Page 318 - CityofWataugaAdoptedBudgetFY24

GLOSSARY OF TERMS

Levy: To impose taxes, special assessments, or service charges for the support of the City services.

Liabilities: Debt or other legal obligations arising out of transactions in the past, which must be
liquidated, renewed, or refunded at some future date.

Long-term Debt: Loans and obligations with a maturity of longer than one year; usually
accompanied by interest payments; also called funded debt.

Maintenance & Operations (M&O): Represents the portion of taxes assessed for the maintenance
and operations of General Fund Services.

Materials and Supplies: Expendable materials and operating supplies necessary to conduct
departmental activity.

Modified Accrual Accounting: A basis of accounting in which revenues are recognized in the
accounting period when they become available and measurable. Expenditures are recognized in the
accounting period in which the fund liability is incurred.

NEFDA: Acronym for Northeast Fire Department Association is an association developed for the
purpose of combining manpower, ideas, and education for special operations.

Net Bonded Debt: Gross bonded debt less any cash or other assets available and earmarked for
its retirement.

No-New Revenue Tax Rate: The tax rate that would generate the same amount of revenue in the
current year as was generated by a taxing unit’s adopted tax rate in the preceding tax year from
property that is taxable in both the current tax year and the preceding tax year.

Non-Departmental Expense: Expenses that benefit the fund as a whole rather than a particular
department within the fund.

Non-exempt: Personnel eligible to receive overtime pay when overtime work has been authorized
or requested by the supervisor.

Operating Budget: A financial plan outlining estimated revenues and expenditures and other
information for a specified period (usually a fiscal year). The “proposed budget” is the financial plan
presented by the City Manager for consideration by the City Council, and the “adopted budget” is the
financial plan ultimately approved and authorized by the City Council.

Operating Expense: Proprietary fund expenses that are directly related to the fund’s primary service
activities.

Operating Revenues: Proprietary fund revenues that are directly related to the fund's primary
service activities.

Operating Transfers: All inter-fund transfers other than residual equity transfers.

Ordinance: A formal legislative enactment by the governing board of a municipality. If it is not in
conflict with any higher form of law, such as a State statute or constitutional provision, it has the full
force and effect of law within the boundaries of the municipality to which it applies. The difference
between an ordinance and a resolution is that the latter requires less legal formality and has a lower
legal status. Revenue raising measures, such as the imposition of taxes, special assessments, and
service charges, universally require ordinances. Ordinances and other legislation are not passed
until the plans for, and costs of endorsements are known.
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