Page 73 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget
P. 73

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.









                                                             59
   68   69   70   71   72   73   74   75   76   77   78