Page 550 - FortWorthFY22AdoptedBudget

Glossary and Acronyms

Categories: A basis for distinguishing types of expenditures; the three major categories used by the City of Fort
Worth are: salary & benefits, general operating & maintenance, capital, debt service, and transfer out & other.
Below provides more detail on these three with the addition of capital and debt service:
· Salary & Benefits consist of the costs associated with compensation to individuals providing services to
the city as employees and includes all salary, supplemental costs, and indirect and non-cash compensation
paid to an employee such as social security, unemployment compensation, workers compensation, health
insurance, life insurance, medical plan, paid vacation, pension, and gratuity.
· General Operating & Maintenance includes items such as the following:
o Professional and Technical Services represent costs associated with services or activities
performed under-expressed or implied costs and charges for professional, specialized, or trade
services rendered. This category includes services provided to city departments through Internal
Service Funds such as computer technical support, copy and mailroom services, and vehicle fleet
maintenance services and per-capita-allocated service costs such as insurance, healthcare, legal,
and administrative services.
o Utilities, Repairs, and Rentals consist of items and supplies that are necessary to perform public
service duties.
o Other Purchased Services are expenses that may be required in connection with a public works
project meeting the definition of public work.
o Supplies consist of the costs associated with goods that are consumed or used in connection with
providing city services and that are of either limited cost or have a limited useful life. Examples
include basic office supplies; minor electronic equipment; books and magazines; construction
raw materials; postage; uniforms; vehicle fuel and accessories; and library books.
· Capital is expenses and outlays related to the acquisition or construction of fixed assets. The city’s fixed
assets fall primarily into the following categories: 1) Land; 2) Improvements other than buildings; 3)
Buildings; 4) Equipment.
· Debt Service expenses refer to money paid as interest and principal on loans received or public
securities issued by the city as borrower or issuer.
o Principal refers to the unpaid balance of funds borrowed, excluding any interest or other fees.
o Interest refers to money that is paid in exchange for borrowing or using another person's or
organization's money.
· Transfer Out & Other is an approved movement of monies from one separate fund to another fund.
Budgets can call for Transfers-In to the General Fund to pay for centralized expenditures such as utilities,
insurance, or fringe benefits. Transfers Out from the General Fund may be required to subsidize new
special activity funds or those with insufficient or unreliable revenue sources.

Certificate of Obligation: Debt that local government may use to fund public works without voter approval unless
5 percent of qualified voters within the jurisdiction petition for an election on the spending in question. The debt
is supported by property taxes or other local revenues and is often issued to take advantage of lower interest
rates.

Collector: A person who collects and accounts for the property taxes for the taxing unit.

Commitment: The pledge of appropriated funds to purchase an item or service. Funds are committed when a
requisition is issued through the Purchasing Division of the city.

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