Page 436 - CityofKellerFY25Budget

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FUND. A fiscal and accounting entity
ENCUMBRANCE. An obligation, usually in the established to record receipt and disbursement of
form of a purchase order, contract, or salary income from sources set aside to support specific
commitment, related to uncompleted contracts activities or to attain certain objectives. Each
for goods or services. Used in budgeting, fund is treated as a distinct fiscal entity where
encumbrances are not classified as expenditures assets equal liabilities plus fund balances.
or liabilities, but are shown as a reservation of
fund balance. Upon payment, encumbrances are FUND BALANCE. Unless stated otherwise, the
recorded as expenditure and liquidated, thereby excess of a fund's current assets over its current
releasing the reservation of fund balance. liabilities; sometimes called working capital in
Outstanding or unliquidated encumbrances at enterprise funds. Negative fund balances are
year-end are re-appropriated into the budget of referred to as a deficit.
the subsequent year.
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ENTERPRISE FUND. A fund established to
account for operations that are financed and GENERAL FUND. The fund used to account for
operated in a manner similar to private business financial resources except those funds required
enterprises, where the intent of the governing to be accounted for in another fund; the general
body is that the costs of providing goods or fund is tax supported and includes the operations
services to the general public on a continuing of most City services, i.e., police, fire, streets,
basis be financed or recovered primarily through parks and recreation, and administration.
user charges.
GENERAL OBLIGATION DEBT. Money owed
ESTIMATED BUDGET. The City's estimated on interest and principal to holders of the City's
financial plan, using mid-year estimates, general obligation bonds. The debt is supported
containing both the estimated revenues to be by revenues provided from real property that is
received during the year and the proposed assessed through the taxation power of the City.
expenditures to be incurred to achieve stated
objectives. The City uses the current year esti- GOAL. A broad, general statement of each
mate during the budget process in order to department's or division’s desired social or
determine the estimated beginning fund balances organizational outcomes.
for the next year. (Sometimes called Revised
Budget.) −H−

EXPENDITURE. The outflow of funds paid or to HOMESTEAD EXEMPTION. The exemption will
be paid for assets obtained or goods and services remove part of the home's value from taxation for
obtained regardless of when the expense is the home owner if it is their principal residence.
actually paid. An expenditure decreases fund The percentage of exemption is considered by
balance. Council on an annual basis.

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FISCAL YEAR. The time period designated by IMPACT FEE. A fee imposed by the City on new
the City signifying the beginning and ending development. Impact fees are collected for
period for the recording of financial transactions. roadway, water and sewer improvements. Impact
The City's fiscal year is October 1 through fees may only be used for capital improvements
September 30. and/or expansion to the systems for which the
impact fee originally was collected.
FRANCHISE FEES (TAXES). A fee (tax) paid by
a public utility for the use of public property in INFRASTRUCTURE. That portion of a City's
providing their services to the citizens of Keller. assets located at or below ground level, including
The fee is typically calculated as a percentage of streets, water, and sewer systems.
the utility's gross receipts.

FULL-TIME EQUIVALENT (FTE) POSITION. A
position for an employee working a 40-hour work
week for 52 weeks a year, i.e., 2,080 annual
hours (2,912 annual hours for firefighters).

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