Page 425 - City of Westlake FY20 Budget

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.

413