Glossary
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GLOSSARY
Ad valorem tan - A tax levied on the assessed value (net of any
exemptions) of real or personal property. This is commonly
referred to as "property tax".
Adopted budget - The financial plan of revenues and expenditures
for a fiscal year (October 1 - September 30) as'approved by the
City Commission.
Amendment - A change to an adopted budget which may increase or
decrease a fund total.
Appropriation - A specific amount of funds authorized by the City
Commission to which financial obligations and expenditures may be
made.
Assessed value - A value established by the Property Appraiser
for sll real or personal property for use se a bases for levging
property taxes.
Bond'- A written promise to pay a sum of money on a specific date
at a specific interest rate ae detailed in a bond ordinance.
'Bond covenants - Agreement between the City and lenders which
specifies pagment schedule, terms and reserves to be held.
Budget - A financial plan for a specified period of time (fiscal
year) that balances anticipated revenues with proposed
expenditures.
Budget ad~ustnent - A revision to the adopted budget occurring
during the affected fiscal year as approved by the City
Commissioners via an amendment or a transfer.
Budget calendar - The schedule of key dates involved in the
process of adopting and executing an adopted budget.
Budget document - The official written statement of the annual
fiscal year financial plan for the City as presented bq the City
Manager.
Budget hearing - The public hearing conducted by the City
Commissioners to consider and adopt the annual budget.
Budget message - A brief written statement presented by the City
Manager to explain principal budget issues and to provide policq
recommendations to the City Commission.
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Capital Improvement Flan - A
incurred each year over a
plan sets forth each capital
beginning and ending date
expended in each year, an
expenditures.
plan for capital expenditures to be
fixed period of several years. The
project and identifies the expected
for each project, the amount to be
i the method of financing those
Capital needs - The identification of public facilities needed
within the community.
Capital outlays - Expenditures that result in the creation of or
addition to a fixed asset (500 or one year).
Capital projects -The acquisition, construction or improvement
of designated fixed assets such as land and buildings.
Cash reserves - Moneys set aside in a fund, which are
appropriated to ensure sufficient cash is available for
following fiscal year.
City Commissioners -The governing body of the City of Atlantic
Beach composed of five elected officials. The duties and
responsibilities of the Commission are established by Florida --
Statutes and the City's Code of Ordinances.
City Manager - The Chief Administrative Officer of the City ,_
appointed by the Citq Commission.
Contingency - A budgetarq reserve to provide for emergency or
unanticipated expenditures during the fiscal year. -
Coatracting out - Legal agreement wherebq a locality pays a
private business or individual to provide the public with a
service or product.
Covenant - Obligations agreed to by the issuer regarding _
repaymet,.securlty, pledges and the use of funds.
Credit ratings - An independent rating service's evaluation of
the credit worthiness of notes and bonds. Ratings influence •the
costrof borrowing. ~ -
Debt - Funds owed as a result of borrowing.
Debt service - The eapense of retiring such debt as loans and
bond issues. It includes principal and interest pagments, and _
payment for paging agents, registrars and escrow agents.
Debt service reserve - Moneys to set aside to ensure that funds
will be available in the event that pledged revenues fall short -
of expectations. -
Deficit - 'The excess of expenditures over revenues_duriag a
fiscal year.
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.. Department - A basic organizational unit of the City which is
functionally unique in its service delivery.
Depreciation - The periodic expiration of an asset's useful life.
i Depreciation is a requirement in proprietary type funds (such as
enterprise and internal service funds).
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Discretionary revenues - Revenues that are not obligated for
" particular expenditures.
~ Encuabrance - The commitment of appropriated funds to purchase
~- an item or service.
Enterprise fund - A governmental accounting fund in which the
,, services provide are financed and operated similarly to those of
a private business enterprise, i.e., to be self-supporting
... through user charges or other fees.
` Eapenditure - Decreases in fund financial resources for the
procurement of assets- or the cost of goods and(or services
received.
• Final millage -.The tax rate adopted in the final public hearing
of a taxing authority.
Fiscal year - The annual budget year for the City which runs
., from October 1 through September 30. The abbreviation used to
I designate this accounting period is FY.
Franchise agreement -Agreement between the City and a provider
of public services, such sa cable television or garbage
.• collection, which imparts certain standards on the companq and
-provides for the payment of franchise fees to the City.
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Fund - A fiscal and accounting entity with a self-balancing set
of accounts recording cash and. other financial resources,
together with ail related liabilities and residual equitie6 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.
Pund balance - The excess of fund assets over liabilities. These
unspent funds can be included as revenue in the following year's
I budget. A negative fund balance is sometimes referred to as a
deficit.
