Page 332 - NRH FY20 Approved Capital Budget

GLOSSARY

similar to private business enterprises--where the intent of the governing body is that the costs of providing
goods or services to the general public on a continuing basis be financed or recovered primarily through user
charges.

EQUIPMENT REPLACEMENT FUND: A Fund whereby monies provide solely for the replacement,
maintenance and upkeep of City owned equipment. Refer to Resolution No. 97-39, approved September 8,
1997.

EXPENDITURE: This term refers to the outflow of funds paid or to be paid for an asset obtained or goods and
services obtained regardless of when the expense is actually paid. This term applies to all funds.

EXPENSES: A decrease in net total assets. Expenses represent the total cost of operations during a period
regardless of the timing of related expenditures.

FISCAL YEAR: The time period designated by the City signifying the beginning and ending period for recording
financial transactions. The City of North Richland Hills has specified October 1 to September 30 as its fiscal
year.

FIXED ASSETS: Assets of a long term character which are intended to continue to be held or used, such as
land, buildings, machinery and equipment.

FRANCHISE FEE: The fee paid by public service businesses for use of City streets, alleys and property in
providing their services to the citizens of a community. Services requiring franchises include electricity,
telephone, natural gas and cable television.

FUND: An accounting entity with a separate set of self-balancing accounts which comprise its assets,
liabilities, fund balance, revenues and expenditures.

FUND ACCOUNTING: A governmental accounting system that is organized and operated on a fund basis.

FUND BALANCE: The assets of a fund less liabilities, as determined at the end of each fiscal year. Any
reservations of fund balance are deducted to result in an "unreserved fund balance".

FUND TYPE: In governmental accounting, all funds are classified into eight fund types: General, Special
Revenue, Debt Services, Capital Projects, Special Assessment, Enterprise, Internal Service, and Trust and
Agency.

GENERAL FUND: The largest fund within the City, the General Fund accounts for most of the financial
resources of the government. General Fund revenues include property taxes, licenses and permits, local
taxes, service charges, and other types of revenue. This fund usually includes most of the basic operating
services, such as fire and police protection, park and recreation, libraries, public works, and general
administration.

GENERAL OBLIGATION BONDS: Bonds that finance public projects such as streets, municipal facilities, and
park improvements. The repayment of these bonds is made from property taxes, and these bonds are backed
by the full faith and credit of the issuing government.

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP): Uniform minimum standard of and guidelines
to financial accounting and reporting. They govern the form and content of the basic financial statements of an
entity. They encompass the conventions, rules, and procedures necessary to define accepted accounting
practice at a particular time. They include not only broad guidelines of general application, but also detailed
practices and procedures. They provide a standard by which to measure financial presentations.

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