Page 128 - Pantego FY22 Operating Budget

Balance Sheet – A financial statement that presents the assets, liabilities, reserves and balances of
specific governmental or proprietary funds as of a specified date.

Base Budget – Cost of continuing the existing levels of service in the current budget year.

Bond – A written promise to pay a specified sum of money, called face value or principal amount, at a
specified date or dates in the future, called the maturity date(s), together with periodic interest at a
specified rate. Bonds are most frequently issued to finance the construction of large capital projects,
such as buildings, streets, bridges, etc. The most common types of bonds are general obligation and
revenue bonds.

Budget – A plan of financial operation that links all planned revenues and expenditures with various
municipal services. The term “budget” usually indicates a financial plan for a single fiscal year.

Budget Amendment – The Town Council is permitted by state statue to amend the Budget Ordinance
at anytime during the fiscal year, bringing about a change is total appropriation for a fund.

Budget Calendar – The schedule of key dates or milestones, which the Town departments follow in
the preparation, adoption and administration of the budget.

Budget Document – The instrument used by the budget authority to present a comprehensive
financial program to the appropriating body.

Budget Message – A general discussion of the budget presented in writing by the City Manager to the
Town Council and the public. The budget message includes an explanation of the principal budget
items, an outline of the Town’s experience during the past year and its financial status of the time of the
message, and recommendations regarding the financial policy for the coming period.

Budgetary Control – The control or management of a government or enterprise in accordance with an
approved budget for the purpose of keeping expenditures within the limitations of available
appropriations and available resources.

Budgeted Funds – Funds that are planned for certain uses but have not yet been formally or legally
appropriated by the governing body.

Capital Improvements – A permanent addition to the Town’s assets, including the design, construction
or purchase of land, buildings or facilities or major renovations of the same.

Capital Improvement Program – A Capital Improvement Program (CIP) budget is a separate budget
from the operating budget. Items in the CIP are usually construction projects of major capital
purchases designed to improve and maintain the value of the Town’s assets.

Capital Lease – A capital lease is a lease considered to have the economic characteristics of asset
ownership, and therefore considered a purchased asset for accounting purposes. An operating lease,
on the other hand, would be handled as a true lease, or rental for accounting purposes.

Capital Outlay – Expenditures that result in the acquisition of or addition to fixed assets.

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