Page 304 - Mansfieldr FY20 Approved Budget

Capital Equipment Budget The portion of the annual operating budget that appropriates
funds for the purchase of capital equipment items. These
expenditures are often separated from regular operating items,
such as salaries, utilities and office supplies. The Capital
Equipment Budget includes funds for capital equipment
purchases, such as typewriters, vehicles, furniture, machinery,
building improvements, microcomputers and special tools,
which are usually distinguished from operating items according
to their value and projected useful life. The dollar varies
according to the policy established by each jurisdiction.

Capital Improvement A plan for capital expenditures to provide long-lasting physical
Program improvements to be incurred over a fixed period of several
future years.

Capital Improvement A Capital Improvement Program (CIP) Budget is a separate
Program Budget budget from the operating budget. Items in the CIP are usually
construction projects designed to improve the value of the
government assets. Examples of capital improvement projects
include new roads, sewer lines, buildings, recreational facilities
and large scale remodeling. The City Council receives a
separate document that details the CIP costs for the upcoming
fiscal year.

Capital Leases A contract by which the City purchases equipment for a
specified term for a specified rent.

Cash Accounting A basis of accounting in which transactions are recorded when
cash is either received or expended for goods and services.

Cash Management The management of cash necessary to pay for government
services while investing temporary cash excesses in order to
earn interest revenue. Cash management refers to the activities
of forecasting the inflows and outflows of cash, mobilizing cash
to improve its availability for investment, establishing and
maintaining banking relationships, and investing funds in order
to achieve the highest interest and return available for temporary
cash balances.

Consolidated Annual The official financial report of the City that includes an audit
Financial Report (CAFR) opinion as well as basic financial statements and supporting
schedules necessary to demonstrate compliance with financial
related legal and contractual provisions.

Current Taxes Taxes that are levied and due within one year.

Debt Services The City’s obligation to pay the principal and interest of all
bonds and other debt instruments to a pre-determined payment
schedule.

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