Page 538 - Bedford-FY24-25 Budget

Unissued: Balance of a bond authorization not yet sold. Upon completion or abandonment of a
Bonds Authorized and
project, any remaining balance of authorized and unissued bonds may not be used for other purposes, but must be rescinded
by the community's legislative body to be removed from community's books.

Bond Issue: Generally, the sale of a certain number of bonds at one time by a governmental unit.

Bond Rating (Municipal): A credit rating assigned to a municipality to help investors assess the future ability, legal obligation,
and willingness of the municipality (bond issuer) to make timely debt service payments. Stated otherwise, a rating helps
prospective investors determine the level of risk associated with a given xed-income investment. Rating agencies, such as
Moody's and Standard and Poors, use rating systems, which designate a letter or a combination of letters and numerals where
AAA is the highest rating and C1 is a very low rating.

Budget: A plan for allocating resources to support particular services, purposes and functions over a speci ed period of time.

Calendar: The schedule of dates and used as a guide to complete the various steps of the budget preparation and
Budget
adoption process.

Basis: The City's accounting records for general governmental operations are maintained on a modi ed accrual
Budgetar y
basis, with the revenues recognized when they become both available and measurable and expenditures recognized when the
services or goods are received and the liabilities are incurred. Accounting records for the City's proprietary funds are
maintained on an accrual basis.

Budgetar y Control: The control of management of the organization in accordance with an approved budget for the purposes
of keeping expenditures within the limitations of available appropriations and revenues.

Budget Document: The compilation of the spending plans for the various funds, along with supporting schedules, tables, and
charts which, in total, comprises the annual revenue and expenditures plan.

Capital Assets: All real and tangible property used in the operation of government, which is not easily converted into cash, and
has an initial useful live extending beyond a single nancial reporting period. Capital assets include land and land
improvements; infrastructure such as roads, bridges, water and sewer lines; easements; buildings and building improvements;
vehicles, machinery and equipment. Communities typically de ne capital assets in terms of a minimum useful life and a
minimum initial cost. (See Fixed Assets)

Budget: An appropriation or spending plan that uses borrowing or direct outlay for capital or xed asset
Capital
improvements. Among other information, a capital budget should identify the method of nancing each recommended
expenditure, i.e., tax levy or rates, and identify those items that were not recommended. (See Capital Assets, Fixed Assets)

Capital Outlay: An expenditure which results in the acquisition of, or addition to, xed assets, and meets these criteria: has an
anticipated useful life of more than one year; can be permanently identi ed as an individual unit of property; belongs to one of
the following categories: Land, Buildings, Equipment and Vehicles; constitutes a tangible, permanent addition to the value of
City assets; cost generally exceeds at least $1,000; does not constitute repair or maintenance; and, is not readily susceptible to
loss.

Fund: A type of governmental fund used to account for the acquisition or construction of capital facilities
Capital Project
being nanced from general obligations or certi cate of obligation bond proceeds, grants, or transfers from other funds.

Cash: Currency, coin, checks, postal and express money orders and bankers’ drafts on hand or on deposit with an of cial or
agent designated as custodian of cash and bank deposits.

Management: The process of monitoring the ebb and ow of money in an out of municipal accounts to ensure cash
Cash
availability to pay bills and to facilitate decisions on the need for short- term borrowing and investment of idle cash.

(CD): A bank deposit evidenced by a negotiable or non-negotiable instrument, which provides on its
Cer ti{cate of Deposit
face that the amount of such deposit plus a speci ed interest payable to a bearer or to any speci ed person on a certain
speci ed date, at the expiration of a certain speci ed time, or upon notice in writing.

(C .O.): Tax supported bonds that are similar to general obligation bonds and can be issued after
Cer ti{cates of Obligation
meeting strict publication requirements and with nal approval by the City Council.

City of Bedford, TX | Adopted Budget FY 2024-2025 Page 538