FY2022-FY2027 Adopted Capital Improvement Program

FY2022 Adopted Budget Capital Improvement Program Appendices

Glossary of Terms

A APPROPRIATION The County s legal authorization to spend a specific amount of money for a particular purpose during a fiscal period. AUDIT An independent review of financial results. This can take many forms and be subject to a wide array of professional standards and practices. B BALANCED BUDGET A budget in which total expenditures equal total revenues. Per the County Charter, the County s budget must be balanced. BASE BUDGET the start of the budget process, which begins with last year s adopted 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. C CAPITAL BUDGET The plan to receive and expend funds for Capital Projects during the next fiscal year. CAPITAL EXPENSE An asset that is purchased/built that has a value over $10,000. These assets can be budgeted and expensed in both Operating and Capital budgets. 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 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. D DEBT SERVICE The annual payment of principal and interest on the County s bonded debt. DIVISION The major organizational unit in Frederick County Government. Departments, Offices and other named organizational units report up to a Division. E ENTERPRISE FUND A fund established to account for the financing of certain self supporting services provided by the County government. The services generate their own revenues from fees, charges and other receipts.

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