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HomeMy WebLinkAbout17 - Glossary/IndexGLOSSARY MYOF GEORGETOWN %1QFounded in 1848 Glossary Accrual Accounting - A basis of accounting in which revenues are recognized in the accounting period in which they are earned, and expenses are recognized in the period in which they are incurred. Administrative Charges - The charges imposed upon a fund for support services provided by another fund. For example, the Accounting Department (General Fund ) provides services to the Electric Fund, therefore the General Fund charges the Electric Fund for these services. Adopted - Adopted, as used in fund summaries and department and division summaries within the budget document, represents the budget as approved by formal action of the City Council which sets the spending limits for the fiscal year. Ad Valorem - In proportion to value. A basis for levy of taxes on property. Annual Operating Plan - The Century Plan requires the preparation and adoption of an annual operating plan, or budget, that focuses on the Policies, Ends and Means of the Century Plan as a way to account for projects and work activities initiated by the City. The Annual Operating Plan acts as the City's short range guideline for revenue projections, cost of service budgeting and project planning and demonstrates incremental progress towards the implementation of the Century Plan. The Annual Operating Plan includes programs, projects and work activities for the one, two and five year time horizons. Appropriation - An authorization made by the City Council through an approved budget which permits the City to incur obligations and to make expenditures of resources. Appropriations lapse at the end of the fiscal year. Assessed Valuation - A valuation set upon real estate or other property by the County Appraisal District to be used as a basis for levying taxes. Asset - Resources owned or held which have monetary value Audit - A comprehensive review of the manner in which the government's resources were actually utilized. A certified public accountant issues an opinion over the presentation of financial statements, tests the controls over the safekeeping of assets and makes recommendations for improvements where necessary. Balance Sheet - A financial statement that discloses the assets, liabilities, reserves and balances of a specific fund as of a specific date. Base Budget - The on-going expense for personnel, operating services and the replacement of supplies and equipment to maintain service levels. The base budget does not include new programs or projects, which are approved on an individual basis. Bond - A written promise, generally under seal, to pay a specified sum of money, called the face value, at a fixed time in the future, called the date of maturity, and carrying interest at a fixed rate, usually payable periodically. The difference between a note and a bond is that the latter usually runs for a longer period of time and requires greater legal formality. GLOSSARY/INDEX 394 ANNUAL OPERATING PLAN ELEMENT 1996/97 Budget - A plan of operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Budget Year - The fiscal year of the City which begins October 1 and ends September 30. Capital Budget - A plan of proposed capital outlays and the means of financing them for the current fiscal period. Capital Or Capital Outlay - See the Capitalization Policy in this Budget for a definition of this term. Capital Improvement Program - The Capital Improvement Program (CIP) is a comprehensive plan of capital investment projects which identifies priorities as to need, method of financing, and project costs and revenues that will result during a five year period. The program is a guide for identifying current and future fiscal year requirements and becomes the basis for determinig the annual capital budget. Capital Recovery Fees - Capital Recovery Fees are developer paid infrastructure fees adopted under state law or as part of a development agreement. Capital Replacement Fund - Vehicle which allows purchase of operating capital items on a long -tern basis through budgeted annual payments and transfers during the fiscal year. The City's Fleet and Information Services Internal Service Funds act as capital replacement funds. Cash Accounting - A basis of accounting in which transactions are recorded when cash is either received or expended. Century Plan - The City's comprehensive plan that acts as a cornerstone for the City's present and future development and reflects the aspirations of the citizens for their City and describes an ongoing process by which Georgetown will strive to enhance its quality of life. The Century Plan is currently in effect until 2010 and contains the Policy Plan, which contains the overriding policies and administrative structure of the Plan and the Functional Plan elements, which address specific elements is detail. City Charter - The document that establishes the City as an incorporated political subdivision (municipal government) in accordance with the statutes of the State of Texas. The charter provides the form, roles and powers of the municipal government that is the City of Georgetown. Contingency - A budgetary appropriation reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted for. The primary contingency account requires City Council approval for all expenditures. Contingency Reserves - A portion of the budgeted ending fund balance or working capital that is not available for appropriation. The intent of the reserves are to provide flexibility, should actual revenues fall short of budgeted revenues and to provide adequate resources to implement