations. The City of Forest Hill’s
fiscal year is October 1 through September 30.

Fixed Assets: Assets of long-term character that are intended to continue to be held or used, such as land,
buildings, machinery, furniture, and other equipment.

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