2009-10 Adopted Budget - City of Hoquiam

APPENDIX B2009-2010 Operating and Capital BudgetGlossary of TermsIMPACT FEES: A fee assessed on new development that creates additional demandand need for public facilities.INFRASTRUCTURE: The underlying foundation, especially the basic installations andfacilities, on which the continuance and growth of a jurisdiction depends, i.e., streets,roads, sewer, and water systems.INITIATIVE 747: Initiative of the people approved in November 2001, which restricts thegrowth of state and local property taxes from currently assessed property to 1% peryear, or the percentage increased in the implicit price deflator (IPD), whichever is less.The assessed value for new construction and renovations is added to currentassessments and taxed at the resulting property tax rate.INTERFUND PAYMENTS (TRANSFERS): Expenditures made to other funds forservices rendered. This category includes interfund repairs and maintenance, and theCity’s Cost Allocation Program (See Appendix A).INTERGOVERNMENTAL SERVICES: Intergovernmental purchases of thosespecialized services typically performed by local governments.INTERNAL CONTROL: A plan of organization for purchasing, accounting, and otherfinancial activities which, among other things, provides that:♦ The duties of employees are subdivided so that no single employee handlesfinancial action from beginning to end,♦ Proper authorization from specific responsible officials are obtained before key stepsin the processing of a transaction are completed,♦ Records and procedures are arranged appropriately to facilitate effective control.INTERNAL SERVICE FUND: Funds used to account for the financing of goods orservices provided by one department or agency to other departments or agencies of theCity, or to other governments, on a cost-reimbursement basis.INVESTMENT: Securities and real estate purchased and held for the production ofincome in the form of interest, dividends, rentals and base payments.LATECOMER FEES: Fees paid by developers or future service users for their share ofpast improvements financed by others.LEASING: A financial technique whereby ownership of the project or equipmentremains with the financing entity, and where title may or may not transfer to the City atthe end of the lease.LEVY: (1) To impose taxes, special assessments or service charges for the support ofgovernment activities. (2) The total amount of taxes, special assessments or servicecharges imposed by a government.247