Page 136 - TownofWestlakeFY25BudgetOrd1005

Contractual Services: The costs related to services performed for the Town by individuals, businesses, or utilities.

Cost: The amount of money or other consideration exchanged for property or services. Cost may be incurred
before money is paid; that is, as soon as liability is incurred.

Council: The Mayor and five council members collectively acting as the legislative and policymaking body of the
Town. Additionally, the Council serves as the Board of Trustees for Westlake Academy.

Current Assets: Those assets which are available or can be made readily available to finance current operations
or to pay current liabilities. Those assets which will be used up or converted into cash within one year. Some
examples are cash, temporary investments, and accounts receivable collected within one year.

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

Debt Service Fund: A fund used to account for the moneys set aside for the payment of interest and principal to
holders of the Town's general obligation and revenue bonds, the sale of which finances long-term capital
improvements, such as facilities, streets and drainage, parks, and water/ wastewater systems.

Deficit: 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.

Department: A major administrative division of the Town that indicates overall management responsibility for an
operation or a group of related operations within a functional area.

Depreciation: Change in the value of assets (equipment, buildings, etc. with a useful life of 5 years or more) due
to the use of the asset.

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

Enterprise Fund: A fund established to account for operations that are financed and operated in a manner similar
to private business enterprises – where the intent of the governing body is that the costs of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through user charges.

Excess Fund Balance: The excess of a fund’s current assets over its current liabilities and required reserve limits.

Exempt: Personnel not eligible to receive overtime pay and who are expected to work whatever hours are
necessary to complete their job assignments.

Expenditures: Outflow or non-enterprise funds paid or to be paid for an asset obtained or goods and services
obtained.

Expenses: Outflow of enterprise funds paid or to be paid for an asset obtained or goods and services obtained.

Fiscal Policy: The Town’s policies with response to spending and debt management as they relate to government
services, programs, and capital investments.

96