Page 174 - CityofKennedaleFY26AdoptedBudget

Intergovernmental Revenues - Revenues from other governments in the form of grants, entitlements,
shared revenues or payments in lieu of taxes.

Internal Service Funds - Funds established to finance and account for services and commodities
furnished by a designated department to other departments within a single governmental unit or to
other governmental units. Amounts expended by the fund are restored thereto, either from operating
earnings or by transfers from other funds, so that the original fund capital is kept intact.

Investments - Securities, bonds, and real property (land or buildings) held for the production of
revenues in the form of interest, dividends, rentals or lease payments. The term does not include fixed
assets used in the normal course of governmental operations.

LEOSE – Law Enforcement Officer Standards and Education Fund. This is a state treasury account that
funds training for law enforcement officers. Funds are captured from court costs and distributed to local
law enforcement agencies within Texas.

Liabilities - Debts or other legal obligations arising out of transactions in the past, which must be
liquidated, renewed or refunded at some future date.

Line Items - Expenditure classifications established to account for approved appropriations. Line Item
budgets for all departments are available upon request in the Fiscal Services Department.

Long-Term Debt - Unmatured debt of a government expected to be repaid from government funds. An
average repayment schedule is 20 years.

M&O – Maintenance and Operations
Maintenance - All materials or contract expenditures covering repair and upkeep of City buildings,
machinery and equipment, systems, and land.

Major Fund – Governmental Fund or enterprise fund reported as a separate column in the basic fund
financial statements and subject to a separate opinion in the independent auditor’s report.

Materials and Supplies - Expendable materials and operating supplies necessary to conduct
departmental activity.

Modified Accrual Accounting - A basis of accounting in which revenues are recognized in the accounting
period when they become available and measurable. Expenditures are recognized in the accounting
period in which the fund liability is incurred.

Multi Year Financial Overview - A financial overview with three years of history and five years of
projections for all operating funds is presented in July prior to City Council budget workshop in August.

NCTCOG or COG – North Central Texas Council of Governments, is a voluntary association of, by and for
local governments, established to assist local governments in planning for common needs, cooperating
for mutual benefit, and coordinating for sound regional development.

Non- Major Funds - Funds not classified as major funds that should be reported in the aggregate in a
separate column in the basic fund financial statements.

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