Page 195 - CityofHaltomFY24Budget

City Of Haltom City Annual Budget, Fy2024 Supplemental Information 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
Depreciation: The process of estimating and recording the lost usefulness, expired useful life or accepted accounting principles.
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 Governmental Funds: Funds generally used to account for tax-supported activities. There are
order to replace the item at the end of its useful life. five different types of governmental funds: the general fund, special revenue funds, debt service

funds, capital projects funds, and permanent funds.
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 Impact Fees: Fees charged to developers to cover, in whole or in part, the anticipated cost of
been undertaken and studies conducted on the Big Fossil Creek, the required National Pollution Improvements that will be necessary as a result of the development (e.g. parks, sidewalks).
Discharge Elimination System (NPDES), Haltom Pond and Solona Drive.

Internal Service Fund: A fund used to account for the financing of goods and services provided
Enterprise Fund: A proprietary fund in which the services provided are financed and operated by one City department or cost center to other department, on a cost-reimbursement basis.
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 Interfund Transfers: Flows of assets (such as cash or goods) between funds and blended
City are established for water and sewer service and drainage utility. component units of the primary government without equivalent flows of assets in return and

without a requirement for repayment.
Expenditures: This term refers to the outflow of funds paid or to be paid for an asset obtained or
goods and services received.
Interest and Sinking (I&S): That portion of the property tax rate and subsequent property tax
Expenses: Charges incurred (whether paid immediately or unpaid) for operation, maintenance, revenue appropriated to the retirement of principal and interest on bonded debt.
interest, and other charges.

Legal Debt Margin: The excess of the amount of debt legally authorized over the amount of debt
Fiscal Year: The time period designated by the City signifying the beginning and ending outstanding.
period for recording financial transactions. The City of Haltom City has specified October 1 to
September 30 as its fiscal year.

Liabilities: Debt or other legal obligations arising out of transactions in the past, which must be
Fund: A fully self-contained accounting entity used for measuring the operating activities of a liquidated, renewed, or refunded, at some future date.
standalone operational unit of the City.
Maintenance and Operation (M&O): That portion of the property tax rate and subsequent
Fund Balance: The difference between assets and liabilities reported in a governmental fund. property tax revenue appropriated to the financing of general government operations within the

General 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 Modified Accrual Basis of Accounting: Basis of accounting according to which (a) revenues
charges, and other types of revenue. This fund usually includes most of the basic operating are recognized in the accounting period in which they become available and measurable and
services, such as fire and police protection, finance, administration, park and recreation, libraries, (b) expenditures are recognized in the accounting period in which the fund liability is incurred, if
streets, and building maintenance. measurable, except for unmatured interest on general long-term debt and certain similar accrued

obligations, which should be recognized when due.
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.