Glossary
GLOSSARY OF TERMS USED IN THIS BUDGET DOCUMENT
Accrual Accounting: A basis of accounting in which revenues and expenditures are recorded at the time they are earned or incurred as opposed to when cash is actually received or spent. For example, in accrual accounting, revenue, which was earned in December, but not collected until January, is recorded as revenue of December rather than January.
ADA: Americans with Disabilities Act signed into law July 26, 1990, intending to make businesses more accessible to people with disabilities.
AMR: Automated Meter Reading.
Appropriation: An authorization of a specific amount of money made by the City Council which permits the City to incur obligations and to make expenditures of resources.
Appropriation Ordinance: The official enactment by the City Council to establish legal authority for City officials to obligate and expend resources.
Assessed Valuation: The value that is established for real or personal property by the County Assessor for the purpose of levying property taxes.
AWWA: American Water Works Association.
Balanced Budget: The City defines a balanced budget as one in which expenditures do not exceed available resources. Available resources are defined as projected revenues plus beginning fund balance.
Budget: A fiscal plan for a specified period of time (fiscal year) that balances projected revenues and fund balance appropriations to estimated expenditures and operating transfer obligations.
Capital Improvement Plan: An annually updated plan of capital expenditures for public facilities, infrastructure and major fixed assets with estimated costs, sources of funding and timing of projects.
Capital Improvement Project: A permanent addition to the City’s assets and includes design, construction and purchase of land, buildings and facilities.
Capital Expenditure: Represents expenditures which result in the acquisition or addition to fixed assets including: land; buildings; streets and street improvements; recreation facilities; electric and water lines; and machinery or equipment with an expected life of more than one year, a per unit cost of $5,000 or more, and is used in operations.
Cash Accounting: A basis of accounting in which transactions are recorded when cash is either received or expended for goods and services.
CDBG: Community Development Block Grant. The CDBG program is a U.S. Department of Housing and Urban Development program that provides local governments and states with resources to address a wide range of unique community development needs.
Contingency: An appropriation of funds to cover unforeseen events that occur during the fiscal year.
CIRSA: Colorado Intergovernmental Risk Sharing Agency. CIRSA provides Property/Casualty Insurance and Workers’ Compensation Insurance for the City of Fountain.
CML: Colorado Municipal League. The CML is an organization representing Colorado’s cities and towns collectively in matters before the state and federal government. CML also provides information services to assist municipal officials in managing their governments.
CTF: Conservation Trust Fund. The Conservation Trust Fund is used to account for monies received from the Colorado Lottery for the purposes of purchasing park/open space land, making improvements in the City’s park system, and maintaining the park system.
Debt Limit: The maximum amount of outstanding gross or net debt legally permitted. The City of Fountain’s legal debt limit is 10% of the assessed property values in the city limits.
Debt Service: The payment of principal, interest and bond reserve requirements on borrowed funds such as notes and bonds.
Department: A department is the highest level organizational unit of municipal government operations. The City’s departments include City Clerk’s Office, Economic Development, Finance, Fire, Information Technology, Municipal Court, Office of the City Manager, Planning & Code Enforcement, Police, Public Works, and Utilities. The City’s structure at the Department level is presented in the organizational chart.
Depreciation: Expiration in the service life of fixed assets because of wear and tear, deterioration, action of physical elements, inadequacy or obsolescence.
Division: A group which is comprised of a specific operation within a functional area. City Departments may contain one or more divisions.
Encumbrance: An administrative control under which a commitment of purchase an item or service is recorded; thus, the money is not available for new expenditure commitments. The use of encumbrances prevents overspending and permits officials to be certain of how much money is available for new commitments.
Enterprise Funds: Enterprise Funds are used to account for operations that are financed and operated similar to private business enterprises – where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The rate schedules for these services are established to ensure that revenues are adequate to meet all necessary expenditures. Enterprise Funds in the City of Fountain include the Water Fund and Electric Fund.
EPA: Environmental Protection Agency. A part of the US federal government that enforces environmental laws and provides information and guidance to policy makers.