budgeted expenditures without regard to the actual cash flow of the fund. Coverage Ratio - A term defined by revenue bond indenture. Refers to the ratio of net revenues of the electric, water and wastewater systems, after all maintenance and operations expenses are considered, to total debt service. The minimum ratio required by the current bond indenture is 1.50. GLOSSARY/INDEX ANNUAL OPERATING PLAN ELEMENT 1996/97 395 Debt Service - The City's obligation to pay principal and interest on bonded debt. A. Self -Supported Debt - Debt for which the City has pledged a repayment source separate from its general tax revenues (e.g. stormwater bonds repaid from stormwater drainage fees.) B. Tax Supported - Debt for which the City has pledged a repayment from its property taxes. Delinquent Taxes - Taxes that remain unpaid after the date on which a penalty for nonpayment is attached. Property tax statements are mailed out in October and become delinquent if unpaid by January 31. Department - A specific functional area within a City division. Depreciation - The process of estimating and recording the expired useful -life of a fixed asset which is used to distribute its cost over its revenue producing years. - Division - An administrative unit of the City having management responsibility for a group of departments. Effective Tax Rate - Texas law prescribes a formula for calculating the effective tax rate for cities. The net effect of the formula is to produce a tax rate that goes down when property values rise (and vice versa) to generate a rate that produces approximately the same revenue as the year before. The formula makes adjustments for additional debt service, newly annexed property, and newly constructed property. If the tax rate is raised by three percent or more over the prior year's effective tax rate, State law requires that special notices must be posted and published. If the increase is more than 8%, the increase above 8% is subject to a possible rollback election by the voters. Employee Benefits - For the purpose of budgeting, this term refers to the City's costs of health insurance, pension contributions, social security contributions, workers' compensation and unemployment insurance costs. Encumbrance - Any commitment of funds against an appropriation. It may be in the form of a purchase order or a contract. Encumbrance accounting is formally integrated into the accounting system for expenditure control purposes. An encumbrance differs from an account payable as follows: an account payable represents a legal liability to pay and results from the goods and/or services requested in a purchase order or contract having been delivered to the City. Until such time as the goods and/or services are delivered, the commitment is referred to as an encumbrance. End - Part of the "Ends and Mean's" concept adopted by the City Council to represent an improved way to manage the City. End's are specific targets based upon the 13 policies found in the Century Plan - Policy Plan. There is at least one end for each policy area. These statements allow the City organization to focus first on a finalrp oduct such as "a dynamic and positive business climate" rather than on therod cess of making that product, such as maintaining sewer lines, planning downtown improvements and keeping emergency service response times low. Enterprise Fund - A fund established to finance and account for operations (1) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (2) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purpose. GLOSSARY/INDEX 396 ANNUAL OPERATING PLAN ELEMENT 1996197 Expenditures - If the accounts are kept on the accrual basis this term designates total charges incurred, whether paid or unpaid, including expenses, provision for retirement of debt not reported as liability of the fund from which retired, and capital outlays. If accounts are kept on the cash basis, the term covers only actual disbursements for these purposes. Encumbrances are not considered expenditures. Expense - Charges incurred, whether paid or unpaid, for operation, maintenance, and interest, and other charges which are presumed to benefit the current fiscal period. Legal provisions sometimes make it necessary to treat as expenses charges whose benefits extend over future periods. Fiscal Year - An accounting period, typically twelve months, to which the annual budget applies and at the end of which a city determines its financial position and results of operations. The City's fiscal year is October 1 through September 30. Fixed Assets - Assets of a long-term character which are intended to continue to be held or used, such as land, buildings, machinery, furniture and other equipment. Full Time Equivalent (FTE) - A part-time position converted to the decimal equivalent of a full-time position based on 2,080 hours per year, or a full value of one for a full-time position. Functional Plan - Elements of the Century Plan which describe 15 policy plan categories that detail the manner in which the Policy Plan will be fulfilled. City Council has adopted to date four Functional Plan elements: Economic Development Strategic Plan, Development Plan, Parks and Recreation Plan and Facilities and Services Plan. The preparation and adoption of the Functional Plans, including Land Use, Transpiration, Utilities, Environmental, Citizen Participation, Housing, Health and Human Services, Historic Preservation, Airport, Annexation, Urban Design and Capital Improvements, are to be completed in subsequent years. Fund - An independent fiscal and accounting entity with a self -balancing set of accounts recording cash and/or other