Page 264 - Grapevine FY22 Adopted Budget v2

Division - The smallest unit of budgetary accountability and control, which encompasses
specific work units for accomplishing a City operation.

EMS - Emergency Medical Services

EMT - Emergency Medical Technician

Effective Tax Rate - State law in Texas prescribes a formula for calculating the effective tax
rate for cities. The net effect of the formula is to produce a tax rate that goes down when property
values rise because of inflation and vice versa. The intent is to generate a rate that produces
approximately the same revenue as the year before. The formula does make adjustments for
newly annexed property and newly constructed property.

Encumbrance - The commitment of appropriated funds to purchase an item or service.

Enterprise Fund - A fund established to account for operations that are financed and operated in
a manner similar to private business. It is the City's intent to recover the costs of providing a
service primarily through user charges.

EPA - Environmental Protection Agency

Expenditures - Outflow of non-enterprise funds paid or to be paid for an asset obtained or goods
and services obtained.

Expenses - Outflow of enterprise funds paid or to be paid for an asset obtained or goods and
services obtained.

Fiscal Policy - The City's policies with respect to taxes, spending, and debt management as they
relate to government services, programs, and capital investment. Reflect a set of principals for
the planning and programming of government budgets.

Fiscal Year - The time period designated by the City signifying the beginning and ending period
for recording financial transactions. The City of Grapevine has specified October I to September
30 as its fiscal year.

Fixed Assets - Assets of a long-term character that are intended to continue to be held or used,
such as land, buildings, improvements other than buildings, machinery and equipment.

Franchise Fee - A fee levied by City Council on businesses that use City property or right-of-
way. This fee is usually charged as a percentage of gross receipts.

Full Funding - Term used to designate full year payment for personnel or other budgeted items.

Full-Time Equivalent (FTE) - The measure of authorized personnel often referred to as worker-
years. The full time equivalent of 1 position (1 FTE) approximately represents 2080 hours of
work per year.

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