ESA: Emergency Services Agency.
Expenditure: Decreases in net financial resources. Expenditures include current operating expenses requiring the present or future use of net current assets, debt service, capital outlays, intergovernmental grants, entitlements, and shared revenues. Note that an encumbrance is not an expenditure, but reserves funds to be expended.
Fiscal Year: The time period designated by the City signifying the beginning and ending period for recording financial transactions. For the City of Fountain, the fiscal year is the calendar year, January 1, through December 31.
FTE: Full-time equivalent. The hourly equivalent of a full-time employee. An FTE can be made up of either one full-time employee or two or more part-time employees whose total hours equal 40 per week.
Fund: An accounting entity that has a set of self-balancing accounts and that records all financial transactions for specific activities or governmental functions. Funds can be categorized into one of eleven fund types: general fund; special revenue funds; debt service funds; capital project funds; permanent funds; enterprise funds; internal service funds; investment trust funds; pension trust funds; private-purpose trust funds; investment trust funds; and agency funds.
Fund Balance: It is the difference between assets and liabilities, deferred outflows of resources and deferred inflows of resources, of a government fund. Because assets may include non-cash items, fund balances may not represent liquid assets. Changes in fund balance from year to year are the result of the differences between revenues and expenditures including other financing sources and uses.
GASB: Governmental Accounting Standards Board. GASB is to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports.
General Fund: The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in other funds. General Fund revenues include: sales and use taxes; property taxes; licenses and permits; intergovernmental; and other types of revenue. This fund includes most of the basic operating services including Police, Fire, Finance, Public Works, Parks, Municipal Court and General Administration.
GFOA: Governmental Finance Officers Association. The purpose of the GFOA is to enhance and promote the professional management of governments for the public benefit. The GFOA accomplishes this by identifying and developing financial policies and practices and promoting them through education, training, and leadership. The City of Fountain will be submitting the 2010 Budget document for consideration in the GFOA Distinguished Budget Presentation Award Program.
GID: General Improvement District.
GIS: Geographic Information System. GIS is a specialized information system for capturing, storing, querying, analyzing, and displaying geographic data. Geographic data describes both the location and characteristics of features or objects on the earth’s surface.
Governmental Funds: All governmental funds are accounted for on a spending or “financial flow” measurement focus. Only current assets and current liabilities are generally reported on their respective balance sheets. Their reported fund balance (net current assets) is considered a measure of “available spendable resources.” Governmental fund operating statements report increases and decreases in net current assets and, accordingly, present a summary of sources and uses of “available spendable resources” during the period. The City of Fountain’s governmental funds are the General Fund, Conservation Trust Fund, Community Development Block Grant Revolving Fund, Heritage Maintenance District Fund, Contingency Fund, Volunteer Fund, and General Improvement District #1 Fund.
Grant: A contribution made from either the private sector to the City or by one governmental unit to another. The contribution is usually made to support a specified program, function, or project.
Impact Fees: Fees charged to developers to cover, in whole or in part, the anticipated cost of improvements that will be necessary as a result of the development (i.e. parks, storm drainage).
Infrastructure: Facilities on which the continuance and growth of a community depend such as roads, waterlines, sewers, public buildings, and parks.
Interfund Transfers: Amounts transferred from one fund to another. Transfers are not expenditures and must be appropriated for expenditures in the funds receiving the transfer.
Intergovernmental Revenue: Money received from federal, state, and other governmental bodies. Examples are Highway User Tax Fund and Cigarette Tax.
Internal Service Fund: Proprietary funds used to account for the furnishing of goods or services by one department or agency to other departments or agencies on a cost reimbursement basis.
IT: Information Technology.
LED: Light Emitting Diode. LED is a light that uses from one-third to one-fifth of the energy of a conventional incandescent light bulb.
Levy: To impose taxes, special assessments, or service charges for the support of City activities.
Liability: Amounts owed for items received, services rendered, expenses incurred, assets acquired, construction performed, and amounts received but not yet earned. Liabilities are financial obligations or debts.