resources, together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on in accordance with special regulations, restrictions, or limitations. Fund Balance - The excess of a fund's assets over its liabilities and reserves. Funding Source - Identifies the source of revenue to fund appropriations. General Fund - The fund that is available for any legal authorized purpose and which is therefore used to account for all revenues and all activities except those required to be accounted for in another fund. Note: The General Fund is used to finance the ordinary operations of a governmental unit. Generally Accepted Accounting Principles (GAAP) - The uniform minimum standards and guidelines for financial accounting and reporting. The primary authoritative body on the application of GAAP to state and local governments is the Governmental Accounting Standards Board (GASB). General Obligation Debt - Tax supported bonded debt which is backed by the full faith and credit of the City. Grant - A contribution by one governmental unit to another. The contribution is usually made to aid in the support of a specified function (for example, education), but it is sometimes also for general purposes. GLOSSARY/INDEX ANNUAL OPERATING PLAN ELEMENT 1996/97 397 Infrastructure - The assets that are immovable and of value only to the govemment unit such as streets, bridges, sidewalks, and the electric, water, wastewater and drainage systems, which are installed for the common good. Internal Service Fund - A fund established to finance and account for services and commodities furnished by a designated department or agency to other departments or agencies within a single govemmental unit or to other governmental units. Amounts expended by the fund are restored thereto, either from operating earnings or by transfers from other funds, so that the original fund capital is kept intact. Means - The method, or process, by which the City Manager and the City of Georgetown organization plans to achieve the Ends specified by the City Council. By allowing City staff to focus on the means of the issue, the City Council is freed to discuss and define the long term direction of the City, its ends. Modified Accrual Accounting - A basis of accounting in which expenditures are accrued but revenues are accounted for when it becomes measurable and available. Operating Budget - This budget, associated with providing on-going services to citizens, includes general expenditures such as personal services, professional services, maintenance costs, supplies and operating capital items. Personnel Expenditures - For the purpose.of budgeting, this term refers to all wages and related items: regular pay, premium pay, longevity pay, social security, life insurance, retirement plan contributions, health insurance and workers' compensation insurance. Policy Plan - A part of the Century Plan that provides a general background for the plan and sets the policies, ends and means which will guide the City's actions until the year 2010. Program - A group of related activities performed by one or more organizational units for the purpose of accomplishing a function for which the City is responsible. Property Taxes - Used to describe all revenue received in a period from current taxes and delinquent taxes. Property taxes are levied on both real and personal property according to the property's valuation and the tax rate. Revenue - The yield of taxes and other monetary resources that the City collects and receives into the treasury for public use. For those revenues which are recorded on the accrual basis, this term designates additions to assets which (a) do not increase any liability; (b) do not represent the recovery of an expenditure; © do not represent contributions of fund capital in enterprise and internal service funds. The same definition applies to those cases where revenue are recorded on the modified accrual or cash basis, except that additions would be partially or entirely to cash. Revenue Bonds - Bonds of the City which are supported by the revenue generating capacity of the water and wastewater system. Service Improvement Program (SIP) Fees - Charges paid, on a per unit cost basis, by a developer (currently Del Webb Corporation only) for a portion of the cost of infrastructure improvements such as fire protection, road improvements, electric, wastewater and water system improvements needed to service a development. Fees are set as part of a Council approved development agreement. GLOSSARY/INDEX 398 ANNUAL OPERATING PLAN ELEMENT 1996/97 Special Revenue Fund - A fund used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or for major capital projects) that are legally restricted to expenditure for specified purposes. Surplus - The excess of the assets of a fund over its liabilities; or if the fund has other resources and obligations; the excess of resources over the obligations. The term should not be used without a properly descriptive adjective unless its meaning is apparent from the context. See also Fund Balance. Tax Base - The total value of all real, personal and mineral property in the City as of January 1 st of each year, as certified by the County Appraisal Board. The tax base represents net value after all exemptions. Tax Levy - The resultant product when the tax rate per one hundred dollars is multiplied by the tax base. Tax Rate - Total tax rate is set by Council and is made up of two components: debt service and operations rates. It is the amount levied for each $100 of assessed valuation. Tax ROTI - The official list showing the amount of taxes levied against each taxpayer or property. Transfers In/Out - Amounts transferred from one fund to another to assist in financing the services or programs for the recipient fund. Unencumbered Fund Balance - For budget purposes, the unencumbered fund balance is the amount of undesignated fund balance of a fund available for allocation. User Charges - The payment of a fee for direct receipt of a public service by the party benefiting from the service. Working Capital - For enterprise funds, the excess of current assets over current liabilities. Working capital of a fund is important because budgeted expenditures of the fund must be provided for from cash receipts during the year supplemented by working capital carried over from prior years, if any. 