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FY 2015 Proposed Budget Page 286 of 297
Acronyms
The following is a list of acronyms used throughout the text of
the budget document. A definition can be found in the
Glossary immediately following this section.
CAFR . ..................Comprehensive Annual Financial Report
CIP ........... ........................Capital Improvement Program
CPI .............. ............................... Consumer Price Index
COLA ..... ............................... Cost of Living Adjustment
EPA ............ ..................Environmental Protection Agency
EAR ......... .....................Evaluation and Appraisal Report
FEMA .............Federal Emergency Management Association
FDEP ........... Florida Department of Environmental Protection
FDLE ....................Florida Department of Law Enforcement
FDOT ........................Florida Department of Transportation
FLC .................. ........................Florida League of Cities
FMIT .... ........................Florida Municipal Insurance Trust
FRDAP ... Florida Recreation Development Assistance Program
FTE .................. ...........................Full Time Equivalent
GAAP .................Generally Accepted Accounting Principles
GASB ................Governmental Accounting Standards Board
GFOA ..................Government Finance Officers Association
IAFF .. ...................International Association of Fire Fighters
ICMA ................International City Management Association
IT ......................... ....................Information Technology
LCIR ... Legislative Committee on Intergovernmental Relations
LOS ......................... ..........................Level of Service
NIMS ......................National Incident Management System
NPDES ........ National Pollutant Discharge Elimination System
OPEB ... ..........................Other Post - Employment Benefits
RBR ......................... ...........................Roll -Back Rate
SFWMD ............... South Florida Water Management District
SOP ............ .......................Standard Operating Procedure
TRIM ........................ ..........................Truth In Millage
FY 2015 Proposed Budget Page 287 of 297
Glossary
The definitions of terms listed are provided to assist the reader
in the understanding of terminology used throughout the text of
the budget document.
Account:
A term used to identify an individual asset, liability,
expenditure, control, revenue control, encumbrance control or
fund balance.
Accountability:
The condition, quality, fact or instance of being obliged to
report for actions or outcomes.
Accounting System:
The total structure of records and procedures which discover,
record, classify, summarize and report information on the
financial position and results of operations of a government or
any of its funds, fund types, balanced account groups, or
organizational components.
Accrual Basis of Accounting:
The basis of accounting under which transactions are
recognized when they occur, regardless of the timing of the
related cash flows.
Accumulated Depreciation:
The total depreciation taken for an asset since it was placed in
service.
Actuarial:
A methodology that makes determinations of required
contributions to achieve future funding levels that addresses
risk and time.
Ad Valorem Taxes:
A tax based on the assessed value of property, to include real
and personal property.
Adopted Budget:
The budget as it is approved by the Village Council prior to the
beginning of each fiscal year.
Amended Budget:
The adopted budget that incorporates all operating transfers
and approved budget amendments (changes in the budget total
that are approved subsequent to initial adoption).
Annexation:
The incorporation of land into an existing city with a resulting
change in the boundaries of that city.
Appropriation:
An authorization granted by a legislative body to make
expenditures and to incur obligations for specific purposes. An
appropriation is limited in amount to the time it may be
expended.
Assessed Valuation:
A valuation set upon real estate or other property by the county
assessor and the state as a basis for levying taxes.
Asset:
Resources owned or held by a government which has monetary
value.
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Assigned Fund Balance:
Fund Balance reporting category which refers to amounts a
government intends to issue for a specific purpose.
Audit:
A test of management's accounting system to determine the
extent to which internal accounting controls are both available
and being used. It concludes in a written opinion of its
findings.
Available Fund Balance:
Funds remaining from the prior year which are available for
appropriation and expenditure in the current year.
Balance Sheet:
A statement of financial condition as of a given date.
Balanced Budget:
A budget in which planned funds available equal planned
expenditures.
Budget:
An annual financial plan that identifies revenues, specifies the
type and level of services to be provided and establishes the
amount of money which can be spent.
Budget Amendment:
The process by which unanticipated changes in revenue or
expenditures are made a part of the budget, thereby amending
it.
Budget Calendar:
A schedule of key dates which the Village follows in the
preparation, adoption and administration of the budget.
