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

Indirect Cost:
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.

Internal Controls:
and compliance with laws and regulations, aiming to prevent fraud and errors.

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 specified 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 fixed assets used in governmental operations.

Liabilities: Debts or obligations owed by an organization, including loans, accounts payable, and accrued expenses.
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:

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.

Net Income: The difference between an organization's revenues and expenses, representing its profit or loss for a specific
period.

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

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

Official Statement:
note issue and the issuer. The official statement is typically published with the notice of sale. It is sometimes called an
offering circular or prospectus.

Operating Budget:
year.

Overlapping Debt:
a regional school district, regional transit authority, etc.

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

Principal:

Program: A combination of activities to accomplish an end.

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