But, like you, the Council can only do these things with General Fund, discretionary dollars.Ī third concept commonly used to describe funding sources is closely related to the concept of discretionary versus non-discretionary funding. Similarly, the City Council may have ongoing programs such as police or parks programs that it wishes to fund or special one-time purchases it wishes to make.
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For instance, if you have money automatically withdrawn to pay your mortgage or certain other bills, or funds automatically withdrawn and deposited to a savings account, those funds could be called non-discretionary, or dedicated funds. Some funds in your checking account may be non-discretionary. Going further, let’s look at an analogy for understanding the difference between discretionary and non-discretionary funds within your personal general fund – your own checkbook.Your net paycheck, on the other hand, represents your own personal general fund, which is largely at your discretion to spend. Those deductions represent your non-discretionary dollars they are dedicated and unavailable for you to use now as you please but they are still part of your gross revenue.
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Taxes, social security, workers compensation, and possibly medical premiums are all deducted from your total revenue and directed elsewhere. However, your actual paycheck amount is somewhat less. There you will see a total for your gross earnings, or your revenue. To understand the difference between general and non-general funds, take a look at the stub of your paycheck.