Page 103 - Forest Hill FY21 Annual Budget

Fore�Hill

I Glossary (Continued)

Fiscal Year: The twelve-month period to which the annual operating budget applies and at the end of
which a government detennines its financial position and the results of its operations. The City of Forest
Hill's fiscal year is October I through September 30.

Fixed Assets: Assets of long-tenn character that are intended to continue to be held or used, such as land,
buildings, machinery, furniture, and other equipment.

Full Faith and Credit: A pledge of the general taxing power of a government to repay debt obi igations
(typically used in reference to bonds).

Function: A group of related programs crossing organizational ( depai1mental) boundaries and aimed at
accomplishing a broad goal or major service.

Fund: A fiscal and accounting entity with a self-balancing set of accounts that records all financial
transactions for specific activities of government functions. Seven major fund types and two account groups
are commonly used: general fund, special revenue funds, debt service funds, capital project funds,
enterprise funds, trust and agency funds, internal service funds, general fixed asset account group, and
general long-term debt account group.

Fund Balance: The difference between a fund's assets and its liabilities. Portions of the fund balance may
be reserved for various purposes, such as non-spendable, restricted, committed, assigned, and unassigned.

General Fund: The largest fund within the City that accounts for all financial resources of the government
except for those required to be accounted for in another fund. General Fund revenues include property
taxes, licenses and pennits, 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, finance, public health,
parks and community services, public works, and general administration.

General Ledger: A file that contains a listing of the various accounts necessary to reflect the financial
position and results of governmental operations.

General Obligation Bonds: Bonds that finance a variety of public projects such as streets, buildings, and
improvements. The repayment of these bonds is usually made from the debt service po11ion of the City's
prope11y tax, and these bonds are backed by the full faith and credit of the issuing government.

Goal: The result or achievement towards which an effo11 is directed and intended to accomplish.

Grant: A contribution by a government or other organization to support a particular function. Grants may
be classified as either categorical or block depending upon the amount of discretion allowed to the grantee.

Inter-fund Transfers: Amounts transfe1Ted from one fund to another.

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