Page 528 - CityofColleyvilleFY23AdoptedBudget

Distinguished Budget Presentation Program: A voluntary program administered by the Government Finance Of cers
Association to encourage governments to publish ef ciently organized and easily readable budget documents and to provide
peer recognition and technical recommendations to the scal of cers preparing them.

Encumbrance: A reservation of funds to cover obligations arising from purchase orders, contracts, or salary commitments that
are chargeable to, but not yet paid from, a speci c appropriation account.

Enterprise Funds: An enterprise fund is a separate accounting and nancial reporting mechanism for municipal services for
which a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public the portion of
total costs of a service that is recovered through user charges and the portion that is subsidized by the tax levy, if any. With an
enterprise fund, all costs of service delivery--direct, indirect, and capital costs—are identi ed. This allows the community to
recover total service costs through user fees if it chooses. Enterprise accounting also enables communities to reserve the
"surplus" or net assets unrestricted generated by the operation of the enterprise rather than closing it out to the general fund
at year-end. Services that may be treated as enterprises include, but are not limited to, water, sewer, hospital, and airport
services.

Equalized Valuations (EQVs): The determination of the full and fair cash value of all property in the community that is subject
to local taxation.

Estimated Receipts: A term that typically refers to anticipated local revenues often based on the previous year's receipts and
represent funding sources necessary to support a community's annual budget. (See Local Receipts)

Exemptions: A discharge, established by statute, from the obligation to pay all or a portion of a property tax. The exemption is
available to particular categories of property or persons upon the timely submission and approval of an application to the
assessors. Properties exempt from taxation include hospitals, schools, houses of worship, and cultural institutions. Persons who
may qualify for exemptions include disabled veterans, blind individuals, surviving spouses, and seniors.

Expenditure: An outlay of money made by municipalities to provide the programs and services within their approved budget.

Fiduciar y Funds: Repository of money held by a municipality in a trustee capacity or as an agent for individuals, private
organizations, other governmental units, and other funds. These include pension (and other employee bene t) trust funds,
investment trust funds, private- purpose trust funds, and agency funds.

Fixed Assets: Long-lived, assets such as buildings, equipment and land obtained or controlled as a result of past transactions
or circumstances.

Fixed Costs: Costs that are legally or contractually mandated such as retirement, FICA/Social Security, insurance, debt service
costs or interest on loans.

Float: The difference between the bank balance for a local government’s account and its book balance at the end of the day.
The primary factor creating oat is clearing time on checks and deposits. Delays in receiving deposit and withdrawal
information also in uence oat.

Full Faith and Credit: A pledge of the general taxing powers for the payment of governmental obligations. Bonds carrying
such pledges are usually referred to as general obligation or full faith and credit bonds.

Fund: An accounting entity with a self-balancing set of accounts that are segregated for the purpose of carrying on identi ed
activities or attaining certain objectives in accordance with speci c regulations, restrictions, or limitations.

Fund Accounting: Organizing nancial records into multiple, segregated locations for money. A fund is a distinct entity within
the municipal government in which nancial resources and activity (assets, liabilities, fund balances, revenues, and
expenditures) are accounted for independently in accordance with speci c regulations, restrictions or limitations. Examples of
funds include the general fund and enterprise funds. Communities whose accounting records are organized according to the
Uniform Municipal Accounting System (UMAS) use multiple funds.

Fund Balance: The total accumulation of operating surpluses and de cits since the beginning of a local government's
existence. The fund balance formula: fund balance = assets - liabiliites.

GASB 34: A major pronouncement of the Governmental Accounting Standards Board that establishes new criteria on the form
and content of governmental nancial statements. GASB 34 requires a report on overall nancial health, not just on individual
funds. It requires more complete information on the cost of delivering value estimates on public infrastructure assets, such as

City of Colleyville | Budget Book 2023 Page 528