Glossary of Terms

Accrual Basis of Accounting

A method of accounting where revenues are recorded when service is given, and expenses are recognized when the benefit is received.

Actuarial

A person or methodology that makes determinations of required contributions to achieve future funding levels that addresses risk and time.

Ad Valorem Tax

A tax levied on the assessed value (net of the exemption) of real or personal property. This is commonly referred to as “Property Tax.”

Administrative Programs

Programs comprised of activities that are conducted by all or most business units within an organization. These programs generally support department specified core services.

Adopted Budget

The financial plan of revenues and expenditures as approved by the Board of County Commissioners at the beginning of the fiscal year (October 1).

Aggregate Millage Rate

A weighted average millage rate for the tax-supported funds including countywide municipal services taxing funds. Voted debt service millages are not included in the aggregate millage.

Annual Comprehensive Financial Report (ACFR)

This official annual report presents the status of the County’s finances in a standardized format. The CAFR is organized by fund and contains two basic types of information - a balance sheet that compares assets with liabilities and fund balance; and an operating statement that compares revenues and expenditures.

Amended Budget

The adopted budget as formally adjusted by the Board of County Commissioners.

Amendment A change to an adopted budget, which may increase or decrease the budgetary total. The change must be approved by the Board of County Commissioners.

Amortization

The reduction of debt through regular payments of principal and interest sufficient to retire the debt instrument at a predetermined date known as maturity.

Appropriation

A specific amount of money authorized by the Board of County Commissioners for the purchase of goods or services.

Assessed Property Value

The value set upon real estate or other property by the County Property Appraiser and the State as a basis for levying ad valorem taxes.

Assessed Valuation

The valuation of real property established by the Property Appraiser as a basis for levying taxes.

Audit

The official financial examination of an organization's accounts and financial situation.

Balanced Budget

A budget in which planned funds or revenues available are equal to planned expenditures.

Basis Point

Equal to 1.100 of one percent. If interest rates rise from 7.50 percent to 7.75 percent, the difference is referred to as an increase of 25 basis points.

Benchmarking

Determining the quality of products, services, and practices by measuring critical factors (e.g., how fast, how reliable a product or service is) and comparing the results to those of highly regarded competitors.

Board of County Commissioners The governing body of Pasco County, composed of five persons elected Countywide from Districts.

Bond Covenant

A legally enforceable promise made to the bondholders from the issuer, generally in relation to the source of repayment funding.

Bond Rating

A measure of an organization’s credit-worthiness.

Bond

A written promise to pay a sum of money at a specific date (called a maturity date) together with periodic interest detailed in a bond resolution.

Budget Adjustment

A revision to the adopted budget occurring during the effective fiscal year as approved by the Board of County Commissioners via an amendment or transfer.

Budget Calendar

The schedule of key dates involved in the process of adopting and executing the annual budget.

Budget Hearing

The public hearing conducted by the Board of County Commissioners to consider and adopt an annual budget.

Budget Message

A brief, written statement presented by the County Administrator to explain principal budget issues and to provide policy recommendations to the Board of County Commissioners.

Budget

A financial plan for a specified period (fiscal year) that matches proposed expenditures with anticipated revenues.

Business Plan

A written document outlining how County resources will be applied to achieving the objectives determined by the Strategic Plan.

Capital Equipment

Physical plant and equipment with an expected life of five years or more.

Capital Expenditure

The approved budgets for improvements to or acquisition of infrastructure, park development, building, construction or expansion, utility systems, streets, or other physical structures with an estimated cost of $5,000 or more.

Capital Improvement Plan

A document that identifies the costs, scheduling and funding of various large capital items; i.e., buildings, roads, bridges, and water and wastewater systems. The plan should identify costs associated with existing deficiencies versus capacity available for growth.

Capital Lease

An agreement conveying the right to use property, plant, or equipment usually for a stated period of time where the lessee assumes all the risks and rewards of ownership.

Capitalized Interest

When interest cost is added to the cost of an asset and expensed over the useful life of the asset.

Chargebacks

Charges originally incurred in one fund or program for the benefit of another fund or program. See “Less Charges”.

Communications Services Tax Simplification Law

A law created by Florida Legislature to combine communication services revenues with a two-tiered tax composed of State and local-option tax.

Community Development Block Grant

One of the longest-running programs of the U.S. Department of Housing and Urban Development that funds local community development activities such as affordable housing, anti-poverty programs, and infrastructure development.

