HomeMy WebLinkAbout48-Budget Glossary
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GLOSSARY OF BUDGET TERMS
Account: A subdivision within a fund for the purpose of classifying transactions.
Account Number: A numeric identification of the account. Typically a unique number or series
of numbers. The City of San Bernardino's number structure is comprised of three fields of
characters. They are as follows: Fund Number - Department Number - Object Code and looks
like (000-000-0000).
Adopted Budget: A budget which typically has been reviewed and "Adopted" (approved) by the
Mayor and Cornmon Council prior to the start of a fiscal year. The legal authority to expend
money for specified purposes in the fiscal year time period.
Appropriate: Set apart for, or assign to, a particular purpose or use.
Appropriation: An authorization by the Mayor and Cornmon Council to make expenditures and
to incur obligations for specific amounts and purposes within a specific time frame.
Appropriations Limit: As defined by Section 8 of Article xnm of the California Constitution,
enacted by the passage of Proposition 4 at the November 6, 1979, general election, the growth in
the level of certain appropriations from tax proceeds are generally limited to the level of the prior
year's appropriation limit as adjusted for changes in cost of living and population. Other
adjustments may be made for such reasons as the transfer of services from one government entity
to another.
Assessed Valuation: A percent of appraisal value assigned to real estate property for use as a
basis for levying property taxes.
Asset Forfeiture: The removal of money and property from persons involved in illegal criminal
activity.
Assessment: Charges made to parties for actual services or benefits received.
Assessment Districts: An area where fees are assessed by the City to cover the construction,
maintenance or service costs that have occurred in that specific area.
Audit: Scrutiny of the City's accounts by an independent auditing firm to determine whether the
City's financial statements are fairly presented in conformity with generally accepted accounting
principles.
Beginning Balance: Unencumbered and umeserved resources available in a fund from the prior
fiscal year after payment of prior fiscal year expenditures.
Bond: A written promise from a local government to repay a sum of money on a specific date at
a specified interest rate. Bonds are most frequently used to finance capital improvement projects.
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City of San Bernardino
Glossary of Budget Tenus
Budget: A fiscal plan of financial operation listing an estimate of proposed applications or
expenditures and the proposed means of financing them. The budget must be approved by the
Mayor and Common Council prior to the beginning of the fiscal year.
Budget Amendment: Any changes made to the Adopted Budget Document. (Administrative
Amendment - Changes to the budget that do not require the approval of the Mayor and Common
Council and may be approved administratively by the Director of Finance. Legislative
Amendment - Changes to the budget that require the approval of the Mayor and Common
Council and may not be approved administratively.
Budget Message/Transmittal Message: A message from the City Administrator to the Mayor
and Common Council which summarizes the budget and highlights the most important aspects of
the budget.
Budget Year: The Fiscal year for which the budget is being considered; fiscal year.
Budgeted Positions: Those ongoing positions approved in the final budget of the preceding
year.
Budgeted Reserve: The anticipated portion of a fund's balance designated by the Mayor and
Common Council as reserved for contingencies and not to be appropriated unless directed and
authorized by the Mayor and Common Council.
CAD/RMS System: (CAD) A Computer Aided Dispatch System used by the Police and Fire
Departments. (RMS) A Records Management System used by the Police Department.
Capital Outlay: Expenditures which result in the acquisition of, or addition to, fixed assets. A
capital item is tangible, durable, non-consumable, and has a useful life of more than one year and
a value of more than $500 per unit.
Capital Projects: A major long-term construction of, or improvements to, public physical
facilities.
Carryover: Process of carrying a budgeted and encumbered item from the current fiscal year to
the next fiscal year. The new fiscal year account will reflect the increased amount of the
carryover.
CATV: Cable TV Division of the City of San Bernardino. This division provides regulatory
oversight of the City's cable companies for franchise compliance, consumer protection, and
franchise renewal negotiations. It operates and programs two access channels, one public and one
educational for the community.
CDBG: Community Development Block Grant - Contributions received from the Federal
Govemment to be used or expended for a specific purpose or activity.
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City of San Bernardino
Glossary of Budget Terms
Certificates of Participation (COP): Obligations of a public entity based on a lease or
installment sale agreement.
Charter: A formal legal document of the City which specifies its purpose and describes the
organization of the City's government.
Charter 186: Establishes for the City of San Bernardino a basic standard for fixing salaries,
classifications, and working conditions of the employees of the Police and Fire Departments of
the City of San Bernardino, and the Mayor and the Common Council in exercising the powers
and control over these departments
Consumer Price Index (CPI): Measure of change in consumer as determined by a monthly
survey ofthe U.S. Bureau of Labor Statistics.
