Page 198 - City of Fort Worth Budget Book

Glossary and Acronyms

Capital Assets: Long-lived tangible assets obtained or controlled as a result of past transactions, events, or
circumstances. Capital assets include buildings, equipment, infrastructure, improvements other than buildings,
and land. In the private sector, these assets are referred to most often as "property," "plant," and "equipment."
Capital Expenditures: Expenditures resulting in the acquisition of, or in addition to, the government's general
capital assets.

Capital Improvement Program (CIP): A program that describes the capital projects and associated funding
sources the city intends to undertake in the current fiscal year plus four successive fiscal years, including the
acquisition or construction of capital facilities and assets, and the maintenance thereof.
Capital Improvement Program Budget: A Capital Improvement Program (CIP) Budget is a section of the
budget. Items in the CIP are usually construction projects designed to improve the value of government assets.
Examples of capital improvement projects include new roads, sewer lines, buildings, recreational facilities, and
large-scale remodeling.

Capital Projects Fund: A governmental fund established to account for resources used for the acquisition of
large capital improvements and non-reoccurring expenses other than those acquisitions accounted for in
proprietary or trust funds.

Cash Accounting: A basis of accounting in which transactions are recorded when cash is either received or
expended for goods and services.

Cash Balance: The amount of cash on hand and cash equivalents at any point in time, net of inflows and
outflows.

Cash Management: Refers to the management of the cash that is necessary to pay for government services
while investing temporary cash excesses to earn interest revenue. Cash management refers to the activities of
forecasting the inflows and outflows of cash, mobilizing cash to improve its availability for investment, establishing
and maintaining banking relationships, and investing funds to achieve the highest interest and return available for
temporary cash balances.

Categories: A basis for distinguishing types of expenditures; the three major categories used by the City of Fort
Worth are: salary & benefits, general operating & maintenance, capital, debt service, and transfer out & other.
Below provides more detail on these three with the addition of capital and debt service:
• Salary & Benefits consist of the costs associated with compensation to individuals providing services to
the city as employees and includes all salary, supplemental costs, and indirect and non-cash
compensation paid to an employee such as social security, unemployment compensation, workers
compensation, health insurance, life insurance, medical plan, paid vacation, pension, and gratuity.
• General Operating & Maintenance includes items such as the following:

○ Professional and Technical Services represent costs associated with services or activities
performed under-expressed or implied costs and charges for professional, specialized, or trade
services rendered. This category includes services provided to city departments through Internal
Service Funds such as computer technical support, copy and mailroom services, vehicle fleet
maintenance services, per-capita-allocated service costs such as insurance, healthcare, legal, and
administrative services.

○ Utilities, Repairs, and Rentals consist of items and supplies that are necessary to perform public
service duties.
○ Other Purchased Services are expenses that may be required in connection with a public works
project meeting the definition of public work.

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