Supplemental Information

Fiscal Year 2023

Data provided by Owatonna Chamber of Commerce - 2020

Glossary & Acronyms

The following is an abbreviated list of specialized governmental budgeting and accounting terms used in this budget:


BUDGET (OPERATING): A plan of financial operation embodying an estimate of proposed revenues and expenditures for a given period (typically a fiscal year). The term “Approved Budget” is often used to denote the City Council's officially Approved Budget under which the City and its departments operate.

CAPITAL OUTLAYS: Expenditures for the acquisition of capital assets. Includes the cost of land, buildings, permanent improvements, machinery, large tools, rolling, and stationary equipment.

CHARGES FOR SERVICE: User charges for services provided by the City to those specifically benefiting from those services.

COMPREHENSIVE PLAN: The Plan is an adopted document that establishes guidelines for the future growth of the City. The elements or chapters of the Plan help the City to establish policy in order to preserve, promote, protect and improve the public health, safety, comfort, good order, appearance, convenience, law enforcement and fire prevention and general welfare of the City and its citizens

DEBT SERVICE: Payment of fees, interest, and repayment of principal to holders of the City’s debt instruments.

DEPRECIATION: The decrease in value of physical assets due to use and the passage of time

ENTERPRISE FUND: Public Utilities are examples of enterprise funds. Separate financial accounting used for government operations that are financed and operated in a manner similar to business enterprises, and for which preparation of an income statement is desirable.

FRANCHISE FEES: Fees levied on a corporation in return for sanctioning a monopoly or permitting the use of public property, usually subject to regulation of the governing body

FUND: An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives.

FUND BALANCE: The excess of an entity’s or fund’s assets over its liabilities. A negative fund balance is sometimes called a deficit.

INTERNAL SERVICE FUND: Funds used to account for the financing of goods or services provided by one department or agency of a government to others within the government on a cost-reimbursement basis.

TAX CAPACITY: Property valuations on which taxing authority levies its tax rate.



BMF - Building Maintenance Fund


CIP - Capital Improvement Program

COLA - Cost of Living Adjustment

CPI - Consumer Price Index

CSO - Community Service Officer


EDA - Economic Development Authority


FICA - Federal Insurance Contributions Act

FTE - Full Time Equivalent

FY - Fiscal Year


GAAP - Generally Accepted Accounting Principles

GASB - Governmental Accounting Standards Board

GIS - Geographic Information Systems

GFOA - Government Finance Officers Association


HRA - Housing & Redevelopment Authority

HUD - Housing & Urban Development

HVAC - Heating, Ventilation, Air Conditioning


IT - Information Technology


LEC - Law Enforcement Center


MHZ - Megahertz

MSA - Municipal State Aid


PERA - Public Employees Retirement Association


ROW - Right-of-Way


SRO - School Resource Officer


TIF - Tax Increment Financing

TNT - Truth in Taxation


VRF - Vehicle Replacement Fund


WC - Workers Compensation

WWTP - Wastewater Treatment Plant