FIN 2018-02-21 Item 2B - Discussion - Financial Definitions

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2017 - 2018 Biennial Budget City of Tukwila, Washington DELINQUENT TAXES. Taxes remaining unpaid on and after the date to which a penalty for nonpayment is attached. Even though the penalty may be subsequently waived and a portion of the taxes may be abated or canceled, the unpaid balances continue to be deinquent taxes until aboted, canms|ed, paid or converted into tax liens. EXPENDITURES. Decreases in net financial resources. Expenditures include current operating expenses requiring the present or future use of net current assets, debt service and capital outlays, and intergovernmental grants, entitlement and shared revenues. FISCAL YEAR. A 12 -month period to which the annual operatingbudget applies and at the end of which a government determines its financial position and the results of its operations. FIXED ASSETS. Long-lived tangible assets obtained or controlled as a result of past transactions, events or circumstances. Fixed assets include bui|dingo, aquipnnerd, improvements other than buildings and land. See also Capital Assets. FULL-TIME EQUIVALENT (FTE). An employment indicator that translates the total number of hours worked in a year by all ernp|oyeas, including part-time vvorkera, to an equivalent number of work years. For example, one FTE equals 2.O8Ohours and .75FTE equals 1.5OOhours. FUND. A fiscal and accounting entity with a self -balancing set of accounts in which cash and other financial resourcan, and related liabilities and residual equUMes, or balances, and changes therein, are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regu|at|onn, restrictions or limitations. FUND BALANCE. The difference between assets and Iiabilities reported in a governmental fund. Fund balances are either designated to a particular purpose or undesignated as to the remaining un- appropriated balance of the fund after accounting for the designated funds. GENERAL FUND. The fund used to account for all financial reoourceo, except those required to be accounted for in another fund. GENERAL LONG TERM DEBT. Long term debt expected to be repaid from governmental funds. GENERAL OBLIGATION BONDS. Bonds that are secured by the Iocal government's full faith and credit to use legally available resourneo, including tax revenues to repay bond holders. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). Uniform minimum standards and guidelines for financial accounting and reporting. The primary authoritative body on the application of GAAP to state and local governments is the Government Accounting Standards Board. GOVERNMENTAL FUNDS. Funds generally used to account for tax supported activities. There are five different types of governmental funde, of which the city uses four of these. The general fund, is the main operating fund of the city. The special revenue funds, are used to account for proceeds from specific sources to be used for legaily restricted purpooas, but normally not for mjor capital projects. The debt service funda, which are for the accumulation of resources to pay principle and interest on the City's general long term debt. The capital project funds, which are used for the acquisition or construction of major capital facilities. LEGAL LEVEL OF BUDGETARY CONTROL. The level at which spending in excess of b 405 13