Page 416 - CityofColleyvilleFY25AdoptedBudget

Budget: An annual plan of nancial operation embodying an estimate of proposed expenditures and the estimated
means of nancing them. The approved budget is authorized by ordinance and speci es the legal spending limits for the
scal year.

Capital Expenditures: Capital expenditures refer to funds used by the City to acquire, maintain, or improve long-term
assets such as infrastructure, buildings, equipment, or vehicles. These expenditures typically involve signi cant, one-time
outlays for items that have a useful life of ve years or more and a minimum investment threshold (e.g., $50,000). Capital
expenditures are intended to create future bene ts and are crucial for maintaining and enhancing the City's
infrastructure and operational capabilities. Examples include road improvements, facility construction, and major
equipment purchases.

Capital Improvement Program (CIP): A multi-year nancial plan for construction, acquisition, or major renovation of
physical assets such as buildings, streets, sewers, and recreational facilities.

Contingency: A budgetary reserve set aside for emergencies or unforeseen expenditures.

Consumer Price Index (CPI): The statistical measure of changes, if any, in the overall price level of consumer goods and
services. The index is often called the "cost-of-living index."

Debt Ser vice: The repayment of principal and interest on long-term debt, usually stated in annual terms based on an
amortization schedule.

De{cit: Excess of expenses over revenues at a speci c point in time.

Depreciation: The process of estimating and recording the loss of usefulness, expired useful life, or diminution of service
from a xed asset. Depreciation is recognized in enterprise and internal service funds.

Encumbrance: The commitment of appropriated funds for future expenditures.

Enterprise Funds: Funds used to account for the acquisition, operation, and maintenance of governmental facilities and
services that are entirely or predominantly self-supported by user charges. Examples include water and sewer services.

Exemptions: A discharge, established by statute, from the obligation to pay all or a portion of a property tax. The
exemption is available to particular categories of property or persons upon the timely submission and approval of an
application to the assessors. Properties exempt from taxation include hospitals, schools, houses of worship, and cultural
institutions. Persons who may qualify for exemptions include disabled veterans, blind individuals, surviving spouses, and
seniors.

Expenditure: Funds spent in accordance with budgeted appropriations on assets or goods and services obtained.

Fiduciar y Funds: Repository of money held by a municipality in a trustee capacity or as an agent for individuals, private
organizations, other governmental units, and other funds. These include pension (and other employee bene t) trust
funds, investment trust funds, private- purpose trust funds, and agency funds.

Full-time Equivalent (FTE): A unit of measurement that represents the workload of an employee in a way that makes
workloads comparable across various contexts. One FTE is equivalent to one full-time employee working a standard
number of hours, typically 40 hours per week. FTE is used to quantify the total labor input of part-time, full-time, and
temporary employees by converting hours worked into an equivalent number of full-time employees. For example, two
part-time employees working 20 hours per week would equal 1.0 FTE.

Fund: An accounting entity with a self-balancing set of accounts that are segregated for the purpose of carrying on
identi ed activities or attaining certain objectives in accordance with speci c regulations, restrictions, or limitations.

GASB 34: A major pronouncement of the Governmental Accounting Standards Board that establishes new criteria on the
form and content of governmental nancial statements. GASB 34 requires a report on overall nancial health, not just on
individual funds. It requires more complete information on the cost of delivering value estimates on public infrastructure
assets, such as bridges, road, sewers, etc. It also requires the presentation of a narrative statement the government's
nancial performance, trends and prospects for the future.

City of Colleyville | Budget Book 2025 Page 416