Page 350 - FY 2026-2027 Adopted Budget Book

identifying and developing financial policies and best practices and promoting their use through education,
training, facilitation of member networking, and leadership.

Governing Body: A board, committee, commission, or other executive or policymaking body of a municipality
or school district.

Governmental Funds: Applies to all funds except for the profit and loss funds (e.g., enterprise fund).

Grant: A contribution by a government or other organization to support a particular function.

Indirect Cost: Costs of a service not reflected in the operating budget of the entity providing the service. An
example of an indirect cost of providing water service would be the value of time spent by non-water
department employees processing water bills. A determination of these costs is necessary to analyze the total
cost of service delivery. The matter of indirect costs arises most often in the context of enterprise funds.

Infrastructure: That portion of a city's assets located at or below ground level, including the water system,
sewer system, and streets.

Inputs: A type of performance measure reporting the resources used by a department or division to produce
outputs and outcomes. Examples include: number of full time equivalents, equipment, facilities and supplies.

Interest: Compensation paid or to be paid for the use of money, including amounts payable at periodic
intervals or discounted at the time a loan is made. In the case of municipal bonds, interest payments accrue
on a day-to-day basis, but are paid every six months.

Interest and Sinking (I. & S.): The component of the ad valorem tax rate that funds General Obligation and
Certificates of Obligation debt payments.

Interest Rate: The interest payable, expressed as a percentage of the principal available for use during a
specified period of time. It is always expressed in annual terms.

Internal Service Funds: An internal service fund is a separate accounting and financial reporting mechanism
for municipal services provided by one department to other departments on a cost-reimbursement basis.

Investments: Securities and real estate held for the production of income in the form of interest, dividends,
rentals or lease payments. The term does not include capital assets used in governmental operations.

Liabilities: Debt or other legal obligations arising out of transactions in the past which must be liquidated,
renewed, or refunded at some future date. This term does not include encumbrances.

Line Item Budget: A budget that separates spending into categories, or greater detail, such as supplies,
equipment, maintenance, or salaries, as opposed to a program budget.

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

Maintenance: All materials or contract expenditures covering repair and upkeep of City Buildings, machinery,
equipment, systems, and land.

Major Fund: A fund whose revenues, expenditures/expenses, assets, or liabilities are at least 10% of the
corresponding totals for all governmental or enterprise funds and at least 5% of the aggregate amount for all
government and enterprise funds.

Maturity Date: The date that the principal of a bond becomes due and payable in full.

FY 2026-2027 Adopted Budget Book · September 15, 2026 346