Page 275 - Saginaw FY20 Annual Budget

DEFICIT: (1) The excess of the liabilities of a fund over its assets. (2) The excess of expenditures over
revenues during an accounting period; or, in the case of enterprise funds, the excess of expense over
income during an accounting period.

DELINQUENT TAXES: Taxes that remain unpaid on or after the date on which a penalty for non-
payment is attached.

DEPARTMENT: A major administrative organizational unit of the City that indicates overall management
responsibility for one or more activities.

DEPOSITORY BANK: Banking institution that handles the day to day operational cash flow (daily
deposits, payroll checks, and accounts payable checks). The City’s current depository bank is Frost.

DEPOSITORY CASH ACCOUNT: This consists of all deposits made to the City of Saginaw. This
includes daily deposits, transfers from TexPool, and direct deposits. All funds are accounted for and earn
interest.

DEPRECIATION: Expiration in the service life of capital assets attributable to wear and tear,
deterioration, action of the physical elements, inadequacy or obsolescence. That portion of the cost of a
capital asset that is charged as an expense during a particular period.

DIRECT DEPOSIT: Deposits that are made directly from one bank to another. The use of direct deposit
causes no mail delay. We utilize direct deposits from the State on our Sales Tax collections and Mixed
Beverage Tax as well as Property Tax payments made through Tarrant County.

DISBURSEMENT: Payment for goods and services in cash or by check.

DISTRIBUTION SYSTEM: A system comprised of smaller water lines which distribute water from the
transmission system to the customers.

DONATIONS FUND: The Donations Fund was created in May 2009 to better track funds received
through water bill donations as well as direct donations to the City for specific purposes. Currently, Animal
Control, Parks, Library, Beautification, Senior Citizen, Police, and Fire have donation funds available for
expenditure.

EFFECTIVE TAX RATE: The rate that produces the same revenues in terms of the total amount of taxes
as compared to the prior year.

ELEVATED STORAGE: Water storage tanks that are raised above the ground and connected to the
transmission system to help maintain the system pressure. Excess water pumped flows into these tanks,
or if pumping does not meet customer demand, water drains from the tanks to supplement the pumping.

EMERGENCY OPERATION CENTER (EOC): An area specifically designed to manage a major incident.
It will serve as the command center and be equipped with disaster supplies, computers, maps, CodeRED
system, weather siren network, etc.

ENCUMBRANCE: The commitment of appropriated funds to purchase an item or service. To encumber
funds means to set aside or commit funds for a specified future expenditure.

ENTERPRISE DEBT: Debt that is to be retired primarily from earnings of publicly owned and operated
enterprises.

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