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GLOSSARY

GO’s – Acronym for General Obligation Bonds. See General Obligation Bonds.

GOALS: Broad, general statements of each activity or department’s desired outcomes.

GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA): Association of public financial professionals
founded in 1906 as the Municipal Finance Officers Association. The GFOA has played a major role in the
development and promotion of GAAP for state and local government since its inception and has sponsored the
Certificate of Achievement in Financial Reporting Program since 1946. It also publishes “Governmental
Accounting, Auditing, and Financial Reporting” commonly known as the “blue book.”

GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB): Ultimate authoritative accounting and
financial reporting standard-setting body for state and local governments. The GASB was established in June
1984 to replace the NCGA.

GOVERNMENTAL FUNDS: Funds generally used to account for tax-supported activities. There are five
different types of governmental funds: the general fund, special revenue funds, debt service funds, capital
projects funds, and permanent funds.

GRANT: A contribution by a government or other organization to support a particular function. Typically, these
contributions are made to local governments from the state and federal governments.

HALF CENT SALES TAX: A half percent sales tax can be imposed by qualifying cities to fund specific
development activities under the Development Corporation Act of 1979 with voter approval.

HOMESTEAD EXEMPTION: A deduction from the total taxable assessed value of owner occupied property.
The exemption in North Richland Hills is 15% with an additional $35,000 for disabled and senior citizens.

INCOME: A term used in proprietary fund type accounting to represent revenues, or the excess of revenues
over expenses.

INFRASTRUCTURE: The underlying permanent foundation or basic framework.

INTEREST EARNINGS: The earnings from available funds invested during the year in U.S. Treasury Bonds,
Government agencies, and Certificates of Deposits.

INTERFUND TRANSFER: Amounts transferred from one fund to another.

INTERNAL SERVICE FUND: Fund used to account for the financing of goods or services provided by one
department to another department on a cost reimbursement basis.
INVESTMENTS: Securities and real estate held for the production of revenues in the form of interest,
dividends, rentals, or lease payments. The term does not include fixed assets used in governmental
operations.

LEVY: To impose taxes, special assessments, or service charges for the support of City services.

LIABILITIES: Debts or other legal obligations arising out of transactions in the past which must be liquidated,
renewed, or refunded at some future date.

LINE ITEM BUDGET: A budget that lists each expenditure item separate along with the dollar amount
budgeted for each specific account number.

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