Page 440 - Southlake FY23 Budget

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Budget Glossary
BUDGET GLOSSARY

FTE: Acronym which stands for Full-time Equivalent. A numerical expression which indicates the amount of time
a position has been budgeted for. A position budgeted at 40 hours per week for 12 months equals 1.0 FTE. Other
frequently budgeted levels are 20 hours per week (.5 FTE) to show a position that has been split between two funds
because the employee’s responsibilities directly affect two funds.

Fund: An accounting entity with its own self-balancing set of accounts recording cash and/or other sources of
revenues against expenditures for specific activities.

Fund Balance: The excess of an entity’s assets over its liabilities in a particular fund. A negative fund balance is
sometimes called a deficit.

G

GAAP: Stands for Generally Accepted Accounting Principles, which are accounting and reporting standards used for
both private industry and government.

GASB: Government Accounting Standards Board regulates the rules and standards for all governmental units.
General Fund: The City’s principal operating fund, which is supported by taxes, fees, and other revenues that may be
used for any lawful purpose. The fund of the City that accounts for all activity not specifically accounted for in other
funds. Includes such operations as police, fire, engineering, planning, finance and administration.

General Obligation Bonds: Bonds for which the full faith and credit of the issuing government are pledged for
payment.

General Obligation Debt Service Fund: The General Obligation Debt Service Fund is used to account for the
accumulation of financial resources for the payment of principle, interest and related costs on general long-term
debt paid primarily from taxes levied by the City. The fund balance of the General Obligation Debt Service Fund is
reserved to signify the amounts that are restricted exclusively for debt service expenditures.

H

Homestead Exemption: A partial exemption of property taxes for owners of a residence. Qualifications include
owning the house on January 1 and living in the house on January 1 of the tax year in question.

Hotel Occupancy Tax Fund: The fund used to account for the received revenue from taxes imposed on hotel guests
who pay for a room or space in a hotel. The Hotel Occupancy Tax is authorized under the Texas Tax Code, Chapter
351. The City of Southlake adopted Ordinance No. 769 in February 2000, levying a 7% (.07) tax on the cost of a room.
I
Indicator: A quantitative measure or index which may represent the degree of presence or magnitude of change in a
condition.

Interfund Transfer: Money transferred from one fund to another.

K

Key Accountability Indicator: A statement that describes in specific and measurable terms the results that the
program is expected to achieve within a certain time-frame.

BUDGET BOOK | FY 2023 City of Southlake 439
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