Constitutional Officers

Elected officials that are funded in part or in total by the Board of County Commissioners but maintain autonomy of their own offices. The constitutional officers are the Clerk & Comptroller, the Property Appraiser, the Tax Collector, the Supervisor of Elections and the Sheriff.

Contingencies

A budgetary reserve to provide for an emergency or unanticipated expenditure during the fiscal year.

County Administrator

The Chief Executive Officer of the County, appointed by the Board of County Commissioners.

Debt Service Fund

The debt service fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs.

Debt Service

Payment of interest and principal on an obligation resulting from the issuance of bonds or other financing.

Defeasance

A provision that voids a bond when the borrower puts cash in escrow via a refunding bond issuance sufficient to service the borrower’s debt. When a bond issue is defeased, the borrower sets aside cash to pay off the bonds; therefore, the outstanding debt and cash offset each other on the balance sheet and are removed from the financial statements.

Deficit

The excess of expenditures over revenues during the fiscal year.

Department Programs

Programs comprised of activities conducted by a specific business unit (department or division) in order to address core services.

Depreciation

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

Designated

Funds that have been identified for a specific purpose. This differs from reserved funds, in that there is no legal requirement for funds that have been designated.

Encumbrance

An obligation incurred in the form of orders, contracts, and similar items that will become payable when goods are delivered, or services rendered.

Enterprise Fund

A fund which pays for its costs of operations from user fees and does not generally receive property tax support. County enterprise funds include Water and Waste Water and the Solid Waste/Resource Recovery System.

Escrow

Money or property held in the custody of a third party that is returned only after the fulfillment of specific conditions.

Exempt Exemption, Nonexempt

Amounts determined by state law to be deducted from the assessed value of property for tax purposes. Tax rates are applied to the balance; amounts remaining are called the nonexempt portion of the assessment. Prior to 2008 homesteaded properties in Florida received a $25,000 exemption on the value of their property. In 2008, as a result of Amendment 1 to the Florida Constitution, an additional amount up to $25,000 was granted to homesteaded properties. This additional exemption does not apply to the value for School taxes. Other exemptions apply to agricultural land and property owned by widows, the blind, and permanently and totally disabled persons who must meet income requirements. Another provision “Save Our Homes” portability allows property owners to transfer the benefits recognized under “Save our Homes” to another property. Visit the Property Appraiser’s website at http://appraiser.pascogov.com for additional information on exemptions.

Expenditures

Decrease in fund financial resources for the procurement of assets or the cost of goods and/or services received.

Federal Emergency Management Administration (FEMA)

Agency of the US government responsible for disaster mitigation, preparedness, response, and recovery planning.

Fiduciary Funds

Funds used to report assets held in a trustee or agency capacity for others and which therefore cannot be used to support the government’s own programs. The fiduciary fund category includes pension trust funds, investment trust funds, private-purpose trust funds, and agency funds.

Final Millage

The tax rate adopted in the final public budget hearing of a taxing authority.

Fines and Forfeitures

Consists of a variety of fees, fines, and forfeitures collected by the State Court System, including bail forfeitures, garnishments, legal defender’s recoupment, and juror/witness fees.

Fiscal Year

The annual accounting period for the County, which runs from October 1 through September 30.

Fixed Asset

Items owned by the County that cost a considerable amount and have a useful life exceeding two years (e.g., computers, furniture, equipment, and vehicles).

Fleet

The vehicles owned and operated by the County.

Forfeiture

The automatic loss of property, including cash, as a penalty for breaking the law, or as compensation for losses resulting from illegal activities. Once property has been forfeited, the County may claim it, resulting in confiscation of the property.

Full-Time Equivalent Position

A part-time position converted to the decimal equivalent of a full-time position based on 2,080 hours per year.

Fund Balance

The amount available within a fund at the close of a fiscal period which can be carried over as a source of available funding for the succeeding fiscal period.

Fund

Money set aside and accounted for separately in order to ensure that the money is spent for a specific purpose.

General Fund

The governmental accounting fund supported by ad valorem (property) taxes, licenses and permits, service charges, and other general revenue to provide Countywide operating services. This may be referred to as the operating fund.

Governmental Funds

Funds generally used to account for tax-supported activities. There are five different types of governmental funds - the general fund, special revenue funds, debt service funds, capital projects funds, and permanent funds.

