Adopted Budget FY 2018-2019

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