Debt Service: Payment of the principal and interest on an obligation resulting from the issuance
of bonds, notes, or certificates of participation (COP's).
Deficit: Insufficient revenues to fully support current expenditures and obligations.
Department: A major unit of organization in the City comprised of subunits named divisions and
responsible for the provision of a specific package of services.
Depreciation: Loss in value of an asset, whether due to physical changes, obsolescence, or
factors outside ofthe asset.
Designated Fund Balance: A portion of unreserved fund balance designed by city policy for a
specific future use.
Division: A major sub-unit of a department with responsibility for a clearly defined portion of
the service package provided by a department.
EDA: Economic Development Agency
EMS: Emergency Medical Service
Encumbrance: The commitment of appropriated funds to purchase goods or services. An
encumbrance is not an expenditure. An encumbrance reserves funds to be expended.
Expenditures: The outflow of funds paid or to be paid for an asset, goods or services obtained.
The actual spending of governmental funds.
Fiscal Year (FY): A twelve-month period of time to which an annual budget applies and at the
end of which a governmental unit determines its financial position and the results of its
operations. In the City of San Bernardino, it is July I through June 30.
Fixed Asset: Assets of long-term character which are intended to continue to be held or used,
such as land, buildings, machinery, furniture, and other equipment.
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City of San Bernardino
Glossary of Budget Terms
Fleet: A Division of the City of San Bernardino which operates under the supervision of the
Director of Public Services. This Division is responsible for acquisition, service and maintenance
ofthe City's vehicles and equipment.
Franchise Fee: A charge for the privilege of using public rights-of-way and property within the
City for public or private purposes.
Fringe Benefit: Compensation that an employer contributes to its employees such as social
security, retirement, life/heaIth insurance, or training supplements. Fringe benefits can be either
mandatory or voluntary.
Fund: An independent fiscal and accounting entity with a self balancing set of accounts, used to
record all financial transactions related to the specific purpose for which the fund was created.
Fund Balance: The difference between fund assets and fund liabilities.
General Fund: The primary fund of the City used to account for all revenues and expenditures of
the City not legally restricted as to use. This fund is used to accumulate the cost of the City's
general operations and services such as street maintenance, parks, fire and police protection.
General Government: A fund within the City budget which consists of two areas: 1) Fine Arts
and Civic Activities - Which is the support of various programs that aid the City in improving its
community, developing and enhancing the cultural and aesthetic values of the City, and
developing the Civic Affairs of the City. 2) Non-Departmental- City-wide program costs which
are not directly applicable to anyone City Department.
Goal: A general statement of broad direction, purpose or intent, which describes the essential
reason for existence and which is not limited to a one-year time frame. Generally, a goal does not
change from year to year.
Grant: Contributions or gifts of cash or other assets from another governmental entity or
foundation to be used or expended for a specific purpose, activity or facility.
Infrastructure: The physical assets of the City (Streets, water, sewer, public buildings, parks).
Internal Audit: The review of financial transactions in both the Finance Department and in
operating departments for compliance with local policy and generally accepted accounting
principles.
Iuternal Service Funds: A fund established to account for the goods and services provided by
one City Department to another City Department and is financed on a cost-reimbursement basis.
Lease Purchase: With the approval of the Mayor and Common Council, a large purchase of
capital equipment made by the City of San Bernardino which is paid through a financial
corporation in payments. The payments can be made annually, semi-annually, quarterly or
monthly.
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City of San Bernardino
Glossary of Budget Terms
Liquidation: To convert assets into cash.
Mid-Year Budget Review: A review of actual expenditure and reserves vs budgeted amounts
half way through the fiscal year. Reserve and expenditure estimates may be revised based on
actuals and new information not available at time the budget was adopted.
MIS: Management Information Systems Division of the City of San Bernardino. This Division
provides technology creation, maintenance, and general automation support to all City
Departments.
Memorandum of Understanding (MOU): The result of labor negotiations between the City of
San Bernardino and its various bargaining units.
Non-Departmental: Appropriations of the General Fund not directly associated with a specific
department. Expenditure items and certain types of anticipated general savings are included.
Ordinance: A formal legislative enactment by the City Council. It has the full force and effect
oflaw within the City boundaries.
Organizational Chart: A chart showing the interrelationships of positions within an
organization in terms of authority and responsibilities.
