Page 30 - Forest Hill FY22 Annual Budget

Fore�Hill

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Budget Administration

City departments will regularly review programs and services to adjust service levels and
operating costs.

All departments will be responsible for exploring the available grant opportunities and seek those
matching City needs.
Basis of Presentation

City accounts are organized on the basis of fund and account groups, each of which is considered
a separate accounting entity.

Governmental Funds Types

The General Fund is used to account for financial resources used for general operations. This is
a budgeted fund and any fund balances are considered resources available for current operations.
All revenues and expenditures are required to be accounted for in other funds area are accounted
for in this fund. The General Fund appropriations are adopted as part of the annual budget
process. The General Fund is accounted and budgeted on the modified accrual basis.

Special Revenue Funds are used to account for resources restricted to, or designated for,
specific purposes by a grantor. Federal and state financial assistance generally is accounted for in
a Special Revenue Fund. Normally, unused balances are returned to the grantor at the close of
specified project period. Special Revenue Funds appropriations are adopted as part of the annual
budget process.

The Debt Service Fund is used to account for tax revenues and for the payment of principal,
interest, and related costs on long-term debts for which a tax has been dedicated. Any unused
sinking fund balances are used to lower outstanding bonds. The Debt Service Fund
appropriations are adopted as part of the annual budget process. Debt Service Funds are
accounted for and budgeted on the modified accrual basis.

Capital Project Funds are used to account for capital outlay projects financed from general debt
issued by the City. Capital Project Funds are not part of the annual budget process. Capital
Project Fund appropriations require specific action by the City Council, are adopted on an
individual project basis, and may be appropriated on a multi-year basis. General Capital Project
funds are accounted for and budgeted on the modified accrual basis.

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