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General Fund - The governmental accounting fund supported by ad
' valorem property taxes, licenses and permits, service charges,
and other general revenues to provide county-wide. operating
j~ services. This may be referred to as the Operating Fund.
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General Obligation Bonds - A bond secured by the pledge of the
issuing jurisdiction's full faith, credit, and taxing power and
voter approved.
Grant - A contribution of assets (usually cash) by one
governmental unit or other organization to another made for a ^
specific purpose.
Impact fees - Monetary payments made by builders or developers
to defray the public cost of providing infrastructure capital to
a development.
Infrastructure - Public support structures such as roads, street
lighting and water and sewer lines.
Intergovernmental revenue - Revenue received from another
government unit for a specific purpose.
Levy - To impose taxes, special assessments or service charges.
Or, another term used for millage rate.
License and Permit fees
and approved by local
permits, mobile homes.
Line-item budget - A
separately along with
account, such as office
- A charge for specific items as required
and state regulations for example building
budget that lists each account category
the dollar amount budgeted for each
supplies, overtime or capital purchases.
Long term debt - Debt with a maturity of more than one year after
the date of issuance.
Handate - Any responsibility, action or procedure that is imposed
by one sphere of government on another through constitutional,
legislative, administrative, executive or judicial action as
direct order or that is required as a condition of aid.
Hatching requirement - A jurisdiction`s contribution to a project
or function required by a funder's sources as the basis for the
funder's contribution. Matching requirements are frequently
imposed as a proportionate share of the overall contribution.
Mill, millage - 1/1000 of one dollar, used in computing taxes by
multiplying the rate times the taxable value divided by 1000.
Example, millage rate of $3.71 per thousand; taxable value of
;50,000 ~ #50,000 divided by 1,000 ~ SO multiplied by $3.71
$185.50.
Non-departmental expenditures - Expenditures which benefit all or
several City departments, such as property and liability
insurance.
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I Object code - An account to which an expense or expenditure is
~~ recorded in order to accumulate and categorize the various types
of payments that are made by governments. Certain object codes
~ are mandated by the State of Florida Uniform Accounting System.
Operating Ezpenditures - Also known as Operating and Maintenance
~., costs, these are expenses of day-to-day operations which exclude
~ capital costa, such as office supplies, maintenance of equipment
and travel.
Other Ezpenditures - These include personal services - cost
related to compensating employees. including. salaries and wages
and fringe benefit costs.
Privatization - The government policy of allowing or contracting
with the private sector for the provision of public services.
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Property taa - Refer to definition for ad valorem tax.
Proposed millage - The tax rate certified to a property appraiser
by each taxing authority.
Real property - Land and the buildings and other structures
f attached to it that are taxable under State law.
Reserve - An account used to indicate that a portion of a fund's
.. balance is legally restricted for a specific purpose and is,
therefore, sot available for general appropriation.
Revenue - Funds that a government receives.as income. These
receipts may include tax payments, interest earnings, service
.. charges, grants and intergovernmental payments.
Revenue bonds - Bonds usuallq sold for constructing a capital
project that will produce revenue for the governmental unit
issuing the bonds. The revenue is used to pay for the principal
and interest of the bonds.
Special assessment - A compulsorq levy imposed on certain
properties to defraq part or all of .the coats of a specific
improvement or service deemed to primarily benefit those
properties.
Taz base - The total property valuation on which each taxing
authority levies it's tax rates.
Taz roll - The certificate of assessed/taxable value prepared by
the Property Appraiser and presented to the taxing suthoritq by
July 1 (or later if an extension ie granted by the State) each
year.
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Tax year - The calendar year in which ad valorem property taxes
are levied :to finance the •eading, fiscal year budget. For
example, the tax roll for the 1994 calendar year would be used to
.compute ehe'ad valorem taxes levied for the FY 1994-95 budget.
Tentative millage - The tax rate adopted in the first public
hearing of a taxing agency. Under State law, the agency may
reduce, but not increase, the tentative millage during the final
budget hearing.
Truth in Hillage Law - also known as the TRIM Bill. A 1980 law
enacted by the Florida legislature which changed the budget
process for local taxing agencies. It was designed to keep the
public informed about the taxing intentions of the various
authorities.
Uniform Accounting System - The chart of accounts prescribed by
the Office of the State Comptroller designed to standardize
financial information to facilitate comparison and evaluation of
reports.
User fees - The fees charges for direct receipt of a public
service.
Unencumbered balance - The .amount of an appropriation that is
neither eapaaded nor encumbered. It is essentially the amount of
funds still available for future needs.
Voted millage - Propertq tan levies authorized by voters within a
taxing authority, bond issues that are backed by property taxes -
are =commott 'form of voted millage.ia the State of Florida. Such
issues~a=e called General Obl3gation:.Bonda. `