Budget Message:
A general discussion of the proposed budget as presented in
writing by the Village Manager to the Village Council.
Budget Transfer:
An action which changes budgeted amounts at the department,
division, and /or object code level of control with offsetting
increases and decreases in budgeted line items.
Budgetary Basis:
The basis of accounting used to estimate financing sources and
uses in the budget. This generally takes one of three forms:
GAAP, cash or modified accrual.
Budgetary Control:
The management and control of the budget within limitation of
the approved appropriations and available resources.
Budget Document:
The official written statement - document which presents the
proposed budget to the council /legislative body.
Budget Summary:
Categories of expenditures
function and category.
or revenue classified by major
Capital Improvement Plan (CIP):
A multi -year plan of proposed capital outlays to be incurred
each year over a period of five years to meet capital needs
arising from the Village's long -term needs. The minimum
threshold for a capital outlay to be included in the CIP is
$10,000.
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Capital Outlay:
The cost(s) associated with the acquisition of land, land
improvements, buildings, building improvements, construction
in progress, machinery and equipment, vehicles and
infrastructure, and other tangible or intangible assets that are
used in operations and that have an initial useful life extending
beyond a single reporting period.
Capital Projects Fund:
Type of Governmental Fund established to account for the
acquisition or construction of major capital facilities, other than
those accounted for in proprietary or trust funds.
Comprehensive Annual Financial Report (CAFR):
Prepared at the close of each fiscal year to show the actual
audited condition of the Village's funds and serve as the
official public record of the Village's financial status and
activities.
Committed Fund Balance:
Fund Balance reporting category which refers to amounts that
can only be used for specific purposes pursuant to constraints
imposed by formal action of the government's highest level of
decision - making authority.
Consumer Price Index (CPI):
A statistical description of price levels provided by the United
States Department of Labor. The index is used as a measure of
the increase in the cost of living.
Contingency:
An appropriation of funds
occur during the fiscal year.
to cover unforeseen events that
Contractual Services:
A cost related to a legal agreement.
Cost -of- Living Adjustment (Market Adjustment):
An increase in salaries to offset the adverse effect of inflation
on compensation.
Debt Limit:
The maximum amount of gross or net debt which is legally
permitted.
Debt Ratios:
Comparative statistics showing the relationship between the
issuer's outstanding debt and such factors as its tax base,
income or population.
Debt Service:
Principal and interest requirements on outstanding debt
according to a predetermined payment schedule.
Deficit:
The excess of the liabilities of a fund over its assets. The
excess of expenditures over revenues during an accounting
period.
Defined Benefit Plan:
A pension plan that has terms specifying the amount of benefits
to be provided after separation of employment; to be
distinguished from a defined contribution plan in which the
plan specifies the amount of the contribution to the plan.
Department:
A major work unit or functional unit having related activities
aimed at accomplishing a major service or regulatory program
for which the Village is responsible.
Depreciation:
The decrease in value of physical assets due to use and the
passage of time.
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Division:
A section of a department or government that is responsible for
dealing with a particular area of policy or administration, or a
particular task or function.
Economic Development:
The process of attracting new businesses by use of incentives
or innovative financing methods.
Effectiveness:
Producing a decided, decisive or desired effect.
Efficiency:
Effective operation as measured by a comparison of production
with cost.
EmWover Contribution:
A term used to describe contributions actually made by the
employer in relation to the annual required contribution (ARC)
of the employer (in the context of pension benefits).
Encumbrance:
Obligations in the form of purchase orders, which are
chargeable to an appropriation and for which a part of the
appropriation is reserved. They cease to be encumbrances
when paid or when the actual liability is set up.
Enterprise Fund:
A self supporting fund used to account for operations that
provide a service to citizens financed primarily by a user
charge. Net income is sufficient for capital maintenance,
public policy, management control, accountability or other
purposes.
Environmental Protection Agency (EPA):
The Federal agency charged with protecting human health and
with safeguarding the natural environment: air, water, and land.
Evaluation and Appraisal Report (EAR):
A State - mandated report which evaluates how successful a
community has been in addressing major community land -use
planning issues through implementation of its comprehensive
plan.
