Page 137 - TownofWestlakeFY25BudgetOrd1005

Fiscal Year: A 12-month period to which the annual operating budget applies and at the end of which a
government determines its financial position and the result of its operations. The Town of Westlake’ s fiscal year
begins each October 1st and ends the following September 30th.

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 Fee: A fee levied by the Town Council on businesses that use Town property or right-of-way. This fee is
usually charged as a percentage of gross receipts.

Full-Time Equivalent ( FTE): The measure of authorized personnel often referred to as worker-years. The full-time
equivalent of 1 person ( 1 FTE) approximately represents 2080 hours of work per year; for firefighters, the annual
hourly equivalent is 2912 hours.

Fund: A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial
resources, together with all related liabilities and residual equities or balances, and changes therein, which are
segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with
special regulations, restrictions, or limitations.

Fund Accounting: A governmental accounting system that is organized and operated on a fund basis.

Fund Balance: The excess of a fund's current assets over its current liabilities, sometimes called working capital
or fund equity.

Generally Accepted Accounting Principles ( GAAP): Uniform minimum standards and guidelines for financial
accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP
encompass the conventions, rules and procedures necessary to define accepted accounting practice at a time.
They include not only broad guidelines of general applications but also detailed practices and procedures. GAAP
provide a standard by which to measure financial presentations.

General Fund: The fund used to account for all financial resources except those required to be accounted for in
another fund. The General Fund is tax-supported.

General Obligation Bonds (GO): Bonds sold and guaranteed by the Town, in which the full faith and credit of the
Town is pledged for repayment. Issuance requires voter approval.

Governmental Funds: The funds through which most governmental functions typically are financed. The
acquisition, use, and financial resources and the related current liabilities are accounted for through governmental
funds (General, Special Revenue, Capital Projects, and Debt Service Funds).

Goal: Generalized statements of where an organization desires to be at some future time regarding certain
operating elements (e.g. financial condition, service levels provided, etc.).

Grant: A contribution by a government or other organization to support a function. Typically, these contributions
are made to local governments from state or federal governments.

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