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HomeMy WebLinkAboutexhibit6APPENDIX 6A - GLOSSARY OF TERMS • Account Code Part of a numbering system designating accounts in such a manner that the symbol used quickly reveals certain required information. Accrual Basis Recording the financial effects for transactions and other events and circumstances that have cash consequence for the government in the periods in which those transactions, events and circumstance occur, rather than in the period in which cash is received or paid by the government. Ad Valorem Taxes A tax levied on the assessed value of real property (also known as "property taxes"). Allocation The expenditure amount planned for a particular project or service which requires legislative action before expenditures may be authorized. Anti -Deficiency Act A 1998 amendment to the City Code containing regulations to ensure that departments and department directors do not obligate or spend funds in excess of what was approved in the adopted budget. Appropriation A legal authorization approved by the City Commission to make expenditures and incur obligations for specific purposes. Assessed Valuation A value set upon land, buildings, business inventory and equipment as determined annually by the County Property Appraiser in accordance with State Law and used as a basis for levying taxes. Balanced Budget A budget in which estimated revenues equal estimated expenses Bond A written promise to pay a specific sum of money at a specified date or dates in the future, together with the periodic interest at a specified rate. Budget A financial plan of programs, services, and construction projects that estimates anticipated revenue and projected expenses within a specific period of time (usually 12 months). Budget Amendment A formal City Commission action to adjust the adopted budget. These amendments take two forms: Transfer of an appropriation from one departmental budget to another; or, the appropriation of new sources of revenue Budget Message The opening section of the budget which provides a general summary of the most important aspects of the budget, changes from the current and previous fiscal years, and the views and recommendations of the City Manager. Budget Monitoring The evaluation of a governmental unit or fund in accordance with an approved budget for the purpose of keeping expenditures within the limits of available appropriations and available revenues. Capital Equipment Equipment with a value in excess of $500.00 and an expected life of more than one year such as automobiles, typewriters 1 APPENDIX 6A - GLOSSARY OF TERMS and office furniture. Capital Improvement Budget A plan of proposed capital outlays and the means of financing, including those approved capital projects contained in the six -year Capital Im2rovement Program. Capital Improvement Program (CIP) Annual appropriations in the City's budget for capital purposes such as street improvements, building construction, and some kinds of facility maintenance which are supported by a six -year expenditure plan. This plan details fund sources and expenditure amounts that these large projects will require beyond the one-year period of the annual budget. Capital Outlay An expenditure category for acquiring equipment, vehicles or machinery that become additions to the City's fixed assets. Community Development Block Grant A U.S. Department of Housing and Urban Development grant to support economic development projects and social services for designated low-income areas. Current Taxes Tax that are levied and due within one year DR-420 A form entitled "Certification of Taxable Value" that the City submits annually to the State containing specific details about the proposed millage rate and certifying compliance with the provisions of the Florida statutes related to millage. Debt Service Requirement The amount of money required to pay the principal and interest of all bonds and other debt instruments according to a pre -determined payment schedule. Delinquent Taxes Taxes that remain unpaid on and after the date on which a penalty for nonpayment is attached. Department A major administrative unit of the City with overall management responsibility for a service or an operation or for a group of related operations. Depreciation (1)The expiration in service life of fixed assets due to use and the passage of time (2) The portion of the cost of fixed assets charged as an expense during a particular period. Disbursement Payment for goods and services Division The second level in the formal City organization in which specific function is carried out. Several divisions may comprise a single department. Encumbrances An estimated amount of committed funds to purchase a. designated item or service or to cover specific contracts that are in the process of being completed. Estimated Revenue The amount of projected income to be collected during the fiscal year. The revenue estimate is submitted to the City Commission for approval 2 • APPENDIX 6A - GLOSSARY OF TERMS Exemption A portion of the total property valuation not subject to property taxes. An example is Homestead Exemption Expenditures Expenses Expenses Revenue used for the operation, maintenance, interest cost, and other charges for activities that constitute the City's ongoing operations. Fiscal Year The time period designated as the beginning and ending period for recording financial transactions. Miami selected October 1 to September 30 as its fiscal year. Fixed Assets Long —term tangible assets such as land, buildings, machinery, furniture and other equipment. Fund An accounting entity containing a set of self -balancing accounts to record all financial transactions for specific activities or government functions. Six commonly used funds in public accounting are: general fund, special revenue funds, debt service funds, capital projects funds, trust and agency funds, and internal service funds. Fund Balance The difference between fund assets and fund liabilities General Fund A central fund used to account for most of the City's financial resources and which supports many of the operations of city government. General Obligation Bonds Bonds that finance a variety of public projects such as streets, buildings, and improvements. These