Expenditures:
Decreases in net financial resources. Expenditures include
current operating expenses which require the current or future
use of net current assets, debt service and capital outlay.
Federal Emergency Management Association (FEMA):
Agency of the US Government tasked with Disaster
Mitigation, Preparedness, Response & Recovery planning.
Fiduciary Funds:
Trust and /or agency funds used to account for assets held by
the Village in a trustee capacity or as an agent for individuals,
private organizations, other governments, and /or other funds.
Fines and Forfeitures:
Revenues derived from penalties imposed for the commission
of statutory offenses, violation of lawful administrative rules
and regulations and for neglect of official duty; for example,
confiscated property.
Fiscal Year (FY):
A twelve month period of time to which the annual budget
applies and at the end of which a government determines its
financial position and results of operations. The fiscal year for
the Village is October 1 to September 30'
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Fixed Assets:
Assets of a long -term character which are intended to continue
to be held or used, such as land, buildings, improvements other
than buildings, and machinery and equipment.
Florida Department of Environmental Protection (FDEP):
A federal agency charged with proposing and enforcing
environmental law.
Florida Department of Transportation (FDOT):
The agency charged with the establishment, maintenance, and
regulation of public transportation in the state of Florida.
Florida Department of Revenue (FDOR):
The lead agency in state government for the collection of
general tax administration.
Florida League of Cities (FLO:
Comprised of City officials who wished to unite the municipal
governments in Florida for the purpose of shaping legislation,
sharing the advantages of cooperative action, and exchanging
ideas and experiences established the League in 1922.
Florida Municipal Insurance Trust (FMIT):
A trust designed to provide cost effective insurance coverage
for Florida's not for profit agencies.
Florida Recreation Development Assistance Program
FRDAP :
A competitive grant program that provides financial assistance
to local governments for development or acquisition of land for
public outdoor recreational purposes.
Franchise Fees:
Fees levied on a corporation in return for granting a privilege
sanctioning a monopoly or permitting the use of public
property, usually subject to regulation by the governing body.
FTE:
Full -Time Equivalent, which is calculated on the basis of the
number of hours that have been budgeted for a particular
position.
Full -Time Position:
A position which qualifies for full Village benefits, usually
required to work 40 hours per week.
Fund:
An independent fiscal and accounting entity with 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
specific activities or attaining certain objectives.
Fund Balance:
The fund equity of governmental funds. Changes in fund
balances are the result of the difference of revenues to
expenditures.
Fund Type:
In governmental accounting, all funds are classified into eight
generic fund types; General, Special Revenue, Debt Service,
Capital Projects, Special Assessment, Enterprise, Internal
Service and Trust & Agency.
General Fund:
A fund used to account for the receipt and expenditure of
resources traditionally associated with local government.
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General Obligation Bonds:
When a government pledges its full faith and credit to the
repayment of the bonds it issues, those bonds are referred to as
general obligation bonds.
General Revenue:
The revenues of a government other than those derived from
and retained in an enterprise.
Generally Accepted Accounting Principles (GAAP):
Uniform minimum standards of /and guidelines for financial
accounting and reporting. They govern the form and content of
the basic financial statement of an entity. GAAP encompasses
the conventions, rules, and procedures necessary to define
accepted accounting principles at a particular time. They
include not only broad guidelines of general application, but
also detailed practices and procedures.
Goal:
A statement of broad direction, purpose or intent based on the
needs of a community. A goal is general and timeless; that is,
it is not concerned with a specific achievement in a given
period.
Government Finance Officers Association (GFOA):
The professional association of state /provincial and local
finance officers in the United States and Canada.
Governmental Accounting Standards Board (GASB):
An established national board, which governs financial
reporting standards on state and local government levels
throughout the United States of America, with its main
headquarters in Chicago, IL.
Governmental Funds:
Funds that account for the activities of a local government's
operations. They can be classified into four generic fund types:
general fund, special revenue funds, capital projects funds, and
debt service funds.
Grants:
Contributions or gifts of cash or other assets from another
government to be used or expended for a specific purpose,
activity or facility.
