A maintenance and replacement schedule based on this projection will be developed and followed. The City's fiscal year shall be the calendar year and its budget calendar shall be as provided for in Article 21 of the Charter of the City of Rye. Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general, special revenue, enterprise and internal service funds. Project-length financial plans are adopted for all capital projects.
Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrances outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. Contributed capital is recorded in proprietary funds for the cost of fixed assets transferred from the general fixed assets account group when these funds were created. Reserves represent those portions of fund equity not available for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. On or before August 7 of each year, the City Manager submits a capital program to the City Council which lists the proposed capital improvements with appropriate supporting information.