bonds are backed by the full faith and credit of the issuing government. The repayment of these bonds is usually made from t he General Fund. Grant A financial contribution made by a governmental unit, a foundation, or a corporation. Such contributions are usually made for specified purposes Indirect Cost Reimbursement Those elements of costs necessary to produce a product or service but not directly traceable to the product or service. Payments are made to the City by grant -funded programs to cover City administrative overhead costs. In Miami, a cost allocation plan is developed to recoup General Fund costs from grants and other sources. Inter -Department Transfer Payment from one City department to another, generally for equipment or for services rendered. An example is the cost to repair City -owned cars. This cost is transferred from the central department that does the repairs to the individual departments that actually use the cars. Interfund Transfers Amounts transferred from one fund to another Levy To impose taxes, special assessments, or service charges for City activities. Line -item Budget A budget that lists each expenditure category (salary, materials, telephone service, travel, etc.) separately, along with the dollar amount budgeted for each category. 3 • APPENDIX 6A - GLOSSARY OF TERMS Local Government Y2 Cents Sales Tax The value of cent of the States sales tax, which is returned to the City on the basis of population. Local Option Gas Tax A tax levy of up to six cents on each gallon of motor and special fuels sold, which can be imposed by Dade County in accordance with State law, and which is shared with the cities in the county. Long Term Debt Debt with a maturity of more than one year after the date of issuance. Maintenance of Current Level of Service The resources required to provide the same level of service as provided during the prior year. The estimate takes into account increases in the cost of providing services. Millage Rate One mill equals $1.00 of tax for each $1,000 or property value. The millage rate is the total number of mills of tax assessed against this value. Nonrevenues Monies received by the City which are not additions to assets of the City as a whole although they may be to the receiving agency. Object Code An expenditure category such as Personnel Services, Operating Expenses and Capital Outlay. Objective Specific measurable action that will be taken to achieve a goal Operating Budget A balanced financial plan for providing governmental programs and services for a single year. Operating Expenses Proprietary fund expenses related directly to the fund's primary activates. Operating Fund A fund restricted to a fiscal budget year. Performance Indicator A measure used to identify departmental achievements in numerical or statistical terms. Personnel Services An expenditure category that includes employee costs such as salary, wages, shift differential, holiday pay, etc, Projections Estimates of anticipated revenues, expenditures, or other budget amounts for specific time periods, usually fiscal years. Property Tax Levy The value derived by multiplying the property tax millage rate by the new taxable assessed value of property in t he City. Property Taxes Taxes paid on the assessed or "just" value of land, building, business inventory or equipment. Proprietary Agency Commonly called"self-supporting" or "enterprise," these agencies pay for all or most of their cost of operations from user fees. These agencies receive title or no general tax support. Reconciliation A detailed summary of increases and decreases in departmental expenditures from one budget year to another. Revenue Funds received as income. In includes such items as tax payments, fees for specific services, receipts from other governments, franchise fees, fines, forfeitures, grants, shared revenues and interest income. 4 • • APPENDIX GA - GLOSSARY OF TERMS Revenue Bonds Bonds usually sold for constructing a project, like a parking garage, that will produce revenue for the City. Principal and interest are payable exclusively from earnings of an enterprise fund. Rolled -back Millage Rate That millage rate which will provide the same property tax levy as was levied during the previous fiscal year, exclusive of levies on new construction, additions to structures, deletions, and property added due to geographic boundary changes. Source of Revenue Revenues are classified according to their source or point of origin. Tax Reserve The portion of the property tax levy estimated to be uncollected during the fiscal year and remains uncollected 60 days beyond the close of the fiscal y ear. Trim Bill An acronym referring to House Bill 4-D which was an act related to taxation amending Chapter 80-274 of the Florida State Statutes. (See Local Government'/2 Cents Sales Tax.) Unencumbered Balance The amount of an appropriation that is neither amended nor encumbered. It is essentially the amount of money still available for future purchases. GLOSSARY OF ACRONYMS ADA American with Disabilities Act A/R Accounts Receivable AFSCME American Federation of State, County & Municipal Employees CDBG Community Development Block Grant CIGU City Independent Group Union CIP Capital Improvement Plan CRA Community Redevelopment Agency CO Certificate of Occupancy CU Certificate of Use EEO Equal Employment Opportunity EPA Environmental Protection Agency FIFO Firefighters and Police Officers Trust Fund FOP Fraternal Order of Police GAAP Generally Accepted Accounting Principles GESE General Employees and Sanitation Employees Retirement Trust HCB Housing Conservation Board HIDTA High Intensity Drug Trafficking Apprehension HOME Home Investment Partnership 5 • APPENDIX 6A - GLOSSARY OF TERMS HOPWA Housing Opportunities for Persons with AIDS HUD United States Department of Housing and Urban Development TAFF International Association of Fire Fighters ICA Intergovernmental Cooperation Agreement JTPA Job Training_Partnership Act LETF Law Enforcement Trust Fund NET Neighborhood Enhancement Team NPDES National Pollutant Discharge Elimination System PAR Position Authorization Request Form PSA Public Service Aide SFOB State Financial Oversight Board SNPB Safe Neighborhood Parks Bond USD United States Department of Agriculture 6