Page 94 - Forest Hill FY20 Annual Budget

CITY OF FOREST HILL

Line-Item Budget: A budget that lists each expenditure category (salary, materials, telephone service,
travel, etc.) separately along with the dollar amount budgeted for each specified category.

Long -Term Debt: Any un-matured debt that is not a fund liability and at the same time has a maturity of
more than one year.

Modified Accrual Accounting: A basis of accounting in which revenues should be recognized in the
accounting period in which they become available and measurable and expenditures are recorded in the
accounting period that they are incurred. Since this type of accounting basis is a conservative financial
approach, it is recommended as the standard for most governmental funds.

Objective: The reason for making specific efforts or taking deliberate actions with the intent to attain or
accomplish an identified goal, targeted level, or meet a defined purpose.

Operating Budget: The portion of the budget pertaining to daily operations that provide basic governmental
services. The operating budget contains appropriations for such expenditures as personnel, supplies,
utilities, materials, travel, and fuel and the proposed means of financing them.

Operating Fund: A fund restricted to a single fiscal year.

Performance: The execution or accomplishment of work which produces results.

Performance Budget: A budget that focuses upon activities rather than line items. Workload and unit cost
data are collected in order to assess the efficiency of services. Typical data collected might include miles
of streets paved per year, cost of paved streets per mile, tons of garbage collected per employee hour, or
cost per employee hour of garbage collection.

Performance Measures:

Specific quantitative and qualitative measures of work performed as an objective of the department.

Program Budget: A budget that focuses upon the goal and objectives of an agency or jurisdiction rather
than upon its organizational budget units or object classes or expenditures.

Property Tax: Taxes levied on both real and personal property according to the property's valuation and
the tax rate.

Reconciliation: A detailed analysis of changes in revenue or expenditure balances within a fund.

Requisition: A written request from a department to the purchasing office for specific goods or services.
This action precedes the authorization of a purchase order.

Reserve: An account used to indicate that a portion of a fund's balance is legally restricted for a specific
purpose and is, therefore, not available for general appropriations.

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