2009-10 Adopted Budget - City of Hoquiam

APPENDIX B2009-2010 Operating and Capital BudgetGlossary of TermsLEVY LID: A statutory restriction on the annual increase in the amount of property tax agiven public jurisdiction can assess on regular or excess levies, without approval bypopular vote.LGIP: The local government investment pool is a repository run by the WashingtonState Treasurer's Office.LIABILITY: Debt or other legal obligations arising out of transactions in the past whichmust be liquidated, renewed or refunded at some future date.LOCAL IMPROVEMENT DISTRICT (LID): A defined set of properties established byCity Council action within which the City provides for specified infrastructureimprovements in return for the ability to assess the individual properties a sufficientannual amount to finance the costs of such improvements. Such improvements areusually financed through the issuance of LID Bonds. Local Improvement District 95-1and 98-01 of the City constitute such LID’s (see the Debt Service section of this budgetdocument).MATURITIES: The dates on which the principal or stated values of investments or debtobligations mature and may be reclaimed.MILLIAGE RATE: The property tax rate which is based on the valuation of property. Atax rate of one mill produces one dollar of taxes on each $1,000 of property valuation.Washington state law limits the milliage rate on any property to 1% of assessed value,or 10 mills, for all purposes without popular approval through a vote of the people.MITIGATION FEES: Contributions made by developers toward future improvements ofcity facilities resulting from the additional demand on the City’s facilities generated fromthe development.MODIFIED ACCRUAL BASIS: The basis of accounting under which expenditures, otherthan accrued interest on general long-term debt, are recorded at the time liabilities areincurred and revenues are recorded when received in cash except for material and/oravailable revenues, which should be accrued to reflect properly the taxes levied andrevenue earned.NET REVENUE: The revenue of a system, business or fund less the cost ofmaintenance and operation of that system, business of fund.NOTES TO THE FINANCIAL STATEMENTS: The Summary of Significant AccountingPolicies (SSAP) and other disclosures required for a fair presentation of the financialstatements of government in conformity with Generally Accepted Accounting Principles(GAAP) and not included on the face of the financial statements themselves. The notesto the financial statements are an integral part of the General Purpose FinancialStatement (GPFS).OBJECT (Sub-object): As used in expenditure classification, this term applies to thetype of item purchased or the service obtained (as distinguished from the resultsobtained from expenditures).248