Page 351 - FY 2025 Adopted Operating Budget and Business Plan

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GLOSSARY OF TERMS (CONTINUED)

Fiscal Year: The time period designated by the City signifying the beginning and ending period for recording financial
transactions. The City of Arlington has specified October 1 to September 30 as its fiscal year.

Franchise Fee: A fee paid by public service businesses for use of City streets, alleys and property in providing their
services to the citizens of a community. Services requiring franchises include electricity, telephone, water, natural gas, cable
television and sanitation.

Fund: In governmental accounting a fund may be described as representing a distinct phase of the activities of government
and is controlled by a self-balancing group of accounts in which all of the financial transactions of the particular phase are
recorded.

Fund Balance: The unencumbered cash remaining in a fund at the end of a specified time period, usually the end of the
fiscal year.

General Fund: The largest fund within the City, the General Fund accounts for most of the financial resources of the
government. General Fund revenues include property taxes, licenses and permits, local taxes, service charges, and other types
of revenue. This fund usually includes most of the basic operation services, such as fire and police protection, parks and
recreation, libraries, public works, transportation, and general administration.

General Obligation Bonds: Bonds that finance public projects such as streets, municipal facilities, and park
improvements. The repayment of these bonds is made from property taxes, and these bonds are backed by the full faith and
credit of the issuing government.

Governmental Funds: Funds generally used to account for tax-supported activities.

Homestead Exemption: A deduction from the total taxable assessed value of owner-occupied property. For FY
2023, the exemption in Arlington is 20%, with an additional $60,000 for the elderly and disabled.

Internal Service Fund: Funds used to account for the financing of goods or services provided by one department to
another department on a cost reimbursement basis. Examples in Arlington include the General Services Fund, the
Communication Services Fund, the Information Technology Fund, and the Fleet Services Fund.

Issuing Debt: see Bond Sales, Certificates of Obligation and Commercial Paper.

Modified Accrual Basis: A modified method of accrual basis accounting whereby revenues are recognized when
they become both measurable and available for use during the year. For example, certain taxes (Sales and Alcoholic Beverage)
are considered measurable when in the hands of intermediary collecting governments (State of Texas) and are recognized as
revenue at that time. The City’s General Fund utilizes this basis of accounting.

No New Revenue Tax Rate: The tax rate which generates the same revenue in the proposed year as in the current
year from properties on the tax roll in both years (excludes new property)

Objective: Performance indicator of a program.

Operating Budget: The budget that pertains to daily operations which provide basic governmental services. The
operating budget contains appropriations for such expenditures as personnel, supplies, utilities, materials, travel, fuel, and
capital equipment.

Outcome: Desired state that will arise from strategically applied resources.

FY 2025 Adopted Budget and Business Plan 342 City of Arlington, Texas