Grant

A contribution of assets (usually cash) by one governmental unit or organization to an-other, given for a specified purpose.

Homestead Exemption - Pursuant to the Florida State Constitution, the first $25,000 of assessed value of a home, which the owner occupies as the principal residence, is exempt from the property tax.

Indirect Costs

Costs associated with, but not directly attributed to, the provision of a product or service. These are usually costs incurred by administrative departments in support of operating departments.

Inflation

A rise in price levels caused by an increase in available funds beyond the proportion of available goods.

Infrastructure

Public domain fixed assets including roads, bridges, curbs, gutters, sidewalks, drainage systems, lighting systems, and other items that have value only to the County.

Interfund Transfers

Budgeted amounts transferred from one fund to another fund. These represent “double counting” of expenditures. Therefore, these amounts are deducted from the total County operating budget to calculate the “net” budget.

Internal Service

The revenues and expenses that are generated through internal service funds. The two main internal service funds are Equipment Service and County Insurance.

Key Performance Indicator

A quantifiable measure used to evaluate the success of an organization, employee, etc., in meeting objectives for performance.

Less Charges

Short title for “Less Charges to Other Departments/Funds.” A credit given to the operating department which represents work completed on behalf of another department or fund. Its offset is a charge to the affected department or fund; the result is to show associated project costs properly allocated.

Level of Service

The product or end result of a measurable program that is provided through the available resources.

Levy

To impose taxes, special assessments or service charges. Another term used for millage rate.

Line Item Budget

A budget that lists each account category separately along with the dollar amount budgeted for each account, such as office supplies, overtime or capital purchases. A copy of the line item budget is available for review in the Office of Management and Budget, Second Floor, 7536 State Street.

Long-term Debt

Debt with a maturity of more than one year.

Major Fund

Funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds.

Mandated Program

A program that Pasco County must provide according to federal law, state law or a judge’s order.

Market Rate Value

The appraised value assigned to property by the County Property Appraiser. Typically, this value represents “Fair Market Value” less estimated selling expenses.

Mill

A taxation unit equal to one dollar of tax obligation for every $1,000 of assessed valuation of property.

Millage Rate

The rate of taxation applied to the taxable value of property. One mill equals $1.00 for every $1,000 of taxable value.

Millage

The total tax obligation per $1,000 of assessed valuation of property.

Mobility Fee

A transportation system charge to recoup the proportionate cost of transportation demand generated by all new development. This fee, which includes assessments for roadways, transit, and bicycle/pedestrian facilities, is designed to encourage development of specific land uses in specific locations and promote compact, mixed-use and energy efficient development.

Modified Accrual Basis

The basis of accounting under which revenues are recognized when measurable and available to pay liabilities and expenditures are recognized when the liability is incurred, except for interest on long-term debt, which is recognized when due, and the noncurrent portion of accrued vacation and sick leave, which is recorded in general long-term debt.

Municipal Service Benefit Unit

Various unincorporated areas within Pasco County. Residents of the unit are assessed a special assessment by the County to provide services which would be provided by a municipality if the area were incorporated. The Quail Hollow Village is a Municipal Service Benefit Unit.

Municipal Service Taxing Unit

Various unincorporated areas within Pasco County. Residents of the unit are assessed a millage rate by the County to provide services which would be provided by a municipality if the area were incorporated. The Pasco County Fire Municipal Service Taxing Unit is one, as well as Williamsburg West.

Object Code

An account to which an expense or expenditure is recorded in order to accumulate and categorize the various types of payments that are made by governments. These are normally grouped into personal services, operating expenditures, capital outlay and other categories for budgetary analysis and financial reporting purposes. Certain object codes are mandated by the State of Florida Uniform Accounting System.

Operating Budget

A budget for general revenues and expenditures, such as salaries, utilities, and supplies.

Operating Expenditures

Also known as operating and maintenance costs, these are expenditures for day-to-day operations, such as office supplies, maintenance of equipment and travel. Capital costs are excluded.

Operating Lease

A lease that is paid out of current operating income rather than capitalized.

Per Capita

A measurement of the proportion of some statistic to an individual resident determined by dividing the statistic by the current population.

Performance Budget

A budget wherein expenditures are based primarily upon measurable performance of activities and work programs.

Performance Measure

Data collected to determine how effective and/or efficient a program is in achieving its objectives.