Major Fund: Any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10 percent of the revenues or expenditures of the appropriated budget should be considered as major funds. The City of Fountain’s major funds are the General Fund, Water Fund, and Electric Fund.
Modified Accrual: Under Modified Accrual Accounting, revenues are recognized in the accounting period when they become both measurable and available as net current assets.
Mill Levy: Rate by which assessed valuation is multiplied to determine property tax. A mill is 1/10 of one cent or 1 mill equals $1 per $1,000 of assessed value.
MVEA: Mountain View Electric Association.
MWh: Megawatt Hour. A unit for measuring energy.
NESC: National Energy Safety Council.
Net Position: The residual of all other financial statement elements presented in a statement of financial position of a proprietary fund.
Non-major fund: Any fund whose revenues or expenditures, excluding other financing sources and uses, constitute less than 10 percent of the revenues or expenditures of the appropriated budget.
O & M: Operations and Maintenance.
Operating Budget: The portion of the budget that pertains to continuing every-day expenditures, such as personal services, utilities, contractual services, debt service, and commodities.
Parks Advisory Board: The Board consists of five members. The duties of the Board are to make recommendations to the City Council concerning the purchase or disposition of park and open space lands and the annual budget for the Conservation Trust Fund.
Personal Services: Salaries, wages, federal and state withholding and fringe benefits such as pensions and insurance.
Projection: Estimation of future revenues and expenditures based on past trends, current economic conditions and financial forecasts.
Property Tax: A tax which is levied on both real and personal property according to that property’s valuation, assessment rate and mill levy.
Proprietary Funds: Proprietary Funds account for the acquisition, operation and maintenance of governmental facilities and services, which are self-supported by user charges. The City of Fountain has two proprietary fund types: Enterprise funds which are the Water, Electric, Ambulance, and Drainage Funds and the Internal Service fund is the Insurance Fund.
PUC: Public Utilities Commission regulates electric, natural gas and telephone service. The Commission ensures that utilities provide safe, adequate, reliable service at fair, reasonable rates.
Reserve Fund Balance: The portion of a fund’s balance that is legally restricted for a specific purpose and is, therefore, not available for general appropriation.
RETAC: Region Emergency Medical Trauma Advisory Council.
Revenue: The taxes, fees, charges, special assessments, grants, and other funds collected and received by the City in order to support the services provided.
Risk Management: An organized attempt to protect an entity’s assets against accidental loss in the most economical manner, and programs to minimize worker injury and supervisory actions to limit City liability.
R-O-W: Right of Way.
SCADA: Supervisory Controlled and Data Acquisition System, is a computer system for gathering and analyzing real time data. SCADA systems are used to monitor and control a plant or equipment. The City of Fountain uses SCADA in the water and electric utilities.
SMART Grid: Install communication infrastructure and meters (residential and commercial) to permit two way communications between the customer and the utility which will allow automated meter reads, remote disconnect, remote programming, voluntary in home display, etc.
Special Assessment: A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties.
Special Revenue Fund: Special Revenue funds are used to account for resources and expenditures which are designated by law or contractual agreement for specified functions or activities and are legally required to be accounted for in a separate fund.
TABOR: Tax Payer’s Bill of Rights. TABOR refers to an amendment to the State constitution which put in place several restrictions to state and local government. The most significant limits are the requirements for all tax rate increases to be by voter approval, and creating revenue limits a government must abide by, refunding all revenue over the limit unless given voter approval. The City of Fountain is not De-Tabored.
Tap Fee: The fee paid by new development to hook up to the City’s water system to contribute to financing water facilities to meet the needs of increased population.
Transfers: Amounts distributed from one fund to finance activities in another fund. Transfers are shown as expenditures in the originating fund and as revenues in the receiving fund.
Unreserved Fund Balance: The portion of a fund’s balance that is not restricted for a specific purpose and is available for general appropriation.
Water Acquisition Fee: A per dwelling unit fee collected at the time of building permit issuance. This new development related fee is intended to recover the cost of purchasing additional water rights and infrastructure for new growth.