FY2018 Recommended Budget

Deficit – The amount by which expenditures exceed revenues during an accounting period.

Expenditure – The cost of goods or services whether payment has been made or not.

Department – An organizational unit within the Town which is functionally unique in its delivery of services or activities. Depreciation – Expiration in the service life of fixed assets, other than wasting assets, attributable to wear and tear, deterioration, action of the physical elements, inadequacy and obsolescence. The portion of the cost of a fixed asset, other than a wasting asset, charged as an expense during a particular period. In accounting for depreciation, the cost of a fixed asset, less any salvage value, is prorated over the estimated service life of such an asset, and each period is charged with a portion of the cost. Through this process, the entire cost of the asset is ultimately charged off as an expense. Designated Fund Balance – Monies over the years that remain unspent after all budgeted expenditures have been made, but which are reserved for specific purposes and are unavailable for appropriation. Effectiveness Measure – A performance measure identifying quality or extent to which an organization is obtaining its objectives (ex. Percentage of year waste/leaf collection points serviced on time) Efficiency Measure – A performance measure identifying inputs used per unit of output, or unit of cost(ex. Cost per ton of yard waste/leaves collected)

Fees – A general term used for any charge levied by the Town associated with providing a service or permitting an activity. Fiduciary Fund – A special classification fund used to account for assets held by the Town in a trustee capacity on behalf of outside parties, including other governments. Fiscal Year (FY) – A twelve month period which determines the time frame for financial reporting, budgeting, and accounting.

Fixed Assets – Long-lived tangible assets obtained or controlled as a result of past transactions, events or circumstances.

Fund – A fiscal entity with revenues and expenses that are segregated for the purpose of accounting for an activity(s) with common objectives.

Fund Balance – The excess of the assets of a fund over its liabilities.

GAAP – Generally accepted accounting principles. A uniform minimum standard used by state and local governments for financial recording and reporting; established by the accounting profession through the Governmental Accounting Standards Board. General Fund – A fund that accounts for most of the basic government services such as public safety, streets and highways, sanitation, parks and recreation, and general government services. General Obligation Bonds – Bonds issued by a government entity which are backed by its full faith, credit and unlimited taxing authority. Goal – a statement of Council direction, purpose or intent based on the needs of the community. A goal is general and timeless; that is, it is not concerned with a specific achievement in a given time period.

Encumbrance – The commitment of appropriated funds to purchase an item or service.

Enterprise Fund – A fund that accounts for operations that are financed and operated in a manner similar to private business enterprises. Operations are financed from charges to users for services provided.

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