Account: A record of additions, deletions, and balances of individual assets, liabilities, equity, revenues, and expenses.
Accounting System: The set of records and procedures that are used to record, classify, and report information of the financial status and operations of an entity.
Adopted Budget: The Town Council approved annual budget establishing the legal authority of the expenditure of funds as set forth in the adopting Council budget resolution.
Appropriation: Money set aside by the Town Council for a specific purpose. Provides designated spending authority to the Town Manager to approve or oversee approval of the appropriated expenditures.
Audit: An annual examination and evaluation of the Town’s accounting system performed by an independent Certified Public Accountant (CPA) to ensure conformity with generally accepted accounting principles. In conjunction with performing an audit, independent auditors normally issue a Management Letter stating the adequacy of the Town’s internal controls as well as recommending improvements to the Town’s financial management practices.
Balanced Budget: When the total of revenues and other financing sources is equal to or greater than the total of expenditures and other financing uses.
Basis of Accounting & Budgeting: A method used to determine when revenues, expenditures, transfers, and the related assets and liabilities are recognized in the accounts and reported in the financial statements. The three basis of accounting for governmental agencies are (1) Cash Basis – when cash is received or paid; (2) Accrual Basis – when the underlying transaction or event takes place; (3) Modified Accrual Basis – revenues are recognized in the accounting period in which they become available and expenditures are recognized in the accounting period in which the fund liability occurred. The Town of Yountville uses a modified accrual basis for our governmental funds and an accrual basis for our enterprise funds.
Budget & Fiscal Policies: General and specific guidelines adopted by the Town Council that govern budget preparation and fiscal administration.
Capital Improvement Program: A rolling multiple-year program for maintaining or replacing existing public facilities and assets and for building or acquiring new ones. The Town of Yountville follows a five-year schedule and the annual budget incorporates the current year of the five-year CIP.
Certificate of Participation: Form of lease-purchase financing used to construct or acquire capital facilities and equipment.
Charges for Service: Revenues collected as reimbursement for services provided to the public.
Comprehensive Annual Financial Report: An annual government financial statement that provides a thorough and detailed presentation of the government’s financial condition.
Consumer Price Index (CPI): A measure of inflation of the price of consumer goods and services.
Debt Service: The payments of principal and interest on bonds and other debt instruments according to a predetermined schedule.
Deficit: An excess of expenditures or expenses over revenues or resources during an accounting period.
Department: An organizational unit of the Town government responsible for carrying out specific functions. In the Town’s structure, certain “departments” are actually divisions of a multipurpose department.
Encumbrances: Commitments against an approved budget to pay funds in the future for a service or item. They cease to be encumbrances when the obligations are paid or terminated. The use of encumbrances prevents overspending and provides budgetary control to the organization.
Expenditure: The actual spending or accrual of funds set aside by an appropriation for goods and services obtained.
Fiscal Year: A 12-month period to which the annual budget applies and financial transactions are recorded. The Town of Yountville’s fiscal year begins July 1 and ends June 30.
Full–Time Equivalent (FTE): The amount of time a position has been budgeted reflecting the amount of time a regular, full-time employee normally works in a year. Full-time employees are paid for 2,080 hours in a year equating 1.0 FTE. A part-time employee who worked 1,040 hours would equate to 0.5 FTE. Elected positions are budgeted but not included in FTE totals.
Fund: An independent fiscal and accounting entity with a self-balancing set of accounts in which the Town records financial transactions relating to revenues, expenditures, assets, and liabilities. Funds are segregated for the purpose of carrying on specific activities or attaining certain objectives. The fund types used by the Town of Yountville are governmental funds (General, Capital Projects, and Special Revenue), Enterprise Funds (Water Utility and Wastewater Utility) and a Custodial Fund. Note: See Fund Descriptions for a more detailed description of the Town’s funds.
Fund Balance: The excess of a fund’s assets over its liabilities.
GANN Appropriations Limit: Article X111-B of the California State Constitution provides limits regarding the total amount of appropriations in any fiscal year from tax proceeds.
General Fund: The primary operating fund of the Town. All revenues that are not allocated by law or contractual agreement to a specific fund are accounted for in the General Fund and may be utilized for any legitimate governmental purpose.
Generally Accepted Accounting Principles (GAAP): Conventions, rules, and procedures that serve as standards for accounting and the fair presentation of financial statements. The primary authoritative body on the application of GAAP to state and local government is the Governmental Accounting Standards Board.
Governmental Accounting Standards Board (GASB): Ultimate authoritative accounting and financial reporting standard-setting body for state and local governments.
Interfund Transfer: Money transferred from one fund to another to finance the operations of another fund or reimburse the fund for certain expenditures/expenses.
Measure A: An ordinance of the Napa County Flood Protection and Watershed Improvement Authority that imposes a 0.5% Napa County Flood Protection Transactions (Sales) and Use Tax.
Measure S: A voter-approved ordinance of the Town that increased Transient Occupancy Tax by 1%. This special tax is for funding programs related to workforce and affordable housing.
Municipal Code: The document that codifies the Town Council approved ordinances currently in effect. The Code defines Town policy with respect to all areas of municipal jurisdictions and administration.
Ordinance: A formal legislative enactment by the Town Council. It has the full force and effect of law within Town boundaries unless pre-empted by a higher form of law. An Ordinance has a higher legal standing than a Resolution and is typically codified in the Town’s Municipal Code.
Other Post-Employment Benefits (OPEB): Post-employment benefits other than pension benefits. The Town’s OPEB includes post-employment healthcare benefits for employees that meet the vesting requirements.
Public Employees' Retirement System (PERS): State of California’s (CalPERS) public pension system that provides contract retirement and health benefits to government agencies.
PERS Unfunded Actuarially Accrued Liability (UAAL): The Town’s unfunded liability for retirement costs. The unfunded liability is the difference between the accrued liability and the value of the assets in the plan.
Reserve: An account which the Town uses to either set aside funds that it does not need to spend in the current fiscal year or to earmark revenues for a specific future purpose.
Resolution: A special order of the Town Council which has a lower legal standing than an ordinance.
Revenues: Income received by the Town during the fiscal year. Some examples of revenue include taxes, fees, charges for services, and grants.
Special Revenue Funds: A fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.
Tourism Improvement District (TID): A benefit assessment district created by the County of Napa which includes all incorporated jurisdictions including the Town of Yountville and unincorporated county. The Napa Valley Tourism Improvement District (NVTID) levies a self-assessment of 2% of gross revenues on short term (less than 30 days) room rental revenue on lodging businesses.
Transient Occupancy Tax (TOT): A local tax levied on the occupant of any hotel room in the amount of twelve percent (12%) of the rent charged by the operator. The transient satisfies this tax obligation by paying the tax to the operator.