Page 443 - Keller FY20 Approved Budget
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GLOSSARY OF TERMS
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FULL-TIME EQUIVALENT (FTE) POSITION.
EFFECTIVE TAX RATE. Defined by State law. A position for an employee working a 40-hour
In general, the tax rate that will raise the same work week for 52 weeks a year, i.e., 2,080
amount of property tax revenue as the previous annual hours (2,912 annual hours for
year, based on properties taxed in both years. firefighters).
ENCUMBRANCE. An obligation, usually in the FUND. A fiscal and accounting entity
form of a purchase order, contract, or salary established to record receipt and disbursement
commitment, related to uncompleted contracts of income from sources set aside to support
for goods or services. Used in budgeting, specific activities or to attain certain objectives.
encumbrances are not classified as expend- Each fund is treated as a distinct fiscal entity
itures or liabilities, but are shown as a reser- where assets equal liabilities plus fund balances.
vation of fund balance. Upon payment,
encumbrances are recorded as expenditure and FUND BALANCE. Unless stated otherwise,
liquidated, thereby releasing the reservation of the excess of a fund's current assets over its
fund balance. Outstanding or unliquidated current liabilities; sometimes called working
encumbrances at year-end are re-appropriated capital in enterprise funds. Negative fund bal-
into the budget of the subsequent year. ances are referred to as a deficit.
ENTERPRISE FUND. A fund established to −G−
account for operations that are financed and
operated in a manner similar to private business GENERAL FUND. The fund used to account
enterprises, where the intent of the governing for financial resources except those funds
body is that the costs of providing goods or required to be accounted for in another fund; the
services to the general public on a continuing general fund is tax supported and includes the
basis be financed or recovered primarily through operations of most City services, i.e., police, fire,
user charges. streets, parks and recreation, and
administration.
ESTIMATED BUDGET. The City's estimated
financial plan, using mid-year estimates, GENERAL OBLIGATION DEBT. Money owed
containing both the estimated revenues to be on interest and principal to holders of the City's
received during the year and the proposed general obligation bonds. The debt is supported
expenditures to be incurred to achieve stated by revenues provided from real property that is
objectives. The City uses the current year esti- assessed through the taxation power of the City.
mate during the budget process in order to
determine the estimated beginning fund GOAL. A broad, general statement of each
balances for the next year. (Sometimes called department's or division’s desired social or
Revised Budget.) organizational outcomes.
EXPENDITURE. The outflow of funds paid or to −I−
be paid for assets obtained or goods and
services obtained regardless of when the IMPACT FEE. A fee imposed by the City on
expense is actually paid. An expenditure new development. Impact fees are collected for
decreases fund balance. roadway, water and sewer improvements.
Impact fees may only be used for capital
−F− improvements and/or expansion to the systems
for which the impact fee originally was collected.
FISCAL YEAR. The time period designated by
the City signifying the beginning and ending INFRASTRUCTURE. That portion of a City's
period for the recording of financial transactions. assets located at or below ground level,
The City's fiscal year is October 1 through including streets, water, and sewer systems.
September 30.
INTERFUND (INTRA GOVERNMENTAL)
FRANCHISE FEES (TAXES). A fee (tax) paid TRANSFERS. Transfers made from one City
by a public utility for the use of public property in fund to another City fund for purposes such as
providing their services to the citizens of Keller. reimbursement of expenditures, general and
The fee is typically calculated as a percentage of administrative services, payments-in-lieu of
the utility's gross receipts. taxes, or debt service.
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