FY2022 Adopted Operating and Capital Budget

FY2022 Adopted Budget Appendices

Glossary of Terms

A 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. B 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 DGRSWHG EXGJHW 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. BUDGETARY BASIS ± the basis on which governmental funds are budgeted which combines the cash method and full accrual method of accounting, with a focus on current year obligations and to confirm that current revenues are sufficient to cover the obligations. C CAPITAL (Expense Category) ± A classification in the budget software that groups similar accounts. Capital expense includes all accounts associated with capital expenses (see definition below) . 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. 559