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City of Mansfield Annual Budget and Service Program Fiscal Year 2025-2026 Table of Contents

determine locally, within limitations established by statute and the Commissioner of Revenue, what percentage of the tax
burden is to be borne by each class of real property and by personal property owners.

Collective Bargaining:
employer and some or all of its employees, who are represented by a recognized labor union, regarding wages, hours and
working conditions.

Compliance:
Consumer Price Index: The statistical measure of changes, if any, in the overall price level of consumer goods and services.
The index is often called the "cost-of-living index."

Cost-Benefit Analysis: A decision-making tool that allows a comparison of options based on the level of benefit derived
and the cost to achieve the benefit from different alternatives.

Debt Burden:
of assessed value, debt per capita, etc.). Sometimes debt burden refers to debt service costs as a percentage of the total
annual budget.

Debt Service: The repayment cost, usually stated in annual terms and based on an amortization schedule, of the principal
and interest on any particular bond issue.

Encumbrance: A reservation of funds to cover obligations arising from purchase orders, contracts, or salary commitments
that are chargeable to, but not yet paid from, a specific appropriation account.

Enterprise Funds: An enterprise fund is a separate accounting and financial reporting mechanism for municipal services
for which a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public the
portion of total costs of a service that is recovered through user charges and the portion that is subsidized by the tax levy,
if any. With an enterprise fund, all costs of service delivery — direct, indirect, and capital costs — are identified. This allows
the community to recover total service costs through user fees if it chooses. Enterprise accounting also enables
communities to reserve the "surplus" or net assets unrestricted generated by the operation of the enterprise rather than
closing it out to the general fund at year-end. Services that may be treated as enterprises include, but are not limited to,
water, sewer, hospital, and airport services.

Equalized Valuations (EQVs): The determination of the full and fair cash value of all property in the community that is
subject to local taxation.

Equity: The residual interest in the assets of an organization after deducting liabilities, representing the owners' stake in
the business.

Estimated Receipts: A term that typically refers to anticipated local revenues often based on the previous year's receipts
and represent funding sources necessary to support a community's annual budget. (See Local Receipts)

Exemptions:
exemption is available to particular categories of property or persons upon the timely submission and approval of an
application to the assessors. Properties exempt from taxation include hospitals, schools, houses of worship, and cultural
institutions. Persons who may qualify for exemptions include disabled veterans, blind individuals, surviving spouses, and
seniors.

Expenditure: An outlay of money made by municipalities to provide the programs and services within their approved
budget.

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