Page 130 - Pantego FY22 Operating Budget

Enterprise Fund – An accounting fund in which the services provided are financed and operated
similar to those of a private business. The rates for those services are established to insure that
revenues are adequate to meet all necessary expenditures. The Town of Pantego has one (1)
enterprise fund: the Water and Sewer Fund.

Estimated Revenue – The amount of projected revenue to be collected during the fiscal year.

Expenditure – This term refers to the outflow of funds paid or to be paid for an asset obtained or goods
and services obtained regardless of when the expense is actually paid. This term applies to all
governmental funds. Note: An encumbrance is not an expenditure.

Expenses – Charges incurred (whether paid immediately or unpaid) for operation, maintenance,
interest and other charges. Expenses represent the total cost of operations during a period regardless
of timing of related expenditures.

Fiscal Year – A period to which the annual operating budget applies and at the end of which the Town
determines its financial position and the results of its operations. The fiscal year for the Town of
Pantego begins October 1 and ends September 30.

Fixed Assets – Assets of a long term character which are intended to continue to be held or used,
such as land, buildings, machinery and equipment.

Franchise Fee – This is a charge paid for the use of Town streets and public right-of-ways and is in
lieu of all other municipal charges, fees, street rentals, pipe taxes or rentals, easement or other like
franchise fees, inspections, fees, and/or charges of every kind except only Ad Valorem and special
assessment taxes for public improvements such as gas, telephone and cable.

Full-Time Equivalent (FTE) – A unit of measure based on the number of hours an employee works
during the fiscal year. One (1) FTE is equal to 2080 hours.

Function – A group of related activities aimed at accomplishing a major service or regulatory program
for which a government is responsible.

Fund – A fiscal and accounting entity with a self-balancing set of accounts that records all financial
transactions for specific activities or government functions. Commonly used fund in government
accounting are: general fund, special revenue funds, debt service funds, capital project funds,
enterprise funds, internal service funds, trust and agency funds, special program funds and special
assessment funds.

Fund Balance – The excess of assets over liabilities in governmental funds, also known as surplus
funds or fund equity. This information is used by taxpayers, bond analysts, research groups, oversight
agencies, and government managers and legislators in key decision-making regarding a government’s
available liquid resources for repaying debt, reducing taxes, adding or expanding programs or projects,
and enhancing financial position. In proprietary funds, fund balance is referred to as “Net Position.”

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