Page 394 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget
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Section 12 Appendix
Glossary of Terms
of 5 years or more) due to the Expenses: Outflow of enterprise Fund: A fiscal and accounting
use of the asset. funds paid or to be paid for an entity with a self-balancing set
asset obtained or goods and of accounts recording cash
Effective Tax Rate: The rate services obtained. and other financial resources,
that would generate the same together with all related
amount of levy as the prior Fiscal Policy: The Town’ s liabilities and residual equities or
year’ s rate based on the policies with response to balances, and changes
current year’ s values. spending and debt therein, which are segregated
management as they relate to for the purpose of carrying on
EMS: Emergency Medical government services, specific activities or attaining
Services programs, and capital certain objectives in
investments. accordance with special
Encumbrances: The regulations, restrictions, or
commitment of appropriated Fiscal Year: A 12-month period limitations.
funds to purchase an item or to which the annual operating
service. budget applies and at the end Fund Accounting: A
Enterprise Fund: A fund of which a government governmental accounting
established to account for determines its financial position system that is organized and
operations that are financed and the result of its operations. operated on a fund basis.
and operated in a manner The Town of Westlake’ s fiscal
similar to private business year begins each October 1st Fund Balance: The excess of a
enterprises – where the intent of and ends the following fund' s current assets over its
the governing body is that the September 30th. current liabilities, sometimes
costs of providing goods or called working capital or fund
services to the general public Fixed Assets: Assets of a long- equity. A negative fund
on a continuing basis be term character, which are balance is often referred to as
financed or recovered primarily intended to continue to be a deficit.
through user charges. held or used, such as land,
buildings, improvements other GAAP- Generally Accepted
Excess Fund Balance: The than buildings, machinery, and Accounting Principles: Uniform
excess of a fund’ s current equipment. minimum standards and
assets over its current liabilities guidelines for financial
and required reserve limits. Franchise Fee: A fee levied by accounting and reporting.
the Town Council on businesses They govern the form and
Exempt: Personnel not eligible that use Town property or right- content of the financial
to receive overtime pay and of-way. This fee is usually statements of an entity. GAAP
who are expected to work charged as a percentage of encompass the conventions,
whatever hours are necessary gross receipts. rules and procedures necessary
to complete their job to define accepted
assignments. Full-Time Equivalent ( FTE): The accounting practice at a time.
measure of authorized They include not only broad
Expenditures: Outflow or non- personnel often referred to as guidelines of general
enterprise funds paid or to be worker- years. The full time applications, but also detailed
paid for an asset obtained or equivalent of 1 person ( 1 FTE) practices and procedures.
goods and services obtained. approximately represents 2080 GAAP provide a standard by
hours of work per year. which to measure financial
presentations.
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