Page 173 - CityofKennedaleFY26AdoptedBudget

Fiscal Year (FY) - A 12-month period to which the Annual Budget applies. The City of Kennedale has
specified October 1 to September 30 as its fiscal year.

Franchise Fee - A fee paid by public service utilities for use of public property in providing their
services to the citizens of the community.

Full Time Equivalents (FTE) – the hours worked by one employee on a full-time basis. The concept is
used to convert the hours worked by several part-time employees in to the hours worked by full-time
employees.

Fund - An accounting entity with a self-balancing set of accounts that record financial transactions for
specific activities or government function.

Fund Accounting - A governmental accounting system, which is organized and operated on a fund basis.

Fund Balance - The excess of assets over liabilities.

Fund Type - In governmental accounting, all funds are classified into eight fund types: General, Special
Revenue, Debt Service, Capital Projects, Permanent, Enterprise, Internal Service, and Trust and Agency.
GAAP - Generally accepted accounting principles as determined through common practice or as
promulgated by the Governmental Accounting Standards Board, Financial Accounting Standards Board,
or various other accounting standard setting bodies.

GASB – (Governmental Accounting Standards Board) GASB was established in 1984 as the body
authorized to establish accounting standards for state and local government.

General Fund - The fund used to account for all financial resources except those required to be
accounted for in another fund.

General Obligation Bonds - Bonds that finance a variety of public projects, which pledge the full faith,
and credit of the City.

GFOA – Government Finance Officers Association

Goals - Broad, general statements of each division's desired social or organizational outcomes.
Governmental Funds – Applies to all funds except for the profit and loss funds (e.g., Enterprise Funds,
EDC Funds)

Grant - A contribution by a government or other organization to support a particular function. Grants
may be classified as either categorical or block depending upon the amount of discretion allowed the
grantee.
Homestead Exemption - A deduction from the total taxable assessed value of owner-occupied property.

Infrastructure - The underlying permanent foundation or basic framework.

Interest Earnings - The earnings from available funds invested during the year in U.S. Treasury Bonds,
Government agencies, Money Market Accounts, and Certificates of Deposits.

CITYOFKENNEDALE.COM/FINANCE 172