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GLOSSARY/INDEX 400 ANNUAL OPERATING PLAN ELEMENT 1996/97 INDEX CITY OF GEORGETOWN Founded in 1848 Index Accounting.................................................................. 175 Advisory Boards & Commissions ................................................. 389 Airport..................................................................... 131 Animal Services.............................................................. 135 Annual Operating Plan Preparation ................................................ 22 Capital Improvements - Summary & Maps for 1996/97 ................................. 59 Capital Improvement Projects - Five Year Plan ...................................... 315 City Attomey's Office.......................................................... 259 City Council................................................................. 255 City Managers Office......................................................... 263 Community Owned Utilities Administration ........................................... 79 Community Profile.............................................................. 1 Community Services Administration ............................................... 123 Contingency Reserve Requirements Worksheet ..................................... 383 Convention & Visitors Bureau ................................................... 139 Councilmembers (photos)....................................................... xii Customer Service (Meter Readers) ................................................ 83 Debt Management & Policy ..................................................... 323 Development Process Team .................................................... 157 Development Support (formerly Planning Services) ................................... 163 Electric..................................................................... 88 EnergyServices .............................................................. 87 Employee & Organizational Services .............................................. 267 Ends & Means - Community Owned Utilities ......................................... 72 Ends & Means - Community Services ............................................. 120 Ends & Means - Development Services ............................................ 152 Ends & Means - Explanation of Ends & Means ....................................... 16 Ends & Means - Finance & Administration .......................................... 172 Ends & Means - Fire Services ................................................... 208 Ends & Means - Information Resources ........................................... 228 Ends & Means - List of Ends & Means .............................................. 17 Ends & Means - Management Services ............................................ 250 Ends & Means - Parks & Recreation .............................................. 276 Ends & Means -Police Services ................................................. 292 Facilities Maintenance......................................................... 183 Finance Administration........................................................ 179 Financial & Budget Policies ..................................................... 367 Fire Administration............................................................ 211 Fire Operations............................................................... 215 Fire Prevention ............................................................... 219 Fire Training & Emergency Management ........................................... 223 Fleet Management............................................................ 189 Fund Summaries.............................................................. 37 General Government Contracts .................................................. 127 General Debt Service (General Obligation Debt) ..................................... 324 Glossary................................................................... 393 GLOSSARWINDEX 402 ANNUAL OPERATING PLAN ELEMENT 1996/97 Human Resources ........................... (See Employee & Organizational Services) Information Resources Management .............................................. 231 Information Services.......................................................... 235 Inspection Services (formerly Building Inspection Services) ............................. 167 Municipal Court .............................................................. 195 Ordinances................................................................. 335 Organization................................................................. 11 Parks..................................................................... 279 PatrolServices.............................................................. 307 Personnel.................................................................. 333 Police Administration.......................................................... 