Page 351 - FY 2026-2027 Adopted Budget Book

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.

Municipal(s): (As used in the bond trade) “Municipal” refers to any state or subordinate governmental unit.
“Municipals” (i.e., municipal bonds) include not only the bonds of all political subdivisions, such as cities,
towns, school districts, special districts, counties but also bonds of the state and agencies of the state.

Net Assets: Assets in excess of a fund's liabilities that are restricted, invested in capital assets, net of related
debt and/or unrestricted.

Net Position: The difference between assets and deferred outflows, and liabilities and deferred inflows. The
Net Position is reported in financial statements as restricted if there are limitations imposed on its use. The
Water and Sewer fund balance is presented using the unrestricted net position calculation.

Note: A short-term loan, typically with a maturity date of a year or less.

Objects of Expenditures: A classification of expenditures that is used for coding any department
disbursement, such as “personal services,” “expenses,” or “capital outlay.”

Official Statement: A document prepared for potential investors that contains information about a prospective
bond or note issue and the issuer. The official statement is typically published with the notice of sale. It is
sometimes called an offering circular or prospectus.

Old Bedford School (O.B.S.): The Old Bedford School is a restored building built in 1915. It was Bedford's
first brick schoolhouse. The Old Bedford School is a division in Community Services and is funded out of the
Tourism Fund.

Operating and Maintenance (O. & M.): The component of the ad valorem tax rate that funds day-to-day
operating expenses.

Operating Budget: Plans of current expenditures and the proposed means of financing them. The annual
operating budget is the primary means by which most of the financing, acquisition, spending, and services
delivery activities of the City are controlled. State Law requires the use of annual operating budgets.

Outcomes: A type of performance measure which addresses strategic results and gauges the effectiveness of
services or programs, shows the extent to which goals, outcomes or objectives have been achieved and/or
what has changed or been accomplished as a result of the service.

Outputs: A type of performance measure reporting the number of units provided, the amount of services
provided, or the number of people served by a department or division.

Overlapping Debt: A community's proportionate share of the debt incurred by an overlapping government
entity, such as a regional school district, regional transit authority, etc.

Performance Measures: Specific quantitative measures of work performed within an activity or program.
They may also measure results obtained through an activity or program.

Personnel Services: The costs associated with compensating employees for their labor, including salaries
and fringe benefits.

Principal: The face amount of a bond, exclusive of accrued interest.

FY 2026-2027 Adopted Budget Book · September 15, 2026 347