Page 384 - Budget Book FY2020-2021
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B U D G E T G L O S S A R Y
delinquent if unpaid by January 31.)
Franchise Fee A fee paid by public service
Department A functional and administrative utilities for use of public property in providing
entity created to carry out specified public their services to the citizens of the community.
services.
Function Classification of expenditures
Distinguished Budget A voluntary program according to the principal purposes for which
administered by the Government Finance the expenditures are made.
Officers.
Fund An accounting entity which a self-
Presentation Program Association to balancing set of accounts that record financial
encourage governments to publish efficiently transactions for specific activities or
organized and easily readable budget government function.
documents and to provide peer recognition
and technical assistance to the fiscal officers Fund Balance A term used to express the
preparing them. equity (assets minus liabilities) of governmental
funds and trust funds.
Encumbrance The commitment of
appropriated funds to purchase an item or Generally Accepted Uniform minimum
service. To encumber funds means to set aside standards/guidelines for financial accounting
or commit funds for a future expenditure. and reporting which provide a standard by
which to measure financial presentations.
Estimated Revenue The amount of They govern the form and content of the basic
projected revenues to be collected during the financial statements of an entity.
fiscal year.
General Obligation Bonds Bonds that
Expenditures Decrease in net financial finance a variety of public projects, which
resources for the purpose of acquiring an asset, pledge the full faith and credit of the City.
service, or settling a loss.
Intergovernmental Revenue Revenue
Expenses Decrease in net total assets. Charges collected by one government and distributed to
incurred, whether paid or unpaid, for another level of government(s).
operation, maintenance, interest, and other
charges, which are presumed to benefit the Inter-Fund Transfers Legally authorized
current fiscal period. transfers from a fund receiving revenue to the
fund through which the resources are to be
Fiscal Year The twelve month financial expended; i.e. transfers from the General Fund
period to which the annual operating budget to Special Revenue Fund or Capital Projects
applies. The fiscal year used by the City of Fund.
McAllen begins October 1st and ends
September 30th. Maintenance All materials or contract
Fixed Assets Long term assets, which are expenditures covering repair and upkeep of
intended to continue to be held or used, such City Buildings, machinery and equipment,
as land, building, machinery, or equipment. systems, and land.
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