Page 541 - Bedford-FY24-25 Budget

Governmental Fund: Applies to all funds except for the pro t and loss funds (i.e., enterprise funds), or funds used to account for
resources held for the bene t of parties outside of the government (i.e., duciary funds).

Grant: A contribution by a government or other organization to support a particular function.

Cost: Costs of a service not re ected in the operating budget of the entity providing the service. An example of an
Indirect
indirect cost of providing water service would be the value of time spent by non-water department employees processing
water bills. A determination of these costs is necessary to analyze the total cost of service delivery. The matter of indirect costs
arises most often in the context of enterprise funds.

Infrastructure: That portion of a city's assets located at or below ground level, including the water system, sewer system, and
streets.

Inputs: A type of performance measure reporting the resources used by a department or division to produce outputs and
outcomes. Examples include: number of full time equivalents, equipment, facilities and supplies.

Interest: Compensation paid or to be paid for the use of money, including amounts payable at periodic intervals or discounted
at the time a loan is made. In the case of municipal bonds, interest payments accrue on a day-to-day basis, but are paid every
six months.

S .): The component of the ad valorem tax rate that funds General Obligation and Certi cates of
Interest and Sinking (I. &
Obligation debt payments.

Rate: The interest payable, expressed as a percentage of the principal available for use during a speci ed period of
Interest
time. It is always expressed in annual terms.

Investments: Securities and real estate held for the production of income in the form of interest, dividends, rentals or lease
payments. The term does not include xed assets used in governmental operations.

Liabilities: Debt or other legal obligations arising out of transactions in the past which must be liquidated, renewed, or
refunded at some future date. This term does not include encumbrances.

Budget: A budget that separates spending into categories, or greater detail, such as supplies, equipment,
Line -Item
maintenance, or salaries.

Debt: Unmatured debt of a government expected to be repaid from government funds. An average repayment
Long-Term
schedule is 20 years.

Maintenance: All materials or contract expenditures covering repair and upkeep of City Buildings, machinery, equipment,
systems, and land.

Maintenance and Operations (M. & O.): The component of the ad valorem tax rate that funds day-to-day operating expenses.

Fund: A fund whose revenues, expenditures/expenses, assets, or liabilities are at least 10 percent of the corresponding
Major
totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all government and
enterprise funds.

Maturity Date: The date that the principal of a bond becomes due and payable in full.

Accounting: A basis of accounting in which revenues are recognized in the accounting period when they
Modi{ed Accrual
become available and measurable. Expenditures are recognized in the accounting period in which the fund liability is incurred.

Municipal(s): (As used in the bond trade) “Municipal” refers to any state or subordinate governmental unit. “Municipals” (i.e.,
municipal bonds) include not only the bonds of all political subdivisions, such as cities, towns, school districts, special districts,
counties but also bonds of the state and agencies of the state.

Assets: Assets in excess of a fund's liabilities. Net assets have the following components: restricted; invested in capital
Net
assets, net of related debt; and unrestricted.

Note: A short-term loan, typically with a maturity date of a year or less.

City of Bedford, TX | Adopted Budget FY 2024-2025 Page 541