Financial Highlights Financial GLOSSARY OF TERMS

Capital Assets

Capital assets represent a significant portion of the city’s financial position used to deliver services and community needs.

Major Capital Asset Additions

Assigned funds: Amounts set aside by the city for specific purposes that are not restricted or committed.

Committed fund balance: Amounts that can only be used for a specific purpose by formal action from City Council.

Dedicated funds: Amounts set aside for a specific purpose.

Deferred outflows of resources: Amounts pending recognition as expenses in future periods.

Deferred inflows of resources: Amounts pending recognition as revenues in future periods.

Franchise fees: Charges to utility companies for the use of public rights-of-way.

General fund: The main operating fund for the city.

Intergovernmental: Revenue recognized from grant awards and reimbursement of operating costs by other funds.

Net investment in capital assets: Capital assets, net of accumulated depreciation, reduced by outstanding capital related debt.

Net position: The net position of the city is equal to city assets and deferred outflows reduced by liabilities and deferred inflows.

Nonspendable funds: Fund balance representing assets not in a spendable form (i.e., inventory).

Debt

Long-term debt represents borrowings used to finance the construction and purchase of capital assets used by the city. In FY22, the city issued $165.8 Million in new debt to fund a variety of planned capital projects ranging from building and park facility improvements and renovations to water main replacements and drainage improvements. The city also issued $167 Million in pension obligation bonds to pay for a portion of the unfunded liability on retirement plans.

Aaa/AAA are the highest ratings assigned to an issuer's bonds by the major credit-rating agencies. The city's strong credit worthiness allows Irving to borrow at reduced interest rates and reduced overall cost.

Reserves: Amounts of fund balance that are not available for appropriation or are set aside for a specific future use.

Restricted fund balance: Amounts that can only be used for a specific purpose set by external entities.

Restricted net position: Restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unassigned fund balance: Remaining amount that has not been assigned to other funds or been restricted, committed or assigned to specific purposes.

Unrestricted net position: Remaining net position not included in net investment in capital assets or restricted net position.