Page 511 - 2020-21 Budget Summary

GLOSSARY

Appropriation: A legal authorization to incur obligations and to make expenditures for specific purposes.

Assessed Valuation: The valuation set upon real estate and certain personal property in the City by the County
Assessor as a basis for levying property taxes.

Authorized Positions: Regular positions authorized for employment during the fiscal year in the budget.

Balance Available: Available cash balances at July 1 in special purpose funds that are projected to be unobligated
from prior years and available for appropriation in the budget. Section 3 of the budget shows the calculations for
each fund.

Board of Commissioners: The Mayor appoints commissioners, subject to confirmation by the City Council, to
manage operations for certain City departments. Each Board consists of five or more members.

Bond: A long-term IOU or promise to pay. It is a promise to repay a specific amount of money (the face amount of
the bond) on a particular date (the maturity date) with interest. Bond proceeds are primarily used to finance
capital projects.

Budget: A plan of financial activity for a specified fiscal year indicating all planned revenues and appropriations for
the year.

Budget Stabilization Fund: A fund created to prevent overspending during prosperous years and provide resources
to help maintain service levels during years of slow revenue growth or declining revenue. Charter Amendment P
established the Budget Stabilization Fund in the City Treasury. An ordinance and City policy establish the
requirements for transfers or expenditures from the Fund.

Budget Summary Book: Supplement to the budget that concisely highlights items in the budget such as the budget
goals, financial overview, and the departmental overview of its mission, goals, and budget considerations.

Bureau: A major division of the Department of Public Works that is responsible for certain tasks of the Department
such as construction and maintenance of public buildings, streets, bridges, sewers, storm drains, and related
improvements. The budget treats each bureau as a separate entity.

Capital Finance Administration Fund: A fund established to consolidate lease payments and related expenses
from long-term financing obligations.

Capital Improvement Expenditure Program: Expenditures for the acquisition, construction, expansion, or
rehabilitation of the City’s physical plant (such as streets, sewers, and storm drains) and facilities (such as fire
and police stations, libraries, and shops).

Certificate of Participation: A certificate of participation (which looks very much like a bond) represents a pro-rata
share in the pledged revenue stream made by a public agency pursuant to a lease financing (or an installment
purchase agreement), subject to appropriation.

Comprehensive Annual Financial Report: The annual publication of the City’s financial condition at the conclusion
of the fiscal year. The report is prepared to conform to Generally Accepted Accounting Principles (GAAP) for
governmental units and presents the financial data in conformity with the Adopted Budget.

Debt Policy: The City adopted a formal debt policy in August 1998 and revised it in April 2005. The debt policy
establishes guidelines for the structure and management of the City’s debt obligations. These guidelines include
target and ceiling levels for certain debt ratios to be used for planning purposes as shown in the City Debt Policy
Statement Schedule in Section 3 of the budget.
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