Page 335 - City of Watauga FY22 Adopted Budget

GLOSSARY OF TERMS

Fiscal Year: The 12-month period covered by the budget. For the City of Watauga, the fiscal year
begins October 1 and ends September 30.

Fixed Assets: Assets of long-term character, which are intended to continue to be held or used,
such as buildings, infrastructure, machinery, and equipment.

Franchise Fee: Fees levied by the City in return for granting a privilege, which permits the
continual use of public property, such as city streets, in providing their services to the citizens of
the community.

Full-Time Equivalent: Refers to the number of full-time employees, plus all part time and seasonal
employees pro-rated to full time increments.

Fund: A fiscal and accounting entity with a self- balancing set of accounts recording cash and
other financial resources along with all related liabilities and residual equities or balances and
related changes. These accounts are segregated for the purpose of carrying on specific activities
or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

Fund Balance: The assets of a fund less liabilities, as determined at the end of each fiscal period.
Any reservations of fund balance are deducted to result in an “unreserved fund balance”.

Fund Type: In governmental accounting, all funds are classified into eight fund types: General,
Special Revenue, Debt Service, Capital Projects, Special Assessment, Enterprise, Internal Service,
and Trust and Agency.

GAAP: “Generally Accepted Accounting Principles” as determined through common practice or as
promulgated by the Governmental Accounting Standards Board (GASB), Financial Accounting
Standards Board (FASB), or various other accounting standard setting bodies.

General Fund: The General Fund accounts for most of the financial resources of the government.
General Fund revenues include property taxes, licenses and permits, local taxes, service charges,
and other types of revenue. This fund usually includes most of the basic operating services, such
as fire and police protection, park and recreation, library, public works and general administration.

General Obligation Bonds: Bonds that finance a variety of public projects, which pledge the full
faith and credit of the City.

Governmental Accounting Standards Board (GASB): The ultimate authoritative accounting and
financial reporting standard – setting body for state and local governments.

Governmental Fund: A fund used to account for mainly tax-supported activities.

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.

Infrastructure: The underlying permanent foundation or basic framework.

Interest and Sinking Fund (I & S): See Debt Service Fund.

Interest Earnings: The earnings from available funds invested during the year in approved
investment vehicles such as U.S. Treasury Bonds, Governmental Agencies, and Certificates of
Deposits.

326