Page 142 - CityofBurlesonFY26Budget

Depreciation
The process of estimating and recording the lost usefulness, expired useful life or diminution of
service from a fixed asset that cannot or will not be restored by repair and will be replaced. The
cost of the fixed asset's lost usefulness is the depreciation or the estimated depreciation of value for
the operating period.

Division
A functional section of a department.

Effective Tax Rate
The rate which produces the same revenues in terms of the total amount of taxes as compared to the
prior year.

Encumbrances
Commitments in the form of purchase orders or contracts which are chargeable to an appropriation
and for which a part of the appropriation is reserved.

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 fees.

Expenditures
The outflow of funds paid or to be paid for an asset obtained or goods and services obtained,
regardless of when the expense is actually paid.

Expenses
Charges incurred (whether paid immediately or unpaid) for operation, maintenance, interest and
other charges.

Fiscal Year
The time period designated by the City signifying the beginning and ending period for recording
financial transactions. The City of Burleson's budget year is from October 1 to 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. In Burleson, an item is
capitalized as a fixed asset if it is over $5000 in value and has a useful life in excess of one year.

Franchise Tax
A charge paid for the use of City streets and public right-of-way and is in lieu of all other municipal
charges, fees, street rentals, pipe taxes or rentals, easement or others such as inspection fee, and/or
charges of every kind except only ad valorem and special assessment taxes for public
improvements (e.g., gas, telephone, cable television and banks).

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