Glossary5~
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~ GLOSSARY
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` Ad valorem tax - A tax levied on the assessed value (net of any
,,, exemptions) of real or personal property. This is commonly
~ referred [o 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 all real or personal property for use as a bases for levying
property taxes.
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Bond '- A written promise to pay a sum of money on a specific date
" at a specific interest rate as detailed in a bond ordinance.
Bond covenants - Agreement between the City and lenders which
~• specifies payment 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
expendit ures.
~! Budget adjustment - 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.
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; Budget document - The official written statement of the annual
fiscal year financial plan for the City as presented by the City
.- Manager.
~' Budget hearing - The public hearing conducted by the City
Commissi oners to consider and adopt the annual budget.
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`• Budget message - A brief written statement presented by the City '
Manager to explain principal budget issues and to provide policy '.
I^ recommendations to the City Commission.
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Capital Improvement Plan - 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 City Commission.
Contingency - A budgetary reserve to provide for emergency or -
unanticipated expenditures during the fiscal year.
Contracting out - Legal agreement whereby 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, security, 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
cost of borrowing.
Debt - Funds owed as a result of borrowing.
Debt service - The expense of retiring such debt as loans and
bond issues. IC includes principal and interesC payments, and
payment for paying 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 during~a~'
fiscal year.
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Department - A basic organizational unit of the City which is
~ functionally unique in its service delivery.
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Depreciation - The periodic expiration of an asset's useful life.
~•• Depreciation is a requirement in proprietary type funds (such as
enterprise and internal service funds).
,,,• Discretionary revenues - Revenues that are not obligated for
particular expenditures.
Eacumbrance - 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.
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Ezpenditure - Decreases in fund financial resources for the
• procurement of assets or the cost of goods and/or services
r 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
• designate this accounting period is FY.
• Franchise agreement -Agreement between the City and a provider
of public services, such as cable television or garbage
^' collection, which imparts certain standards on the company and
•provides for the payment of franchise fees to the City.
.- 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
r balances, and changes therein, which are segregated for the
I purpose of carrying on specific activities or attaining certain
objectives in accordance with special regulations, restrictions
or limitations.
Fund balance - The excess of fund assets over liabilities. These
unspent funds can be included as revenue in the following year's
budget. A negative fund balance is sometimes referred to as a
deficit.
.- 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 ~'
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 - A charge for specific items as required
snd approved by local and state regulations for example building
permits, mobile homes.
Line-item budget - A budget that lists each account category
separately along with the dollar amount budgeted for each
account, such as office 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
550,000 ~ 550,000 divided by 1,000 50 multiplied by 53.71 s
5185.50.
Non-departmental expenditures - Expenditures which benefit all or
several City departments, such as property 'and liability
insutance.
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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.
l Operating Eapenditures - Also known as Operating and Maintenance
costa, these are expenses of day-to-day operations which exclude
capital costs, such as office supplies, maintenance of equipment
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and travel.
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Other Eapenditures - 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.
Property tan - 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
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, not 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 usually 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 compulsory levy imposed on certain
properties to defray part or all of the costs of a specific
improvement or service deemed to primarily benefit those
(' properties.
f Taa base - The total property valuation on which each taxing
~.. authority levies it's tax rates.
Taa roll - The certificate of assessed/taxable value prepared by
.- the Property Appraiser and presented to the taxing authority by
July 1 (or later if an extension is granted by the State) each
.- year.
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Taa year - The calendar year in which ad valorem property taxes
are levied to financ^_ the ending fiscal year budget. For
example, the tax roll for the 1994 calendar year would be used to
compute the 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 Millage Law - also known as the TRIM Bill. A 1980 law
enacted by the Florida legislature which changed the budgeC
process for local taxing agencies. It was designed to keep the
public informed about the taxing intentions of the various
authorities.
IIniform 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. .
IIser fees - The fees charges for direct receipt of a public
service.
IIaencumbered balance - The amount of an appropriation that is
neither expanded nor encumbered. It is essentially the amount of
funds still available for future needs.
Voted millage - Property tax levies authorized by
taxing authority, bond issues that are backed by
are common form of voted millage in the State of
issues are called General Obligation Bonds.
voters within a
property Caxes
Florida. Such
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