Page 349 - FY 2026-2027 Adopted Budget Book

Fixed Costs: Costs that are legally or contractually mandated, such as retirement, FICA/Social Security,
insurance, debt service costs, or interest on loans.

Full-time equivalent (FTE): A unit that represents the workload of an employee's regular straight-time hours.
For the purposes of our personnel summary, 2,080 hours is equal to one (1) FTE for all divisions except for
Emergency Operations in the Fire Department, in which 2,730 hours is equal to one (1) FTE.

Fund: An accounting entity with a self-balancing set of accounts that are segregated for the purpose of
carrying on identified activities or attaining certain objectives in accordance with specific regulations,
restrictions, or limitations.

Fund Accounting: Organizing financial records into multiple, segregated locations for money. A fund is a
distinct entity within the municipal government in which financial resources and activity (assets, liabilities, fund
balances, revenues, and expenditures) are accounted for independently in accordance with specific
regulations, restrictions or limitations. Examples of funds include the general fund and enterprise funds.
Communities whose accounting records are organized according to the Uniform Municipal Accounting System
(UMAS) use multiple funds.

Fund Balance: The difference between a governmental fund’s assets and liabilities, divided into 5 categories:
1) Non-spendable, 2) Restricted, 3) Committed, 4) Assigned, 5) Unassigned. Portions of the fund balance may
be reserved for various purposes such as contingencies or encumbrances at the end of the fiscal year.

Fund Type: In governmental accounting, all funds are classified into eight fund types: General, Special
Revenue, Debt Service, Capital Projects, Special Assessment, Enterprise, Internal Service, and Trust and
Agency.

GASB: The Governmental Accounting Standards Board. The GASB establishes accounting and financial
reporting standards for U.S. state and local governments that follow generally accepted accounting principals
(GAAP).

GASB 34: A major pronouncement of the Governmental Accounting Standards Board that establishes new
criteria on the form and content of governmental financial statements. GASB 34 requires a report on overall
financial health, not just on individual funds. It requires more complete information on the cost of delivering
value estimates on public infrastructure assets, such as bridges, road, sewers, etc. It also requires the
presentation of a narrative statement on the government's financial performance, trends and prospects for the
future.

GASB 45: This is another Governmental Accounting Standards Board major pronouncement that each public
entity account for and report other post employment benefits in its accounting statements. Through actuarial
analysis, municipalities must identify the true costs of the OPEB earned by employees over their estimated
years of actual service.

General Fund: The fund used to account for all financial resources except those required to be accounted for
in another fund. The General Fund is tax supported and includes most of the basic operating services, i.e.,
police, fire, streets, parks and recreation, and administration.

General Obligation Bonds: Bonds issued by a municipality for purposes allowed by statute that are backed
by the full faith and credit of its taxing authority.

Generally Accepted Accounting Principles (G.A.A.P.): Detailed accounting standards and practices for
state and local governments as prescribed by the Governmental Accounting Standards Board (GASB).

GFOA: The Government Finance Officers Association of the United States and Canada. The mission of the
GFOA is to enhance and promote the professional management of governments for the public benefit by

FY 2026-2027 Adopted Budget Book · September 15, 2026 345