Page 36 - Forest Hill FY22 Annual Budget

Fore�Hill

C

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 pai1 of the annual
budget process.

The Debt Service Fund is used to account for the payment of interest and principal on all
general obligation debts of the City. The primary source ofrevenue for the debt service fund is
property taxes. These funds are designated to meet current and future debt service requirements
on general government debt.

Capital Project Funds are used to account for capital outlay projects financed from general debt
issued by the City. Capital Project Funds are 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.

These types of funds are also used to account for activities to plan the replacement of capital
transportation, IT and other heavy equipment in accordance with replacement schedules based on
life of equipment and usage. The two funds utilized for this purpose are the Transportation
Equipment Replacement and IT Replacement Funds.

Enterprise Funds are used to account for operations that are financed and operated in a manner
similar to private business enterprises. Such funds are to be financed or recovered primarily
through user charges. Other Enterprise Funds include the Sanitation Fund, which is used to
account for user fees and expenses related to the City's garbage collection activities.

32