Interfund Transfers:
The movement of moneys between the funds of a
governmental entity.
Intergovernmental Revenues:
Revenues collected by one government and distributed to
another level of government.
International City Management Association (ICMA):
The professional and educational organization for chief
appointed managers, administrators and assistants in cities,
towns, counties and regional entities.
Infrastructure:
The physical assets of a government (i.e. streets, water, sewer,
public buildings and parks).
Legislative Committee on Intergovernmental Relations
LCIR :
The State of Florida's Legislative Committee on
Intergovernmental Relations; provides some intergovernmental
revenue estimates for budgetary purposes.
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Level of Service (LOS):
Services or products which comprise actual or expected output
of a given program.
Local Option Gas Tax:
A tax established in 1983 to fund transportation- related
improvements.
Long -Term Debt:
Debt liability due after one year or longer.
Maior Fund:
A fund whose revenues, expenditures /expenses, assets, or
liabilities (excluding extraordinary items) are at least 10% of
corresponding totals for all governmental or enterprise funds
and at least 5% of the aggregate amount for all governmental
and enterprise funds for the same item.
Maximum Millne Rate:
The maximum millage that a county or municipality may levy
with a simple majority vote of the governing body; other voting
requirements will allow a municipality to adopt a millage rate
in excess of the maximum millage rate.
Mill:
The property tax rate which is based on the valuation of
property. A tax rate of one mill produces one dollar of taxes on
each $1,000 of assessed property valuation.
Millage:
Property tax levy stated in terms of dollars and cents for every
thousand dollars of assessed property value.
Mission:
The mission statement is a brief summary of why a program
exists and what it is trying to achieve. It tells what the
department does, who they do it for and why. The statement is
specific enough to describe the program's purpose but general
enough to last into the future.
Modified Accrual Basis:
The accrual basis of accounting adopted for the governmental
fund type. In this basis of accounting, expenditures are
recognized when the goods or services are received and
revenues, such as taxes, are recognized when measurable and
available to pay expenditures in the current period.
MUNIS:
The Village's financial software system
Municipality:
A primarily urban political unit having corporate status and
usually powers of self - government.
National Incident Management System (NIMS):
Core set of doctrine, concepts, principles, terminology, and
organizational processes that enable effective, efficient, and
collaborative incident management across all emergency
management and incident response organizations and
disciplines.
Non - major Fund:
A fund that does not meet the definition of a major fund (see
definition for major fund).
Non - operating Expenses:
Expenses which are not directly related to the fund's primary
service activities.
Non - operating Revenues:
Revenues which are incidental to, or by- products of, the fund's
primary service activities.
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Non - spendable Fund Balance:
Fund Balance reporting category which includes amounts that
are not in a spendable form or are required to be maintained
intact.
Objective:
A simply stated, readily measurable statement of the aim of
expected accomplishment within the fiscal year.
Operating Budget:
Plans of current expenditures and the proposed means of
financing them. The annual operating budget is the primary
means by which most of the financing acquisition, spending
and service delivery activities of a government are controlled.
The use of an annual operating budget is required by law.
Operating Expenses:
Expenses which are directly related to the fund's primary
service activities.
Operating Revenues:
Funds that the government received as income to pay for
ongoing operation. Includes such items as taxes, fees from
specific services, interest earnings and grant revenues.
Ordinance:
A formal legislative enactment by the governing board of a
municipality. If it is not in conflict with any higher form of
law, such as a state statute or constitutional provision, it has the
full force and effect of law within the boundaries of the
municipality to which it applies.
Original Budget:
The first complete appropriated budget which is approved at
the second public hearing in September.
Other Financing Sources:
Governmental fund general long -term debt proceeds, operating
transfers out, and material proceeds of fixed asset dispositions.
Such amounts are classified separately from revenues.
Other Post Employment Benefits (OPEB):
Post Employment Benefits other than pension benefits. OPEB
consist primarily of health care benefits, and may include other
benefits such as life insurance, long term care and similar
benefits.
Part -Time:
Employees who work less than 30 hours per week and are not
entitled to full -time employee benefits.
