Page 85 - CityofForestHillFY25AdoptedBudget

Delinquent Taxes: Taxes that remain unpaid on and after the date due, after which a penalty for nonpayment is
attached.

Department: A major administrative division of the City that indicates over all management responsibility for an
operation or group of related operations within a functional area.

Depreciation: The process of estimating and recording the lost usefulness or expired useful life 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 order to replace the item at the end of its useful life.

Designations: Designations are the desired uses of fund balance which are discretionary in nature in that the
requested items were not budgeted in the prior year. To be a valid designation request, the department must not
have spent all of their prior year budget (i.e. have savings), and must provide justification for the request approved
by the City Manager.

Disbursement: Payment for goods and services in cash or check.

Effectiveness: A measure of how adequately the intended purpose is accomplished and the intended or expected
results are produced.

Encumbrance: The commitment of appropriated funds to purchase an item or service. Committed funds become
encumbered when a purchasing requisition becomes an actual purchase order.

Enterprise Fund: A governmental accounting fund used to account for operations that are financed and operated in
a manner similar to private business enterprises, where the intent of the governing body is to recover the cost of
providing goods through user fees. Rate schedules for these services are established to insure that revenues are
adequate to meet all necessary expenditures. Enterprise funds within the City of Forest Hill are established for
services such as water and sewer.

Estimated Revenue: The amount of projected revenue to be collected during the fiscal year. It may also be defined
as the proposed financing sources estimated to finance the proposed projected expenditure.

Expenditure: Decreases in the use of net financial resources other than through inter-fund transfer.

Expenses: Outflow or other depletion of assets or incurrence of liabilities during a specific period of time which
results from the delivery or production of goods, rendering of services, or carrying out of other activities that
constitute the entity's ongoing major central operations.

Fiscal Year: The twelve-month period to which the annual operating budget applies and at the end of which a
government determines its financial position and the results of its operations. The City of Forest Hill’s fiscal year is
October 1 through September 30.

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