HomeMy WebLinkAboutN. GLOSSARYCI TY OF SAN DIMAS
Glossary of Budget Terms
Amendment An amendment is a change in the budget that occurs after its initial adoption. Such a
change will consist of an increase or decrease in revenues that are recognized or in the level of
authorized expenditures. City staff may implement some amendments, but most require formal action
by the City Council.
Appropriation An authorization by the City Council to make expenditures/expenses and to incur
obligations for a specific purpose within a specific time frame.
Assessed Valuation A dollar value placed on real estate or other property by Los Angeles County
as a basis for levying property taxes.
Audit A review of the City's accounts by an independent auditing firm to substantiate fiscal year end
funds, salaries, reserves and cash on hand and to determine whether the financial statements of a
government are presented fairly in conformity with GAAP.
Beginnin_q/Endin_q Fund Balance Unencumbered resources available in a fund from the
prior/current fiscal year after payment of the prior/current fiscal year's expenditures/expenses. This is
not necessarily cash on hand but the amount of financial resources available for use. Generally, this
represents the detail of the entire annual operating surpluses and deficits since the funds's inception.
Bond A City may raise capital by issuing a written promise to pay a specific sum of money, called the
face value or principal amount, at a specific date or dates in the future, together with periodic interest
at a special rate.
Budget A fiscal plan of financial operation listing an estimate of proposed applications or
expenditures and the proposed means of financing them for a particular time period. The budget is
proposed until it has been approved by the City Council.
Capital Expenditure Expenditures resulting in the acquisition of or addition to the government's
general fixed assets.
Capital Improvement A permanent addition to the City's assets, including the design, construction,
or purchase of land, buildings, or facilities, or major renovations of same.
Capital Out/aV A budget appropriation category which budgets all equipment having a unit cost of
more than apre-approved amount and an estimated useful life over apre-approved period.
Debt Service Payment of the principal and interest on an obligation resulting from the issuance of
bonds, notes, or certificates of participation (GOP's).
Debt Service Fund This fund type is used to account for the accumulation of resources for, and the
payment of, general long-term debt principal and interest.
Deficit An excess of expenditures over revenues (resources).
Department An organizational unit comprised of divisions or programs. It is the basic unit of service
responsibility encompassing a broad mandate of related activities.
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Division Asub-section (or activii~:y) within a department which furthers the objectives of the City
Council by providing specific services.
Expenditure The actual spending of Governmental funds set aside by appropriation.
Fee A fee is a charge imposed by the City on the beneficiary of a service it provides. Its purpose is
to help recover some or all of the ~~ost incurred by the City in providing a service. By law, a fee may
not exceed the cost of providing a service.
Fiscal Year Atwelve-month period of time to which a budget applies. In the City of San Dimas the
fiscal year is July 1 through June 30.
Fixed Asset Long-lived tangible assets obtained or controlled as a result of past transactions,
events or circumstances. Fixed assets include buildings, equipment, and improvements other than
buildings and land. In the private sector, these assets are referred to most often as property, plant
and equipment.
Full Time Position A full time F~osition is one in which an employee is budgeted to work 40 hours
per week or 2,080 hours each ye~rr. All full time positions receive benefits such as holiday, vacation,
sick pay, retirement benefits, health insurance, etc.
Fund An independent fiscal and accounting entity used to record all financial transactions related to
the specific purpose for which the fund was created.
General Fund The primary fund of the City used to account for all revenues and expenditures of the
City not legally restricted as to use. This fund is used to offset the cost of the City's general
obligations. Examples of division: financed by the General Fund include Administration, City Council,
Planning, Public Safety, Public Works, and Parks and Recreation.
Grant Contributions of cash or other assets from another governmental entity to be used to expend
for specific purpose, activity, or facility. An example is the Community Development Block Grant
provided by the Federal Government.
Interfund Transfer Monies transferred from one fund to another. Such money is transferred to
finance the operations of another fund or to reimburse the fund for certain expenditures/expenses.
Line-Ifem A line-item is the detailed grouping of expenditures used in the City's accounting system.
It is subordinate to an expense c2~tegory. Typical line items are: professional services, office
supplies, travel, postage, office equipment, motor vehicles, etc.
Municipal Code A book that contains the City Council approved ordinances currently in effect. The
Code defines City policy with res~~ect to areas such as planning, etc.
Ordinance A formal legislative Enactment by the City Council. It has the full force and effect of law
within City boundaries unless pre••empted by a higher form of law. An ordinance has a higher legal
standing than that of a Resolution.
Part Time Position Apart timE~ position is one in which an employee is budgeted to work less than
20 hours per week or for less than six months during the year. Part time employees do not receive
benefits such as holiday, vacation, sick pay, retirement benefits, health insurance, etc. but do receive
medicare benefits and a portion of their earnings deposited in a deferred compensation plan instead
of social security.
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Personal Services A budget category which generally accounts for full time, regular part time and
part time employees, overtime e~;pense, and all employee benefits, such as medical, dental and
retirement.
Pro%ect Area A redevelopment project area is an area of the City that has been established by the
adoption of a Redevelopment Plan and within which the Redevelopment Agency is authorized to use
special powers granted by State law.
Reclassification The City maintains a classification system for all positions which establishes job
titles, general duties and responsibilities, and compensation. Occasionally, employees are found to
be working tasks or functions thal fall outside their existing classification. When this occurs, a study is
conducted by the Personnel Division and recommendation is made for proper classification.
Redevelopment This term refers to activities undertaken to renovate blighted areas within the City
and to provide housing to low and moderate income persons. Blight consists of a variety of conditions
that constitute a serious physical, social, and economic burden on the community and that cannot be
corrected by private enterprise acting alone. Redevelopment activities may include, but are not limited
to, the acquisition and conveyance of property, site clearance, and the provision of streets, utilities,
parks, and other public improvements.
Regular Part Time Position F- regular part time position is one in which an employee is budgeted
to work 20 hours or more per week. Regular part time employees receive retirement benefits,
medicare benefits, and a portion of their health insurance should they elect to enroll through the City's
plan.
Reserve An account used to record a portion of the fund balance as legally segregated for a specific
use.
Resolution A special order of tFie City Council which has lower legal standing than an Ordinance.
Revenue Bonds A type of bonc~ usually issued to construct facilities. The bonds are repaid from the
revenue produced by the operation of facilities.
Single Audit An audit performed in accordance with the Single Audit Act of 1984 and Office of
Management and Budget (OMB) ~~ircular A-128, Audits of State and Local Governments. The Single
Audit Act allows or requires governments (depending on the amount of federal assistance received) to
have one audit performed to meet the needs of all federal grantor agencies.
Special Revenue Funds This fund type collects revenues that are restricted by the City, State, or
Federal Government as to how the City might spend them.
Tax A tax is a levy imposed by a local government in conformance with the Government Code to
raise revenue for public purposes. There are two types of taxes: general taxes are imposed for
general governmental purposes, and special taxes are imposed for specific purposes.
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