Permit Revenues

Fees imposed on construction-related activities and for the acquisition of other nonbusiness permits (e.g., dog, bicycle).

Potable Water

Water that is fit to drink.

Present Value

The discounted value of a future amount of cash, assuming a given rate of interest, to take into account the time value of money.

Program

A grouping of closely related activities that facilitate efficient and effective management of a public service.

Property (Ad Valorem) Taxes

Revenue which is collected on the basis of a rate applied to the taxable valuation of real property.

Proposed Millage

The tax rate certified by the governing body of each taxing authority within a fiscal year. The proposed millage is sent to the Property Appraiser within 35 days after the County’s tax roll is certified. This proposed millage is placed on the proposed tax notice sent to property owners.

Proprietary Fund

Enterprise and internal service funds that are similar to corporate funds, in that they are related to assets, liabilities, equities, revenues, expenses, and transfers determined by business or quasi-business activities.

Public/Private Partnership

A joint project conducted with resources of the County and a private organization, generally nonprofit.

Real Property

Land, buildings and other structures attached to it that are taxable under Florida Law.

Refunding

Paying off an outstanding bond issue by using money from the sale of a new bond offering. In other words, issuing more bonds to pay off existing bonds.

Reserve

An account used to indicate that a portion of the budget is legally restricted for a contingency or other lawful purpose and is, therefore, not available for general appropriation.

Revenue Bonds

A government-issued bond sold for construction of a capital project. Debt service requirements are met from the proceeds of a specific revenue source.

Revenue Estimates

A formal estimate of how much revenue will be earned from a specific revenue source for some future period, such as the next fiscal year.

Rolled-Back Millage Rate

A tax rate that will generate the same tax dollar revenue as in the current fiscal year based on the new assessed value exclusive of new construction.

Special Assessment

A compulsory levy imposed on certain properties to defray part or all of the costs of a specific improvement or service deemed to primarily benefit those properties.

Special Revenue Fund

A fund used to account for the proceeds of specific revenue sources or to finance specified activities as required by law or administrative regulation.

State Revolving Fund

A low interest loan program from the Florida Department of Environmental Protection for planning, designing, and constructing drinking water and wastewater projects.

Strategic Plan

A document outlining long-term goals, critical issues, and action plans, which will increase the organization’s effectiveness in attaining its mission, priorities, goals, and objectives. Strategic planning starts with examining the present, envisioning the future, choosing how to get there, and making it happen.

Structurally Balanced Budget

A budget that supports financial sustainability for multiple years in the future.

Tax Base

The total property valuations on which each taxing authority levies its tax rate.

Tax Roll

The certification of assessed taxable values prepared by the Property Appraiser and presented to a taxing authority by July 1 (or later if an extension is granted by the State of Florida) each year.

Tax Year

The calendar year in which ad valorem property taxes are levied to finance the ensuing fiscal year’s budget. For example, the tax roll for January 1, 2013, would be used to compute an ad valorem tax levied effective October 1, 2013.

Taxable Value

The assessed value minus exemptions, such as the Homestead Exemption, is the taxable value. This value multiplied by the millage rate equals the property tax amount.

Tentative Millage

The tax rate adopted at the first public hearing of a taxing authority. Under state law, the authority may reduce, but not increase, the tentative millage during the final budget hearing without first providing written notification to all affected property owners.

Transport Fees

The cost to provide ambulance transportation to patients from home to hospital.

Truth in Millage

A tax increase or decrease given the relationship of assessed values and millage rates. If the average assessed value in-creases, the millage rate should decrease (see Rolled-Back Millage Rate).

Unappropriated

Not obligated for specific purposes. (See Undesignated)

Undesignated

Without a specific purpose. (See Unappropriated)

Unencumbered

The portion of an allotment not yet expended or accounted for.

Useful Life

The period of time that a fixed asset is able to be used. This can refer to a budgeted period of time for an equipment class or the actual amount of time for a particular item.

User Charges (Proprietary)

The payment of a fee for direct receipt of goods or services by the person benefiting from the services.

Variable Rate

A rate of interest subject to adjustment (e.g., the rate of interest specified may be a percentage of the prime rate on a certain set of dates).

Voted Millage

A tax levied to support a program(s) that has been approved by voter referendum.

Working Capital

A financial metric which represents operating liquidity available to a business. It is calculated as current assets minus current liabilities.