Page 172 - CityofKennedaleFY26AdoptedBudget

Capital Outlays - Expenditures which result in the acquisition of or addition to, the fixed assets.

CDBG – Community Development Block Grant.
Certificates of Obligation - Tax supported bonds that are similar to general obligation bonds and can be
issued after meeting strict publication requirements and with final approval by the City Council.

Home Rule Charter - The document of a home rule City similar to a constitution, which establishes the
City's government structure and provides for the distribution of powers and duties among the various
branches of government.

City Council - The Mayor and five (5) Council members collectively acting as the legislative and policy
making body of the City.

Community Development Block Grant (CDBG) - A type of federal grant to improve infrastructure in
specified portions of the community.

Current Taxes - Taxes levied and due within one year.

Debt Service Fund - A fund established to account for the accumulation of resources for, and the
payment of, long-term debt principal and interest.

Department - A major administrative organizational unit of the City, which indicates overall
management responsibility for one or more divisions.

Depreciation - A means of allocating a portion of a fixed asset's cost to each period that the asset helps
generate revenue.

Distinguished Budget Presentation Program - A voluntary program administered by the Government
Finance Officers Association to encourage governments to publish efficiently organized and easily
readable budget documents and to provide peer recognition and technical assistance to the fiscal
officers preparing them.

EDC – Approved by voters in 1996, the Kennedale Economic Development Corporation was created to
undertake projects authorized by Section 4B of the Development Corporation Act of 1979. For financial
reporting purposes, this entity is a discretely presented component unit of the City of Kennedale.

Encumbrance - The commitment of appropriated funds to purchase an item or service. To encumber
funds means to set aside or commit funds for a future expenditure.

Enterprise Fund - A fund established to account for operations of the water and sewer system. It is
operated in a manner similar to private business enterprises where the intent is cost recovery.
Estimated - The amount of projected revenues or expenditures to be collected during the fiscal year.

Expenditures/Expenses - A decrease in the net financial resources of the City due to the acquisition of
goods and services.

Financial Policies - Financial policies are used to enable the City to achieve a sound financial position.
They are in writing and are updated and endorsed on an annual basis.

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