Page 37 - City of Bedford FY21 Budget

because generally they are not measurable until received in cash.

Deferred revenues arise when potential revenue does not meet both the "measurable" and
"available" criteria for recognition in the current period. Deferred revenues also arise when the
City receives resources before it has a legal claim to them, as when grant monies are received prior
to incurring qualifying expenditures. In subsequent periods, when both revenue recognition
criteria are met, or when the City has a legal claim to the resources, the liability for deferred
revenue is removed from the combined balance sheet and revenue is recognized.

The accrual basis of accounting is utilized by proprietary type funds, which include the
Water/Sewer Fund and the Stormwater Fund. Under this method, revenues are recognized when
earned and expenses are recognized at the time the liabilities are incurred. The City's policy is to
apply all Financial Accounting Standards Board standards to its proprietary funds unless they
conflict with Governmental Accounting Standards Board (GASB) guidance.

BUDGET PROCESS

The City’s fiscal year runs from October 1 through September 30. (According to the City Charter,
the City Manager must present the Council with the proposed budget no later than the fifteenth
day of August (Article IV, §4.02).) The proposed budget must also be filed with the City Secretary
at that time. Included in this section is the budget calendar followed for this year’s budget cycle.

The following diagram outlines the budget cycle in the City of Bedford.

Budget
Preparation

Implementation of Budget Office Review
the Budget

Adoption of the Budget & City Manager Review
Tax Rate

Public Hearings on Budget & Proposed Budget Submitted to
Tax Rate Council

Budget Work Session

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