Page 514 - 2020-21 Budget Summary

GLOSSARY

Property Tax - One Percent: The tax based on one percent of the assessed market value of properties, except for
certain adjustments. The City is entitled to its pro rata share of the County collection under a formula dating from
1978, following the major change to the tax structure under Proposition 13.

Proposed Budget: The budget document that includes a line item listing by account of funding levels provided for
each department.

Proposition 13: The State proposition that limited the amount of ad valorem taxes on real property to one percent
of full cash value as determined by the County Assessor. The percent of the tax is only adjusted by additional ad
valorem on bonded indebtedness for acquisition or improvement of real property approved on or after July 1,
1978 by two-thirds of the voters on such indebtedness.

Regular Position Authority: A position funded in the budget and approved for filling by ordinance. The need for this
position is permanent.

Related Cost: A cost necessary for the functioning of a City department as a whole that is budgeted outside that
department. Such costs include pensions, health insurance, utilities, pool vehicles, and custodial services.

Reserve Fund: The fund in which general unrestricted cash is set aside outside the budget for unforeseen
expenditures and emergencies. The City can transfer these funds into the budget for such purposes. Unallocated
general revenue and unencumbered General Fund appropriations to departments at the close of the fiscal year
are transferred into this fund. The Reserve Fund is comprised of two accounts - a Contingency Reserve Account
and an Emergency Reserve Account. The Contingency Reserve Account is available to cover unexpected
expenditures and/or General Fund revenue shortfalls upon authorization by the City Council and Mayor. The
Emergency Reserve Account, which is set at a minimum of 2.75 percent of the General Fund revenues, may not
be used for funding unless the City Council and Mayor determine that there is an urgent economic necessity and
conclude that no other viable sources of funds are available.

Reserve Fund Policy: The policy that requires the City to maintain a Reserve Fund equal to five percent of General
Fund revenues. The policy further sets a minimum balance for the Emergency Reserve account of 2.75 percent
of General Fund receipts.

Resolution Position Authority: A position funded in the budget and approved for filling by a Council resolution. The
need for the position is expected to be temporary.

Revenue: Cash or credits the City receives during the fiscal year as income to finance general or restricted
operations. They include items such as taxes, fees from specific services, interest earnings, and grants from the
State or Federal governments.

Revenue Bond: A type of bond backed only by the revenues from a specific enterprise or revenue stream, such as
sewer revenues.

Revenue Outlook Book: Supplement to the budget that lists sources of General Fund revenue and includes graphs
and pertinent financial data and detail of departmental receipts by class and source for each operating
department.

Source of Funds: The section in the budget of each department or fund indicating whether it is financed from the
General Fund or special purpose funds.

Special Purpose Funds: Funds that account for proceeds of specific revenue sources that are legally restricted to
expenditure for specified purposes. The budget schedules for these funds are included in Section 3, which lists
the expenditure restrictions, revenue available, appropriations, and expenditures for three fiscal years.
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