Page 191 - Haltom City FY 22 Budget

CITY OF HALTOM CITY ANNUAL BUDGET, FY2022 Supplemental Information

Generally Accepted Accounting Principles (GAAP): Uniform minimum standards for financial
accounting and recording, encompassing the conventions, rules and procedures that define
accepted accounting principles.

Governmental Funds: Funds generally used to account for tax-supported activities. There are
five different types of governmental funds: the general fund, special revenue funds, debt service
funds, capital projects funds, and permanent funds.

Impact Fees: Fees charged to developers to cover, in whole or in part, the anticipated cost of
Improvements that will be necessary as a result of the development (e.g. parks, sidewalks).

Internal Service Fund: A fund used to account for the financing of goods and services provided
by one City department or cost center to other department, on a cost-reimbursement basis.

Interfund Transfers: Flows of assets (such as cash or goods) between funds and blended
component units of the primary government without equivalent flows of assets in return and
without a requirement for repayment.

Interest and Sinking (I&S): That portion of the property tax rate and subsequent property tax
revenue appropriated to the retirement of principal and interest on bonded debt.

Legal Debt Margin: The excess of the amount of debt legally authorized over the amount of debt
outstanding.

Liabilities: Debt or other legal obligations arising out of transactions in the past, which must be
liquidated, renewed, or refunded, at some future date.

Maintenance and Operation (M&O): That portion of the property tax rate and subsequent
property tax revenue appropriated to the financing of general government operations within the
General Fund.

Modified Accrual Basis of Accounting: Basis of accounting according to which (a) revenues
are recognized in the accounting period in which they become available and measurable and
(b) expenditures are recognized in the accounting period in which the fund liability is incurred, if
measurable, except for unmatured interest on general long-term debt and certain similar accrued
obligations, which should be recognized when due.