The money collected by the town from taxes, grants, fees and many other sources to pay for this plan is called revenue. The money spent on salaries, materials and equipment to provide planned services and facilities is called expenditures. Fund Balance is the difference between assets and liabilities in governmental funds. In the State of Colorado, budgeted expenditures cannot exceed the amount of funds that the Town has available in revenues and fund balance per CRS § 29-1-103.
In Frederick, the budget document is produced and adopted annually. The process begins in the spring with the preliminary budget being presented to the Board no later than October 15th of each year. The budget must be adopted by the Board no later than December 15th of each year. Once the budget has been adopted, a certified copy is sent to the State of Colorado for review and acceptance.
The Town of Frederick utilizes fund accounting for both budgeting and accounting purposes. Each fund is established for a specific purpose and is considered a separate accounting entity. The Board must approve or appropriate any expenditure from the various funds, including expenditures from reserves. The authorization is generally done prior to the beginning of each fiscal year, but can be done by the Town Board anytime during the year if funds are available. In government, appropriate or appropriation is used instead of authorize or authorization.
Town Fund Types
- General Fund - The General Fund is the general operating fund of the Town. It is used to account for all resources except those required to be accounted for in another fund.
- Special Revenue Funds - Special Revenue Funds account for specific revenue sources that are legally restricted for specific purposes. The Town’s Special Revenue Funds include: Street and Alley Fund, Conservation Trust Fund, Parks Fund, Open Space Fund, Events Fund, Art in Public Places Fund, and Historic Preservation Fund.
- Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, bond principal and interest from governmental resources. At this time the Town has no debt service funds.
- Capital Project Funds – Capital Project Funds are created to account for resources used for the acquisition and construction of capital facilities by the Town of Frederick. The Town’s Capital Project Funds include the Capital Facilities Fund.
- Enterprise Funds - Enterprise Funds account for the Town’s ongoing activities which are similar to those found in the private sector, and financial activity is reported in essentially the same manner as in commercial accounting where net income and capital maintenance are measured. The Town has the following Enterprise Funds: Water Fund, Storm Water Fund, and Electric Fund.
- Internal Service Funds - Internal Service Funds are established to account for the financing of claims and judgments for all the Town’s Internal Service Funds. At this time the Town has no internal service funds.
- Trust and Agency Funds - Trust and Agency Funds are used to account for assets held by the Town in a trustee capacity or as an agent. The Town has the Oil Royalty fund that is considered a Fiduciary fund.
The Town Board must give approval to each separate budget. Each is included in the town’s overall (total) budget plan.Current Budget