Page 439 - Southlake FY23 Budget

APPEnDIx

BUDGET GLOSSARY

funded primarily through the receipt of municipal sales taxes.

Current Assets: Those assets which are available or can be made readily available to finance current operations or to
pay current liabilities.

Current Liabilities: Debt or other legal obligations arising out of transactions in the past which must be liquidated,
renewed, or refunded within one year.

D

Debt Service: The annual payment of principal and interest on the City’s indebtedness.

Deficit: The excess of the liabilities of a fund over its assets. The excess of expenditures over revenues during an
accounting period; or, in the case of proprietary funds, the excess of expense over income during an accounting
period.

Delinquent Taxes: Taxes that remain unpaid on and after the due date on which a penalty for non-payment is
attached.

Depreciation: The periodic expiration of an asset’s useful life. Depreciation is a requirement, in proprietary type
funds (such as enterprise and internal service funds).

E

Economic Development Investment Fund: The Southlake 2030 Economic Development & Tourism Strategic Plan
includes the following as recommendation 4.3: “Southlake should establish a fund to use to attract and retain
employers, as well as to help retain and expand existing businesses.” This fund was created in 2013 for that purpose.

Encumbrance: The commitment of appropriated funds to purchase an item or service.

Enterprise Fund: A type of proprietary fund containing the activities of funds where the intent is for the direct
beneficiaries to pay for all costs of the fund through fees, or where a periodic determination of revenues and
expenses is desired by management.

Effective Tax Rate: See no new revenue tax rate.

Expenditures: Where accounts are kept on the accrual or modified accrual basis of accounting, the costs of goods
received or services rendered whether cash payments have been made or not. Where accounts are kept on a cash
basis, expenditures are recognized only when the cash payments for the above purposes are made.

F

Fiscal Year: Any yearly accounting period, without regard to its relationship to a calendar year. The fiscal year for the
City of Southlake begins on October 1 and ends on September 30.

Fixed Assets: Assets of a long-term character, which are intended to continue to be held or used, such as land,
buildings, improvements other than buildings, machinery and equipment.

Franchise: A special privilege granted by a government permitting the continuing use of public property, such as city
streets, and usually involving the elements of monopoly and regulation.

438 FY 2023 City of Southlake | BUDGET BOOK
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