FY23 FULL BUDGET REPORT ADOPTED

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. 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 Debt Service – Payment of interest and repayment of principal on Town debt. Deficit – The amount by which expenditures exceed revenues during an accounting period.

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 (i.e. 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 (i.e. Cost per ton of yard waste/leaves collected) 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 fromcharges to users for services provided. – Encumbrance – The commitment 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. Expenditure – The cost of goods or services whether payment has been made or not.

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