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Appendices

BUDGET GLOSSARY (CONTINUED)

Modified Accrual Basis: A modified method of accrual basis accounting whereby revenues are recognized when
they become both measurable and available for use during the year. For example, certain taxes (Sales and Alcoholic Beverage)
are considered measurable when in the hands of intermediary collecting governments (State of Texas) and are recognized as
revenue at that time. The City’s General Fund utilizes this basis of accounting.

Objective: Performance indicator of a program.

Operating Budget: The budget that pertains to daily operations which provide basic governmental services. The
operating budget contains appropriations for such expenditures as personnel, supplies, utilities, materials, travel, fuel, and
capital equipment.

Outcome: Desired state that will arise from strategically applied resources.

Performance Measures: Quantitative measure of a program’s effectiveness or efficiency (e.g., average time to
dispatch an emergency 911 call). Often used in conjunction with workload measures (e.g., number of emergency 911 calls
received) to evaluate and revise resource allocation strategies.

Position Control: The initiative to fund, monitor and maintain only the number of positions authorized by City Council
in any given budget year.

Priority: Certain outcomes that have been selected for a higher level of attention and effort by the City Council

Program: An organized set of related work activities which are directed toward a common purpose or goal and represent
a well-defined expenditure of City resources.

Program Budget: A budget which structures budget choices and information in terms of programs and their related
activities, (i.e., repairing roads, treating water, etc.), provides information on what each program is committed to accomplish in
the long run (goals) and in the short run (objectives), and measures the degree of achievement of program objectives
(performance measures).

Program Description: Outlines the function of the program, the various activities involved in the program and other
pertinent information about the program. It answers the question, “what does this program do?”

Program Goal: A general statement on the intended effect or purpose of the program’s activities. It includes terms such
as: to provide (a service), to supply (a given need), to control, reduce, or eliminate (an occurrence), to maintain (standards), or
to maximize (quality). A goal is not limited to a one-year time frame and should generally not change from year to year. A goal
statement describes the essential reason for the program’s existence.

Program Objectives: Objectives are statements of the intended beneficial and/or tangible effects of a program’s
activities. They are measurable and related to the proposed budget year. They are specific targets toward which a manager
can plan, schedule work activities, and make staff assignments. Objectives should quantifiably be addressed in terms such as:
to increase an activity, to maintain a service level, to reduce the incidence, or to eliminate a problem.

Project: Discrete tasks accomplished by Departments on a one-time basis.

Proprietary Funds: A class of fund types that account for a local government’s businesslike activities.

2020 Adopted Budget and Business Plan 291 City of Arlington, Texas