Page 194 - CityofHaltomFY24Budget

City Of Haltom City Annual Budget, Fy2024 Supplemental Information
Depreciation: The process of estimating and recording the lost usefulness, expired useful life or
diminution of service from a fixed asset that cannot or will not be restored by repair and will be
replaced. The cost of the fixed asset’s lost usefulness is the depreciation or the cost to reserve in
order to replace the item at the end of its useful life.
Drainage Fund: This fund was created during the FY2005 budget preparation process in order to
generate revenue needed to address flooding and drainage issues in Haltom City. Projects have
been undertaken and studies conducted on the Big Fossil Creek, the required National Pollution
Discharge Elimination System (NPDES), Haltom Pond and Solona Drive.
Enterprise Fund: A proprietary fund in which the services provided are financed and operated
similarly to those of a private business. The rate schedules for these services are established to
insure that revenues are adequate to meet all necessary expenses. Enterprise funds in Haltom
City are established for water and sewer service and drainage utility.
Expenditures: This term refers to the outflow of funds paid or to be paid for an asset obtained or
goods and services received.
Expenses: Charges incurred (whether paid immediately or unpaid) for operation, maintenance,
interest, and other charges.
Fiscal Year: The time period designated by the City signifying the beginning and ending
period for recording financial transactions. The City of Haltom City has specified October 1 to
September 30 as its fiscal year.
Fund: A fully self-contained accounting entity used for measuring the operating activities of a
standalone operational unit of the City.
Fund Balance: The difference between assets and liabilities reported in a governmental fund.
General Fund: The General Fund accounts for many of the financial resources of the
government. General Fund revenues include taxes, franchise fees, licenses and permits, service
charges, and other types of revenue. This fund usually includes most of the basic operating
services, such as fire and police protection, finance, administration, park and recreation, libraries,
streets, and building maintenance.
General Obligation Bonds: Bonds that finance a variety of public projects such as streets,
buildings and improvements. The repayment of these bonds is usually made from the general
revenues of the entity. These bonds are backed by the full faith and credit of the issuing
government.
City Of Haltom City Annual Budget, Fy2024 Supplemental Information
Generally Accepted Accounting Principles (GAAP): Uniform minimum standards for financial
accounting and recording, encompassing the conventions, rules and procedures that define
accepted accounting principles.
Governmental Funds: Funds generally used to account for tax-supported activities. There are
five different types of governmental funds: the general fund, special revenue funds, debt service
funds, capital projects funds, and permanent funds.
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 (e.g. parks, sidewalks).
Internal Service Fund: A fund used to account for the financing of goods and services provided
by one City department or cost center to other department, on a cost-reimbursement basis.
Interfund Transfers: Flows of assets (such as cash or goods) between funds and blended
component units of the primary government without equivalent flows of assets in return and
without a requirement for repayment.
Interest and Sinking (I&S): That portion of the property tax rate and subsequent property tax
revenue appropriated to the retirement of principal and interest on bonded debt.
Legal Debt Margin: The excess of the amount of debt legally authorized over the amount of debt
outstanding.
Liabilities: Debt or other legal obligations arising out of transactions in the past, which must be
liquidated, renewed, or refunded, at some future date.
Maintenance and Operation (M&O): That portion of the property tax rate and subsequent
property tax revenue appropriated to the financing of general government operations within the
General Fund.
Modified Accrual Basis of Accounting: Basis of accounting according to which (a) revenues
are recognized in the accounting period in which they become available and measurable and
(b) expenditures are recognized in the accounting period in which the fund liability is incurred, if
measurable, except for unmatured interest on general long-term debt and certain similar accrued
obligations, which should be recognized when due.