Glossary of Budgetary Terms
Actual Budget - the adopted budget after amendments and changes throughout the fiscal year
Ad Valorem Tax - a tax on the value of real estate and certain possessions; the property tax bill is calculated by 1) determining the fair market value (FMV), 2) multiplying the FMV by the assessment rate (10% for land and residential buildings, 15% for commercial structures, and 25% for public utility property), 3) dividing the assessment value by 1,000, and 4) multiplying that number by the millage rate
Adopted Budget - the proposed budget after being reviewed, changed, and adopted at the beginning of the fiscal year
Bonds Principal Payable - money owed to pay back the principal of bonds issued
Capital Budget - appropriations for the first year of the capital improvement plan used for capital expenditures on durable items (buildings, equipment, computers, infrastructure, etc.)
Capital Improvement Plan - a 4 to 5 year plan describing the programs and expenditures on future construction or acquisition of major capital facilities; only the first year of the capital plan receives appropriations through the capital budget
Debt Service Funds - funds used for the payment of general long-term debt principal, interest, and related costs
Depreciation - the decline in the value of capital goods over time
Enterprise Fund - agencies which generate their own revenue to fund their operations
General Fund - funds used for general operating expenses; these revenue sources are not restricted for specific purposes; rather, this money is allocated as needed for operating budget expenditures
Millage – unit of measurement used for property tax rates; 1 mill is equal to one thousandth of a dollar
Operating Budget - financial plan for the ongoing functions and activities of government; an estimate of the revenues and expenditures for the year
Proposed Budget - the draft form of the budget used as a basis for changes and corrections before adoption
Special Revenue Funds - specific revenue sources, (other than expendable trusts) that are legally restricted to expenditures for specific operating purposes