FY2018 Recommended Budget

Bond Referendum – An election in which registered voters vote on whether the Town will be allowed to issue debt in the form of interest- bearing bonds.

Capital Outlay – Outlays which result in the acquisition (either new or replacement) or additions to fixed assets having a significant value ($5,000 or more) and possessing a useful life of more than one year. Capital Project – Major construction, acquisition, or renovation activities which add value to physical assets or significantly increase their useful life. Capital Project Fund – A fund used to account for financial resources accumulated for the acquisition or construction of major capital facilities. Capital Reserve Fund - A type of account on a municipality's balance sheet that is reserved for long-term capital investment projects or any other large and anticipated expense(s) that will be incurred in the future. This type of reserve fund is set aside to ensure that the company or municipality has adequate funding to at least partially finance the project. Chart of Accounts – A chart that assigns a unique number to each type of transaction and to each budgetary unit in the organization. COLA – A Cost-of-Living Adjustment is an increase in salaries to offset the adverse effect of inflation on compensation. Consumer Price Index (CPI) – A statistical description of price levels provided by the U.S. Department of Labor. The index is used as a measure of the increase in the cost of living (economic inflation). Contingency Account – Account in which funds are set aside for emergency and exceptional expenditures that may become necessary during the year and which have not otherwise been provided for in the context of the annual operating budget.

Budget – A financial plan containing estimated expenditures and resources covering a fiscal year.

Budget Adjustment Transfer – the transfer of funds between line accounts within a function or across functional areas in accordance with policy. Authority is granted by Town Council to Budget Officer/Designee. Budget Amendment – A revision of the adopted budget that, when approved by the Town Council, replaces the original provision. Budget amendments occur throughout the fiscal year as spending priorities shift. Budget Calendar – The schedule of key dates which the Town follows in the preparation and adoption of the budget. Budget Document – The official written statement prepared by the Town’s staff and presented to the Town Council containing the proposed financial plan for the fiscal year. Budget Message – A written summary of the proposed budget to the Town Council which discusses major budget issues and recommendations. Budget Ordinance – The official enactment by the Council establishing the legal authority for staff to obligate and expend funds.

CAFR – Comprehensive Annual Financial Report. The official annual report of a government.

Capital Improvement Plan (CIP) – A plan of proposed capital outlay to be incurred each year over a fixed number of years to meet capital needs.

Debt Service – Payment of interest and repayment of principal on Town debt.

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