Page 529 - CityofColleyvilleFY23AdoptedBudget

bridges, road, sewers, etc. It also requires the presentation of a narrative statement the government's nancial performance,
trends and prospects for the future.

GASB 45: This is another Governmental Accounting Standards Board major pronouncement that each public entity account
for and report other postemployment bene ts in its accounting statements. Through actuarial analysis, municipalities must
identify the true costs of the OPEB earned by employees over their estimated years of actual service.

Generally Accepted Accounting Principles (G . A . A .P.): Detailed accounting standards and practices for state and local
governments as prescribed by the Governmental Accounting Standards Board (GASB).

General Fund: The fund used to account for most nancial resources and activities governed by the normal appropriation
process.

General Obligation Bonds: Bonds issued by a municipality for purposes allowed by statute that are backed by the full faith and
credit of its taxing authority.

GFOA : The Government Finance Of cers Association of the United States and Canada. The mission of the GFOA is to enhance
and promote the professional management of governments for the public bene t by identifying and developing nancial
policies and best practices and promoting their use through education, training, facilitation of member networking, and
leadership.

Governing Body: A board, committee, commission, or other executive or policymaking bodyof a municipality or school district.

Indirect Cost: Costs of a service not re ected in the operating budget of the entity providing the service. An example of an
indirect cost of providing water service would be the value of time spent by non-water department employees processing
water bills. A determination of these costs is necessary to analyze the total cost of service delivery. The matter of indirect costs
arises most often in the context of enterprise funds.

Interest: Compensation paid or to be paid for the use of money, including amounts payable at periodic intervals or discounted
at the time a loan is made. In the case of municipal bonds, interest payments accrue on a day-to-day basis, but are paid every
six months.

Interest and Sinking (I. & S .): The component of the ad valorem tax rate that funds General Obligation and Certi cates of
Obligation debt payments.

Interest Rate: The interest payable, expressed as a percentage of the principal available for use during a speci ed period of
time. It is always expressed in annual terms.

Investments: Securities and real estate held for the production of income in the form of interest, dividends, rentals or lease
payments. The term does not include xed assets used in governmental operations.

Line Item Budget: A budget that separates spending into categories, or greater detail, such as supplies, equipment,
maintenance, or salaries, as opposed to a program budget.

Local Aid: Revenue allocated by the state or counties to municipalities and school districts.

Maturity Date: The date that the principal of a bond becomes due and payable in full.

Municipal(s): (As used in the bond trade) "Municipal" refers to any state or subordinate governmental unit. "Municipals" (i.e.,
municipal bonds) include not only the bonds of all political subdivisions, such as cities, towns, school districts, special districts,
counties but also bonds of the state and agencies of the state.

Note: A short-term loan, typically with a maturity date of a year or less.

Objects of Expenditures: A classi cation of expenditures that is used for coding any department disbursement, such as
“personal services,” “expenses,” or “capital outlay.”

Of{cial Statement: A document prepared for potential investors that contains information about a prospective bond or note
issue and the issuer. The of cial statement is typically published with the notice of sale. It is sometimes called an offering
circular or prospectus.

City of Colleyville | Budget Book 2023 Page 529