Page 425 - City of Westlake FY20 Budget
P. 425

Section 12 Appendix
                                                                                        Glossary of Terms


          •  Budget Calendar: Schedule of key   •  Contractual Services: The costs   •  Department: A major administrative
            dates which the Town follows in the   related to services performed for the   division of the Town that indicates
            preparation and adoption of the     Town by individuals, businesses, or   overall management responsibility for
            budget.                             utilities.                          an operation or a group of related
                                                                                    operations within a functional area.
          •  Budget Document: Instrument used   •  Cost: The amount of money or other
            by the budget-making authority to   consideration exchanged for property   •  Depreciation: Change in the value of
            present a comprehensive financial   or services. Cost may be incurred   assets (equipment, buildings, etc.
            plan of operations to the Town      before money is paid; that is, as soon   with a useful life of 5 years or more)
            Council.                            as liability is incurred.           due to the use of the asset.

          •  Budgetary Control: The control or   •  Council:  The Mayor and five council   •  Effective Tax Rate:  The rate that
            management of the organization in   members collectively acting as the   would generate the same amount of
            accordance with an approved budget   legislative and policymaking body of   levy as the prior year’s rate based on
            for keeping expenditures within the   the town                          the current year’s values.
            limitations of available appropriations
            and revenues.                     •  Current Assets: Those assets which   •  EMS: Emergency Medical Services
                                                are available or can be made readily
          •  Capital Expenditures: Any major non-  available to finance current   •  Encumbrances: The commitment of
            recurring expenditure or expenditure   operations or to pay current     appropriated funds to purchase an
            for facilities, including additions or   liabilities. Those assets which will be   item or service.
            major alterations, construction of   used up or converted into cash within
            highways or utility lines, fixed    one year. Some examples are cash,   •  Enterprise Fund: A fund established
            equipment, landscaping or similar   temporary investments, and accounts   to account for operations that are
            expenditures.                       receivable collected within one year.   financed and operated in a manner
                                                                                    similar to private business enterprises
          •  Cash Basis:  A basis of accounting   •  Current Liabilities: Debt or other   – where the intent of the governing
            under which transactions are        legal obligation arising out of     body is that the costs of providing
            recognized when cash changes hand   transactions in the past which must   goods or services to the general
                                                be liquidated, renewed, or refunded   public on a continuing basis be
          •  Certificates of Obligations (CO’s):   within one year.                 financed or recovered primarily
            Similar to general obligation bonds                                     through user charges.
            except certificates require no voter   •  Debt Service Fund: A fund used to
            approval.                           account for the moneys set aside for   •  Excess Fund Balance: The excess of a
                                                the payment of interest and principal   fund’s current assets over its current
          •  Comprehensive Annual Financial     to holders of the Town's general    liabilities and required reserve limits.
            Report (CAFR):  This report         obligation and revenue bonds, the
            summarizes financial data for the   sale of which finances long-term   •  Exempt: Personnel not eligible to
            previous fiscal year in a standardized   capital improvements, such as   receive overtime pay and who are
            format.                             facilities, streets and drainage, parks   expected to work whatever hours are
                                                and water/wastewater systems.       necessary to complete their job
          •  Contingency: A budgetary reserve set                                   assignments.
            aside for emergencies or unforeseen   •  Deficit:  The excess of expenditures
            expenditures not otherwise          over revenues during an accounting   •  Expenditures: Outflow or non-
            budgeted.                           period; or, in the case of proprietary   enterprise funds paid or to be paid
                                                funds, the excess of expense over   for an asset obtained or goods and
                                                income during an accounting period.   services obtained.




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