FY2021 Adopted Budget

FY2021 Adopted Budget Appendices

Glossary of Terms

ACCRUAL - The method of accounting that recognizes income when earned and expenses when incurred regardless of when cash is received or disbursed. APPROPRIATION - 7KH &RXQW\¶V OHJDO DXWKRUL]DWLRQ WR VSHQG D VSHFLILF DPRXQW RI PRQH\ IRU D SDUWLFXODU SXUSRVH GXULQJ a fiscal period. ASSESSABLE BASE - The total valuation placed upon real and personal property, minus certain exemptions, by the State Department of Assessments and Taxation for the purposes of levying property taxes. The County Council determines the tax rate to be applied against the tax base to generate tax revenues to support the annual budget. Tax-exempt property is excluded from the assessable base. ASSESSED VALUATION - The valuation established for individual real estate or other property by the State for purposes of taxation. AUDIT - An independent review of financial results. This can take many forms and be subject to a wide array of professional standards and practices. BALANCED BUDGET - A budget in which total expenditures equal total revenues. Per the County Charter, t KH &RXQW\¶V budget must be balanced. BASE BUDGET ± WKH VWDUW RI WKH EXGJHW SURFHVV ZKLFK EHJLQV ZLWK ODVW \HDU¶V DGRSWH d budget, subtracts out all of the one-time items, and adds mandated and legally obligated expenses, contracted increases and capital budget operating costs for the upcoming fiscal year. BOND - An investment grade interest-bearing certificate of indebtedness sold by the County to generate funds. The bond guarantees payment to the bond holder the original investment plus interest by a specified date or dates in the future. Bonds typically involve long-term indebtedness to pay for Capital Projects. BOND RATING - Evaluation of the credit quality of bonds usually made by independent rating services. Ratings generally measure the probability of the timely repayment of principal and interest on municipal bonds. The rating agencies review information on County demographics, debt burden, economic base, finances and management structure in comparison to peer Counties. The information is evaluated and the bond issue is assigned a letter rating which reflects the credit worthiness of the bonds. The higher the credit rating, the more favorable the effect on the marketability of the bond and lower interest expense to the County, BUDGET - the package of materials consisting of the Operating Budget, the Capital Budget, the Capital Improvement Program, and the Budget Message. CAPITAL BUDGET - The plan to receive and expend funds for Capital Projects during the next fiscal year. CAPITAL IMPROVEMENT PROGRAM (CIP) - The plan to receive and expend funds for Capital Projects during the next fiscal year and the next succeeding five fiscal years. CAPITAL PROJECT - means any physical betterment or improvement; any preliminary studies and surveys related to a physical betterment and improvement; and the acquisition, renovation, remodeling and construction of any property for public use of a long-term or permanent nature. COMPONENT UNIT - Legally separate organizations for which the elected officials of the agency are financially accountable.

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