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Section 2 Financial Analysis
Budget 101 Overview
The Debt Service Fund (Property Tax) was created to keep property tax payments
separate from all remaining debt.
The Debt Service Fund provides payments for all remaining debt being paid with transfers
from the General Fund and 4B Economic Development Corporation Fund.
5. CAPITAL PROJECT FUNDS
The Capital Projects funds are used to account for financial resources to be used for the
acquisition or construction of major capital facilities ( other than those financed by
proprietary fund types) and consist of these two funds:
The Capital Projects Fund tracks the infrastructure and building projects ( other than
those financed by proprietary fund types), funded with general operating transfers,
intergovernmental revenue, bond funds and other special funding methods. Capital
expenditures are clearly identified by their respective funding sources, and projects
are shown in a clear, concise format.
The Westlake Academy Expansion Fund (WAE) tracks the Westlake Academy Master
Facility Plan that was adopted by the Westlake Town Council/ Board of Trustees in
November 2012. An Economic Development Agreement was executed between the
Town and Maguire Partners- Solana Land, L.P. requiring the developer to pay $10,000
for each residential lot associated with the Granada subdivision. These funds are
transferred to the WAE fund for future expansion use.
PROPRIETARY FUND TYPES
The fund types are accounted and budgeted for on a
PROPRIETARY FUND TYPES
cost of services, or “ Capital Maintenance” measurement
focus using the accrual basis of accounting. ACCOUNTING/ BUDGETING
Under the accrual basis of accounting, revenues are BASIS; FULL ACCRUAL
recognized when earned and expenses are recognized 1. Cemetery Fund
when incurred. 2. Utility Fund
For purposes of this budget presentation, depreciation is 3. Utility Maintenance
not displayed and capital expenditures and bond Replacement Fund
principal payments are shown as uses of funds. 4. General Maintenance
Replacement Fund
5. Vehicle Maintenance
Proprietary fund types operate in a manner like private business Replacement Fund
utilizing an accrual basis of accounting.
The accrual basis of accounting is used by all Proprietary Fund types.
Revenues are accounted for on a flow of economic resources measurement focus. With
this measurement focus, revenue is recorded when earned and expenses are recorded
at the time liabilities are incurred.
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