FY2021 Budget

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. Grants – Contributions or gifts of cash or other assets from another government to be used or expended for a specified purpose, activity or facility.

Local Government Budget and Fiscal Control Act – General Statute of the State of North Carolina governing budgetary and fiscal affairs of local governments. Local Government Commission (LGC) – A division of the North Carolina Department of State Treasurer that is primarily responsible for the approval, sale, and delivery of local government bonds and notes as well as monitoring certain fiscal and accounting standards.

In Lieu of Taxes – A contribution by benefactors of Town services who are tax exempt.

Mission – A broad statement outlining the Town’s purpose for existing.

Interest – Compensation for the use of borrowed money, generally expressed as an annual percentage of the principal amount.

Modified Accrual Basis – A method for accounting for the receipt and expenditure of funds whereby revenues are recorded when they become measurable and available and expenditures are recorded when the liability is incurred.

Interfund Transfers – The movement of moneys between funds of the same governmental entity. Interfund Loan - The loan of moneys between funds of the same governmental entity for cash flow purposes with full intent to reimburse. Intergovernmental Revenue – Revenue received from another government for general purposes or special intent. Law Enforcement Officer’s (LEO) Special Separation Allowance – A single-employer defined benefit plan that provides retirement benefits to the Town’s qualified sworn law enforcement officers.

Moody’s Investor Service – A recognized bond rating agency.

Net Bonded Debt – The amount calculated as gross bonded debt less debt service monies available at year-end less debt payable from Enterprise Revenues, which ultimately equates to amounts to be repaid through property taxes.

North Carolina Municipal Council - A recognized bond rating agency.

Objective – a statement of specific direction, purpose or intent to be accomplished by staff within a program. Operating Budget – Includes all funds except those accounted for in the capital budget. The Operating Budget is adopted by the Town Council by budget ordinance amendment on a fiscal year basis. Operating Expenses – The cost of contractual services, materials, supplies and other expenses not related to personnel expenses and capital projects.

Lease – A contract for temporary use of equipment or facilities at a negotiated price.

Levy – To impose taxes for the support of government services and activities.

Liabilities – Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.

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