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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.

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.

Cash Flow: The movement of money into or out of an organization, showing its liquidity and ability to meet {nancial
obligations.

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

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

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

Compliance: Adherence to relevant laws, regulations, and internal policies governing {nancial repor ting and operations.

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

Cost-Bene{t Analysis: A decision-making tool that allows a comparison of options based on the level of bene{t derived
and the cost to achieve the bene{t from different alternatives.

Debt Burden: The amount of debt carried by an issuer usually expressed as a measure of value (i.e., debt as a percentage
of assessed value, debt per capita, etc .). Sometimes debt burden refers to debt ser vice costs as a percentage of the total
annual budget .

Debt Ser vice: The repayment cost , usually stated in annual terms and based on an amor tization schedule, of the principal
and interest on any par ticular bond issue.

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 ser vice
from a {xed asset . Depreciation is recognized in enterprise and internal ser vice funds.

Encumbrance: A reser vation of funds to cover obligations arising from purchase orders, contracts, or salary commitments
that are chargeable to, but not yet paid from, a speci{c appropriation account .

Enterprise Funds: An enterprise fund is a separate accounting and {nancial repor ting mechanism for municipal ser vices
for which a fee is charged in exchange for goods or ser vices. It allows a community to demonstrate to the public the
por tion of total costs of a ser vice that is recovered through user charges and the por tion that is subsidized by the tax levy,
if any. With an enterprise fund, all costs of ser vice delivery — direct , indirect , and capital costs — are identi{ed. This allows
the community to recover total ser vice costs through user fees if it chooses. Enterprise accounting also enables
communities to reser ve the "surplus" or net assets unrestricted and generated by the operation of the enterprise rather
than closing it out to the general fund at year- end. Ser vices that may be treated as enterprises include, but are not limited
to, water, sewer, hospital, and airpor t ser vices.

Exemptions: A discharge, established by statute, from the obligation to pay all or a por tion of a proper ty tax. The
exemption is available to par ticular categories of proper ty or persons upon the timely submission and approval of an
application to the assessors. Proper ties exempt from taxation include hospitals, schools, houses of worship, and cultural

FY 2025-2026 Annual Budget | Colleyville Page 190