FY 18 Annual Report

Culture & Recreation Function: The function’s objective is to promote the general well being of the City and to encourage the fullest development of cultural and educational potentials of the citizens and the community. Debt Service: The cost of paying principal and interest on borrowed money according to a predetermined payment schedule. Debt Service Function: The function’s objective is to account for all of city’s debt service regardless of department that owes the debt. Debt Service Fund: These funds account for the payment of interest and principal on the city’s general long- term debt except when authorized or required to be paid form other funds. Deficit: The excess of an entity’s liabilities over its assets or the excess of expenditures or expenses over revenues during a single accounting period. Department: The basis organizational unit of government which is functionally unique in its delivery of services. Employee (or Fringe) Benefits: Contribution made by a government to meet commitments or obligation for employee fringe benefits. Included are the government’s share of costs for Social Security, and the various pension, medical and life insurance plans. Enterprise Fund: A fund established to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of a governing body is that the cost of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges or where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Expenditure: The payment of cash on the transfer of property or services for the purpose of acquiring an asset, service or settling a loss. Fines and Forfeits: These revenues reflect receipts form the payment of penalties for law violations, non- observance contracts, and forfeited deposits. Fiscal Policy: A government’s policies with respect to revenues, spending, and debt management as these relate to government services, programs and capital investment. Fiscal policy provides an agreed-upon set of principals for the planning and programming or government budgets and their funding. Fiscal Year: A twelve-month period designated as the operating year for accounting and budgeting purposes in an organization. The City of Spencer’s fiscal year begins July 1 and ends June 30. Fixed Assets: Assets of long-term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture and other equipment. Franchise Taxes: These revenues reflect proceeds from taxes imposed on public utilities, usually involving elements of a monopoly, (e.g., electric utilities, gas utilities, cable TV) for use of public property. Full Faith and Credit: A pledge of a government’s taxing power to repay debt obligation. Function: A group of related activities performed by one or more organization units for the purpose of accomplishing a function for which the government is responsible.

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