Page 239 - Benbrook FY2021

BUDGETARY BASIS – GOVERNMENTAL FUNDS

The information presented in the City's Budget Document is based on the same basis as the City's general ledger accounting practices. The
accounting policies of the City of Benbrook conform to generally accepted accounting principles as applicable to governments. The City of
Benbrook uses a modified accrual basis of accounting.

The 2020-21 Budget consists of the Operating Funds (Combined General Fund and Debt Service Fund). The Operating Funds Budget is
approved annually by the City Council through the adoption of an ordinance. City Council also sets the property tax rate for the Operating
Funds on an annual basis through the adoption of an ordinance; separate property tax rates are adopted for the General Fund and for the
Debt Service Fund.

GOVERNMENTAL FUNDS

Governmental funds are used to account for all or most of the City’s general activities, including the acquisition or construction of general fixed
assets and other improvements (Capital Projects Funds), and the servicing of general long-term debt (Debt Service Fund). The General Fund is
used to account for all activities of the general government not accounted for in some other fund.

The various funds are grouped - in the City’s financial statements, financial reporting system, and budget documents and reports – into generic
fund types and broad fund categories as follows:

The General Fund is the main operating fund of the City. This fund is used to account for all financial resources not accounted for in other funds.
All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in the
General Fund. General operating expenditures, fixed charges, and capital improvement costs that are not paid through other funds are paid
from the General Fund.

The Debt Service Fund is used to account for the accumulation of financial resources for the payment of principal, interest, and other related
costs on long-term debt paid primarily from taxes levied by the City. The fund balance of the Debt Service Fund is reserved to signify the
amounts that are restricted exclusively for debt service expenditures.

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