Pension Fund:
Account for the accumulation of resources to be used for
retirement benefit payments to the Village's employees.
Performance Measure:
Data collected to determine how effective and /or efficient a
program is in achieving its objectives.
Personnel Costs:
Costs directly associated with employees, including salaries
and fringe benefits.
Property Tax:
A tax levied on the assessed value of real property. This tax is
also known as Ad Valorem Tax.
Proprietary Fund Types:
Account for activities that are common in the private sector,
which the government operates in a manner similar to their
counterparts in the commercial world. The primary source of
revenues for this fund type is user charge. Proprietary funds
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can be classified into two fund types; enterprise funds and
internal service funds.
Public Hearing:
An open public meeting called by a recipient government to
provide all residents (without regard to taxpaying, voting
status, or handicap) with an opportunity to offer written and
oral comments regarding the subject to be discussed.
Purchase Order:
A document which authorizes the delivery of specified
merchandise or the rendering of certain services.
Reclassification:
The moving of an existing position from one personnel
classification to another based upon the different performance
of duties.
Reserves:
A portion of the fund balance or retained earnings legally
segregated for specific purposes.
RPenln +inn
A special or temporary order of a legislative body; an order of
a legislative body requiring less legal formality than an
ordinance or statute.
Restricted Fund Balance:
Fund Balance reporting category which includes amounts
constrained to specific purposes by their providers.
Retained Earnings:
An equity account reflecting the accumulated earnings of an
Enterprise or Internal Service fund.
Retirement Benefit Multiplier:
The rate applied to the average compensation multiplied by the
employee's years of accrual service to yield the amount
payable under the normal retirement pension.
Revenues:
Increases in governmental fund -type net current assets from
other than expenditure refunds and residual equity transfers.
Roll -Back Rate (RBR):
That millage rate that will generate the same Ad Valorem tax
Revenue as was levied during the prior year when calculated
against the current year's tax base exclusive of new
construction.
Service:
A specific deliverable provided to the public. It has a specific
budget, as well as performance measures to determine the
benefits received.
Solid Waste Authority:
The agency responsible for providing an integrated solid waste
management and recycling system for Palm Beach County,
Florida.
South Florida Water Management District (SFWMD):
The agency responsible for regional flood control, water supply
and water quality protection as well as ecosystem restoration.
Special Assessment:
A compulsory levy imposed on certain properties to defray part
or all of the cost of a specific improvement or service deemed
to primarily benefit those parties.
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Special Revenue Fund:
Fund used to account for the proceeds of specific revenue
sources which are restricted by law or policy to finance specific
activities.
Standard Operating Procedures (SOP'S):
A set of instructions having the force of a directive, covering
those features of operations that lend themselves to a definite
or standardized procedure without loss of effectiveness.
Statute:
A written law enacted by a duly organized and constituted
legislative body.
Surplus:
The excess of assets of a fund over its liabilities. The excess of
revenues over expenditures during an accounting period.
Tax:
A compulsory charge levied by a governmental unit for the
purpose of raising revenue. These revenues are used to pay for
services or improvements provided for the general public
benefit.
Taxable Value:
The assessed value of property minus the homestead exemption
and any other exemptions which may be applicable.
Temporary Position:
A position that is filled for a specific period of time, is not
permanent in nature, and does not qualify for regular Village
benefits.
Trust Funds:
Funds used to account for assets held by a government in a
trustee capacity for individuals, private organizations, other
government and /or other funds.
Truth in Millne (TRIM) :
The Florida TRIM serves to formalize the property tax levying
process by requiring a specific method of tax rate calculation,
form of notice, public hearing requirements and advertisement
specifications prior to the adoption of a budget tax rate.
Unassigned Fund Balance:
Fund balance that has not been assigned to other funds and has
not been restricted, committed or assigned to specific purposes
within the general fund.
User Charges:
The payment of a fee for direct receipt of a public service by
the party benefiting from the service.
Utility Taxes:
Taxes imposed by the Village on each and every purchase of a
public service within the corporate limits of the Village. Public
services include electricity, gas, fuel oil, telephone services and
telecommunications.
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