Page 113 - TownofPantegoFY25Budget

Indirect Cost: Costs of a service not re ected in the operating budget of the entity providing the service. An example of an
indirect cost of providing water service would be the value of time spent by non-water department employees processing
water bills. A determination of these costs is necessary to analyze the total cost of service delivery. The matter of indirect costs
arises most often in the context of enterprise funds.

Interest: Compensation paid or to be paid for the use of money, including amounts payable at periodic intervals or discounted
at the time a loan is made. In the case of municipal bonds, interest payments accrue on a day-to-day basis, but are paid every
six months.

Interest Rate: The interest payable, expressed as a percentage of the principal available for use during a speci ed period of
time. It is always expressed in annual terms.

Investments: Securities and real estate held for the production of income in the form of interest, dividends, rentals or lease
payments. The term does not include xed assets used in governmental operations.

Line Item Budget: A budget that separates spending into categories, or greater detail, such as supplies, equipment,
maintenance, or salaries, as opposed to a program budget.

Local Aid: Revenue allocated by the state or counties to municipalities and school districts.

Maturity Date: The date that the principal of a bond becomes due and payable in full.

Municipal(s): (As used in the bond trade) "Municipal" refers to any state or subordinate governmental unit. "Municipals" (i.e.,
municipal bonds) include not only the bonds of all political subdivisions, such as cities, towns, school districts, special districts,
counties but also bonds of the state and agencies of the state.

Note: A short-term loan, typically with a maturity date of a year or less.

Objects of Expenditures: A classi cation of expenditures that is used for coding any department disbursement, such as
“personal services,” “expenses,” or “capital outlay.”

Of{cial Statement: A document prepared for potential investors that contains information about a prospective bond or note
issue and the issuer. The of cial statement is typically published with the notice of sale. It is sometimes called an offering
circular or prospectus.

Operating Budget: A plan of proposed expenditures for personnel, supplies, and other expenses for the coming scal year.

Overlapping Debt: A community's proportionate share of the debt incurred by an overlapping government entity, such as a
regional school district, regional transit authority, etc.

Performance Budget: A budget that stresses output both in terms of economy and ef ciency.

Principal: The face amount of a bond, exclusive of accrued interest.

Program: A combination of activities to accomplish an end.

Program Budget: A budget that relates expenditures to the programs they fund. The emphasis of a program budget is on
output.

Purchased Ser vices: The cost of services that are provided by a vendor.

Refunding of Debt: Transaction where one bond issue is redeemed and replaced by a new bond issue under conditions
generally more favorable to the issuer.

Reser ve Fund: An amount set aside annually within the budget of a town to provide a funding source for extraordinary or
unforeseen expenditures.

Revaluation: The assessors of each community are responsible for developing a reasonable and realistic program to achieve
the fair cash valuation of property in accordance with constitutional and statutory requirements. The nature and extent of that
program will depend on the assessors’ analysis and consideration of many factors, including, but not limited to, the status of

Town of Pantego | Town of Pantego FY 2024-2025 Page 112