Page 516 - NRH FY20 Approved Budget

GLOSSARY

CITY COUNCIL: The Mayor and seven (7) Council members collectively acting as the legislative and
policymaking body of the City.

CO’s – Acronym for Certificates of Obligation Bonds. See Certificates of Obligations.

CODE RANGER PROGRAM: A program which became active in June 2012. The program has volunteers
which observe code violations, including falling fence, high grass, and inoperable vehicles and illegals signs.

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG): Federal funds made available to municipalities
specifically for community revitalization.

CONTINGENCY: A budgetary reserve set-aside for emergencies or unforeseen expenditures not otherwise
budgeted.

CONTRACTUAL SERVICES: The costs related to services performed for the City by individuals, businesses,
or utilities.

CURRENT TAXES: Taxes levied and due within one year.

DEBT SERVICE: The City's obligation to pay the principal and interest of all bonds and other debt instruments
according to a pre-determined payment schedule.

DEBT SERVICE FUND: A fund established to account for the accumulation of resources for the payment of
principal and interest on long term debt, also called a Sinking Fund.

DEFICIT: The excess of the liabilities of a fund over its assets; or the excess of expenditures over revenues
during an accounting period; or, in the case of proprietary funds, the excess of expense over income during an
accounting period.

DELINQUENT TAXES: Taxes remaining unpaid on or after the date on which a penalty for non-payment is
attached.

DEPARTMENT: Administrative subsection of the City that indicates management responsibility for an
operation.

DEPRECIATION: That portion of the cost of a capital asset that is charged as an expense during a particular
period. This is a process of estimating and recording the lost usefulness, expired useful life or diminution of
service from a fixed asset that cannot or will not be restored by repair and will be replaced. The cost of the
loss of usefulness of a fixed asset is the depreciation or the cost to reserve in order to replace the item at the
end of its useful life.

DISTINGUISHED BUDGET PRESENTAT-ION AWARD: A voluntary program administered by the Government
Finance Officers Association to encourage governments to publish well organized and easily readable budget
documents and to provide peer recognition and technical assistance to the fiscal officers preparing them.

EFFECTIVE TAX RATE: A rate which generates the same amount of revenues from property which is taxed in
both years.

ENCUMBRANCES: Obligations in the form of purchase orders and contracts which are chargeable to an
appropriation and for which a part of the appropriation is reserved because the goods or services have not
been received. When paid, the encumbrance is liquidated.

ENTERPRISE FUND: A fund established to account for operations that are financed and operated in a manner

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