Outsource: The contracting of public services to an outside vendor.
Overtime: Time worked in excess of an agreed upon time for normal working hours by an
employee. Hourly or non-exempt employees must be compensated at the rate of one and one-half
their normal hourly rate for overtime work beyond 40 hours in a work week.
PERS: Public Employees Retirement System - The retirement system, administered by the State
of California, to which all permanent City employees belong.
Preliminary Budget Document: An unapproved draft document listing an estimate of proposed
applications or expenditures and the proposed means of financing them for a certain fiscal year.
Proposition 218: The law which governs whether or not a City can approve/impose a tax without
an electoral vote.
Purchase Order: An order issued by the Purchasing Department which authorizes the delivery
of specific goods or services, and incurring a debt for them.
Reserve: The portion of a fund's balance legally restricted for a specific purpose and, therefore
not available for general appropriation.
Resolution: A special order of the Mayor and Common Council which has a lower legal
standing than an ordinance.
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City of San Bernardino
Glossary of Budget Terms
Revenues: Funds received from various sources and treated as income to the City which are used
to finance expenditures. These funds are received from sources such as local taxes, state shared
revenues, fees charged, interest on investments and fines and forfeits.
Salary Savings: Salary savings reflect personnel cost savings resulting from vacancies and as a
result of employee turnover.
Shortfall: The forecast amount, which will become a deficit to the City once all revenues and
expenditures have been calculated.
Special Revenue Funds: A governmental fund type used to account for specific revenues that
are legally restricted to expenditures for particular purposes.
Taxes: Charges made against the public by a government to obtain the money it needs to finance
its activities.
Transient Occupancy Tax (TOT): A tax imposed on travelers who stay in temporary lodging
facilities within the City.
Undesignated Fund Balance: The unrealized balance of an account once all revenues and
expenditures have been calculated.
Utility Users Tax: Per the City of San Bernardino Municipal Code Chapter 3.44, a tax is
imposed on users of utilities within the City, such as cable, gas, electric, and telephone, at a rate
of 8%. This tax is a major revenue source for the City of San Bernardino.
Vacancy Factor: The calculated savings of vacant positions and expenditure savings within
City Departments.
Vendors: Persons or companies providing services to the City of San Bernardino for payment.
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ABBREVIATIONS AND
ACRONYMS GUIDE
Air Quality Management District AQMD
(Also known as South Coast Air Quality Management District - SCAQMD)
Assembly Bill AB
Assessment District AD
Assessor's Parcel Number APN
Business Registration Certificate BRC
(Also known as Business License)
Computer Aid Dispatch CAD
(Also known as Computer Aided Design)
California Environmental Quality Act CEQA
Certificates of Participation COP
Citizens Option for Public Safety COPS
Community Development Block Grant CDBG
Community Development Commission CDC
Comprehensive Annual Financial Report CAFR
Conditional Use Permit CUP
Consumer Price Index CPI
Drug Abuse Resistance Education DARE
Development Review/Environmental Review Commission DRC/ERC
Economic Development Agency EDA
(Also known as Former Redevelopment Agency - RDA)
Emergency Medical Service EMS
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City of San Bernardino
Abbreviations and Acronyms Guide
Environmental Impact Report
EIR
Fair Political Practices Commission
FPPC
Fiscal Year
FY
General Plan Amendment
GPA
Geographical Information Systems
GIS
Government Code
GC
Inland Valley Development Agency
IVDA
Joint Powers Authority (generic)
JPA
Legislative Review Committee
LRC
Local Agency Formation Commission
LAFCO
Management Information Systems
MIS
Mayor and Common Council
M&CC
Memorandum of Understanding
MOU
Municipal Code
(Also known as San Bernardino Municipal Code - SBMC)
MC
Norton Air Force Base (former)
NAFB
Online Computer Library Center
OCLC
Problem Oriented Policing
POP
Public Employees Retirement System
PERS
Public Information Officer
PIO
Records Management Systems
RMS
San Bernardino Association of Governments
SANBAG
San Bernardino International Airport Authority
SBlAA
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City of San Bernardino
Abbreviations and Acronyms Guide
San Bernardino Joint Powers Financing Authority
SBJPFA
San Bernardino Unified School District
SBUSD
Senate Bill
SB
Southern California Association of Governments
SCAG
Southern California Edison
SCE
Transient Occupancy Tax
(Also known as Transient Lodging Tax - TL T)
TOT
Underground Utility District
UUD
Utility Users Tax
UUT
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