Page 190 - Haltom City FY 22 Budget

CITY OF HALTOM CITY ANNUAL BUDGET, FY2022 Supplemental Information

Depreciation: The process of estimating and recording the lost usefulness, expired useful life or
diminution of service from a fixed asset that cannot or will not be restored by repair and will be
replaced. The cost of the fixed asset’s lost usefulness is the depreciation or the cost to reserve in
order to replace the item at the end of its useful life.

Drainage Fund: This fund was created during the FY2005 budget preparation process in order to
generate revenue needed to address flooding and drainage issues in Haltom City. Projects have
been undertaken and studies conducted on the Big Fossil Creek, the required National Pollution
Discharge Elimination System (NPDES), Haltom Pond and Solona Drive.

Enterprise Fund: A proprietary fund in which the services provided are financed and operated
similarly to those of a private business. The rate schedules for these services are established to
insure that revenues are adequate to meet all necessary expenses. Enterprise funds in Haltom
City are established for water and sewer service and drainage utility.

Expenditures: This term refers to the outflow of funds paid or to be paid for an asset obtained or
goods and services received.

Expenses: Charges incurred (whether paid immediately or unpaid) for operation, maintenance,
interest, and other charges.

Fiscal Year: The time period designated by the City signifying the beginning and ending
period for recording financial transactions. The City of Haltom City has specified October 1 to
September 30 as its fiscal year.

Fund: A fully self-contained accounting entity used for measuring the operating activities of a
standalone operational unit of the City.

Fund Balance: The difference between assets and liabilities reported in a governmental fund.

General Fund: The General Fund accounts for many of the financial resources of the
government. General Fund revenues include taxes, franchise fees, licenses and permits, service
charges, and other types of revenue. This fund usually includes most of the basic operating
services, such as fire and police protection, finance, administration, park and recreation, libraries,
streets, and building maintenance.

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 general
revenues of the entity. These bonds are backed by the full faith and credit of the issuing
government.