2009-10 Adopted Budget - City of Hoquiam

APPENDIX B2009-2010 Operating and Capital BudgetGlossary of TermsFIXED ASSETS: Long-lived tangible assets obtained or controlled as a result of pasttransactions, events or circumstances. Fixed assets include building, equipment,improvements other than buildings, and land.FLOAT: The amount of money represented by checks outstanding and in the processof collection.FULL FAITH AND CREDIT: A pledge of the general taxing power of a government torepay debt obligations (typically used in reference to bonds).FULL TIME EQUIVALENT (FTE): A numerical expression which indicates the amount oftime a position has been budgeted for. A position budgeted at 40 hours per week for 12months equals 1.0 FTE. Other frequently budgeted levels are 20 hours per week (.5FTE) to show a position that has been split between two funds because the employee’sresponsibilities directly affect two funds.FUND: An independent fiscal and accounting entity with a self-balancing set ofaccounts recording cash and/or other resources together with all related liabilities,obligations, reserves, and equities which are segregated for the purpose of carrying onspecific activities or attaining certain objectives.FUND BALANCE: The excess of an entity’s assets over its liabilities. A negative fundbalance is sometimes called a deficit.GENERAL FIXED ASSETS: Capital assets that are not part of any fund, but of thegovernment unit as a whole. Most often these assets arise from the expenditure of thefinancial resources of governmental funds.GENERAL FUND: The fund supported by taxes, fees and other revenues that may beused for any lawful purpose.GENERAL OBLIGATION BONDS: Bonds for which the full faith and credit of theinsuring government are pledged for payment.GOALS: The objective of specific tasks and endeavors.GRANT: A contribution of assets (usually cash) by one governmental unit or otherorganization to another. Typically, these contributions are made to local governmentsfrom the State and Federal governments. Grants are usually made for specifiedpurposes.GROWTH MANAGEMENT ACT: Passed in 1990 by the Washington State Legislatureand later amended in 1991, 1993, and 1995. The Act gives local cities and countiesexperiencing rapid population growth the tools to better manage the development thataccompanies it. Ocean Shores is not required to plan under the terms of the GrowthManagement Act.GUARANTY FUND: A fund established by a bond issuer which is pledged as securityfor the payment of one or more bond issues. Normally used for local improvementdistricts (LID).246