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Glossary and Acronyms

Key Performance Indicator (KPI): A strategic level performance measure that demonstrates how well the city is
achieving Council goals and management plan core objectives.

Key Performance Measure (KPM): A performance measure that demonstrates how effective a department is at
achieving management plan core objectives. These may also be identified as key performance indicators by city
management.

Levy: To impose taxes, special assessments, or service charges for the support of city activities. Also, the amount
of tax for an individual property or the sum of all individual amounts of tax.

Liabilities: Probable future sacrifices of economic benefits, arising from present obligations of a particular entity
to transfer assets or to provide services to other entities in the future as a result of past transactions or events;
what you owe.

Licenses and Permits: Payments received in connection with the city’s regulatory activities and its review and
issuance of permission to undertake an activity or pursue an occupation; they include utility franchise fees;
building, electrical, and plumbing permit fees; parking permit fees; health and safety permit fees; and occupational
license charges.

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.

Maintenance and Operations (M&O): Taxes that are generated by the taxing unit for general expenses.

Major Fund: Funds whose revenues, expenditures/expenses, assets or liabilities are at least 10 percent of the
total for their fund category (governmental or enterprise) and 5 percent of the aggregate of all governmental and
enterprise funds in total.

Management Plan: A high-level strategic plan developed by the city’s executive-level staff that communicates
overall guidance and direction on Council goals and the organizational actions required to pursue those goals. This
plan assists departments in aligning their activities with Council goals.

Milestone: A task, event, or critical decision point related to an initiative or project. Milestones can be tracked to
evaluate achievement or level of completion of an initiative or project.

Mission: A statement describing an organization’s fundamental purpose.

Modified Accrual Accounting: Modified Accrual Basis of Accounting – The accrual basis of accounting adapted to
the governmental fund type spending measurement focus. Under this basis of accounting, revenues are
recognized when they become both “measurable” and “available” to finance expenditures in the current period.
For example, revenue that is earned and measurable on April 1, is billed on April 30 , and paid on May 1 would
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not be recorded as revenue until payment is received on May 1 .
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