Glossary of Budget Terminology
ACTION PLAN : Short-term and long-term goals for each program designed to improve efficiency and effectiveness in service delivery as well as the quality of life in the community .
AD VALOREM TAXES : A tax based on value ( i . e ., a property tax ).
APPROPRIATION : A legal authorization granted by the Town Council for departments to make expenditures and to incur obligations for specific purposes ; this authorization is limited to the length of the fiscal year .
ASSESSED VALUATION : A valuation set upon real estate and certain items of personal property ( i . e ., vehicles and equipment used for business purposes ) by the County as the basis for levying taxes .
AUDIT : An independent evaluation of the accuracy of the Town ’ s financial statements , financial practices , and internal controls designed to ensure compliance with generally accepted accounting principles . Audits are conducted annually in accordance with state law .
ANNUAL COMPREHENSIVE FINANCIAL REPORT ( ACFR ): A report which sets out the financial position of the Town and outlines the financial effect of the previous year ’ s operations . Annual Comprehensive Financial Reports for a fiscal year ( July 1- June 30 ) are usually released the following autumn .
BASE BUDGET : The funding needed to provide the same level of services as provided in the preceding year .
BOND : An obligation issued by the Town as a method of borrowing large amounts of money for capital projects ; bonds are issued for fixed terms and have fixed interest rates .
BONDS AUTHORIZED AND UNISSUED : Bonds that have been legally authorized but not issued , which can be issued and sold by the Town Council following public hearings and approval from the Local Government Commission .
BONDED DEBT : The portion of indebtedness represented by outstanding bonds .
CAPITAL OUTLAY : Expenditure resulting in a replacement for or an addition to the Town ’ s general fixed assets ; for budget purposes , any purchase of capital with an estimated cost of $ 10,000 or more .
CAPITAL PROJECT : A project financed in whole or in part by the proceeds of bonds and / or a project involving the construction or acquisition of a capital asset . Capital projects may be funded through project ordinances which must be balanced , and which are designed to last through the duration of the project .
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