295 Professional Standards........................................................ 311 Programs, Projects & Equipment ................................................. 343 ProposedDebt............................................................... 331 Public Library ................................................................ 243 Pump Maintenance............................................................ 93 Purchasing & Properties....................................................... 199 Recreation.................................................................. 285 Revenue & Expenditure Summary ................................................. 23 Safety Services........................................................... 271 Sanitation.................................................................. 145 Special Operations........................................................... 299 Stormwater Drainage .......................................................... 102 Streets..................................................................... 104 Systems Engineering........................................................... 97 Transmittal Letter...............................................................i Transportation Services........................................................ 101 Utility Debt Service........................................................... 328 UtilityOffice................................................................. 203 Utility Rates Schedule......................................................... 385 Water Services.............................................................. 109 Water Distribution...................................................... 110 Water Treatment Facilities ................................................ 112 Water Contracts........................................................ 113 Wastewater Collection ................................................... 115 Wastewater Treatment Facilities ........................................... 117 Wastewater Contracts ................................................... 118 GLOSSARY/INDEX ANNUAL OPERATING PLAN ELEMENT 1996/97 403 CITY OF GEORGETOWN The following awards attest to the recognized excellence of the various operations of the government. 1996 1993 (cont.) Government Finance Officers Association Texas Chapter of American Planning Association Distinguished Budget Presentation Award for the City's Annual Community of the Year Operating Plan and Program of Services for the Fiscal Years 1990 through 1996 (Seven consecutive years) Texas Department of Housing and Community Affairs Award for Affordable Housing & Community Partnerships National Recreation & Parks Association Gold Medal Award Finalist Texas Department of Transportation, Division of Aviation Airport Manager of the Year for the State of Texas Sam Walton Community Leader Award American Hometown Leadership Award to Mayor Pro Tem - Texas Natural Resource Conservation Commission Ferd-T_onn Clean City 2000 - Governor's Award for Environmental Excellence TX Natural Resource Conservation Commission Texas Recreation and Parks Society Pinnacle Award Gold Medal Award for best parks and recreation department for Operation & Maintenance Award - Small - Non-Discharging Plant - a city our size Berry Creek Wastewater Treatment Plant Texas Water Commission Texas Public Power Association Operation and Maintenance Excellence Award for best Electric System Achievement Award wastewater treatment system of its size in Texas 1995 1992 3 CMA Association of Wholesale Customers of the LCRA Silver Circle Award - Marketing Communications Plan for Cities System Achievement Award for Outstanding Electric Utility Under 25,000 Texas Downtown Association American Planning Association Best Rehabilitation Project for renovation of the 1930's Post Outstanding Planning Award for Comprehensive Planning in a Small Office (Municipal Office Building) Jurisdiction for the Georgetown Century Plan Texas Historical Foundation Police Executive Research Forum Citation of Merit for renovation of the Municipal Office Building Herman Goldstein Excellence in Problem Solving Award Texas Water Commission Sam Walton Community Leader Award Operation and Maintenance Excellence Award for best American Hometown Leadership Award to Mayor Leo Wood wastewater treatment system of its size in Texas Texas Public Power Association 1991 "Best Newsletter" for City with less than 50,000 customers Best of Austin Award and Evaluation Texas Water Utilities Association Award of Excellence for the Georgetown Convention & Visitors Best Tasting Water - Surface Water (Three consecutive years) Bureau publication "A Visitor's Guide to Georgetown" 1994 1990 Government Finance Officers Association Texas Department of Commerce Certificate of Achievement for Excellence in Financial Reporting - Certificate of Excellence designation as an Enterprise Zone Comprehensive Annual Financial Report for Fiscal Years 1987 through 1994 (Eight consecutive years) U.S. Environmental Protection Agency - Region W Regional Administrators Environmental Excellence Award for 1993 Public Water Supply Excellence in Operation Maintenance and Management of the Drinking Water System Association of Wholesale Customers of the LCRA Distinguished Service Award TX Chapter of American Society of Landscape Architects Merit Award for the Georgetown Century Plan Lower Colorado River Authority Environmental Award - Energy Conservation Texas Chapter of the American Planning Association Comprehensive Planning Award Lower Colorado River Authority Environmental Award for Recycling Programs at the Georgetown Public Collection Station