AB 939. An
assembly bill that mandates waste reduction. This Bill requires that by the
year 2000, 50% of the waste generated be diverted; e.g., incinerated or
recycled.
Abatement.
A complete or partial cancellation of a levy imposed by a
government. Abatements usually apply to tax levies, special assessments and
service charges.
Accountability.
The state of being obliged to explain one?s actions, to justify what one
does. Accountability requires governments to answer to the citizenry -- to
justify the raising of public resources and the purposes for which they are
used.
Activity.
A specific and distinguishable service performed by one or more organizational
components of a government to accomplish a function for which the government
is responsible (e.g., police is an activity within the public safety
function).
Ad Valorem Tax.
A tax based on value (e.g., a property tax).
Allocation.
Most often refers to the division of tax proceeds among local
agencies.
Allotment.
A part of an appropriation that may be encumbered or expended during a given
period.
Appropriated Budget.
The expenditure authority created by the appropriation bills or
ordinances, which are signed into law, and the related estimated revenues.
The appropriated budget would include all reserves, transfers, allocations,
supplemental appropriations and other legally authorized legislative and
executive changes.
Appropriation.
Amount of money budgeted for a given program. Does not mean it
will be fully expended. Appropriations are the means by which legal authority
is given to expend public monies.
Assessed Valuation.
A dollar value placed upon real estate or other property, by
Los Angeles County, as a basis for levying property taxes.
Basis of Accounting.
A term used to refer to when revenues, expenditures,
expenses, and transfers -- and the related assets and liabilities -- are
recognized in the accounts and reported in the financial statements.
Biennial Budget.
A budget applicable to a two-year fiscal period.
Bill. A
term used to denote a law or statute passed by certain legislative bodies. A
bill has greater legal formality and standing than a resolution.
Bond. A
City may raise capital by issuing a written promise to pay a specified sum of
money called the face value, or principal amount, at a specified date or dates
in the future, together with periodic interest, at a special rate.
Budget. A
plan of financial and program operation which lists appropriations and the
means of financing them for a given time period. Redondo Beach?s budget
encompasses two fiscal years.
Budgetary Control.
The control or management of a government or enterprise in
accordance with an approved budget for the purpose of keeping expenditures
within the limitations of available appropriations and revenues.
Capital Improvements.
Physical improvements which typically cost over $5,000 and will
have a useful life of a year or more and involve the construction or
reconstruction of a physical asset. Examples are street resurfacing, storm
drain construction, recreation, facility construction, etc.
Capital Outlay.
A budget category which accounts for all furniture and equipment having a unit
cost of $1,000 or more and a useful life of more than one year.
City Charter.
Legal authority approved in 1949 by the voters of Redondo Beach establishing
the Council-Manager form of government.
Continuing Appropriation.
An appropriation that, once established, is automatically
renewed without further legislative action, period after period, until altered
or revoked.
Debt. An
obligation resulting from the borrowing of money or purchase of goods and
services. Debts of governments include bonds, time warrants and notes.
Debt Service Requirements.
The amount of money required to pay interest on outstanding debt, serial
maturities of principal for serial bonds and required contributions to
accumulate monies for future retirement of term bonds.
Department.
An organizational unit comprised of programs and sub-programs. Each
department is managed by a single director.
Division. A unit within a
Department that contains the necessary administrative services to function as
a self-contained program or service.
Eminent Domain.
The power of a government to acquire private property for public purposes. It
is used frequently to obtain real property that cannot be purchased from
owners in a voluntary transaction. When the power of eminent domain is
exercised, owners normally are compensated by the government in an amount
determined by the courts.
Encumbrances.
Financial commitments related to unperformed services or contracts for goods
for which part of an appropriation has been reserved.
Endowment.
Funds or property that are donated with either a temporary or permanent
restriction as to the use of principal.
Enterprise Fund.
A type of fund established to account for the total costs of
those governmental facilities and services which are operated in a manner
similar to a private business. Redondo Beach has two such funds - Harbor
Uplands and Harbor Tidelands.
Entitlement.
The amount of payment to which a state or local government is entitled
pursuant to an allocation formula contained in applicable statutes.
Executive Budget.
The aggregate of information, proposals and estimates prepared and submitted
to the legislative body by the chief executive and the budget office.
Expenditures.
Expenditures include current operating expenses which require the current or
future use of net current assets, service and capital outlays.
Expenses.
Decreases in net total assets. Expenses represent total cost of operations
during a period regardless of the timing of related expenditures.
Fiscal Year.
A twelve-month period of time used for budgeting, accounting or
tax collection purposes which may differ from a calendar year. California
municipal entities operate on a July 1 to June 30 fiscal basis.
Fixed Budget.
A budget setting forth dollar amounts that are not subject to
change based on the volume of goods or services to be provided.
Forfeiture.
The automatic loss of cash or other property as a penalty for
not complying with legal provisions and as compensation for the resulting
damages or losses. This term should not be confused with confiscation. The
latter term designates the actual taking over of the forfeited property by the
government. Even after property has been forfeited, it cannot be said to be
confiscated until the government claims it.
Formal Budgetary Integration.
The management control technique through which the annual
operating budget is recorded in the general ledger through the use of
budgetary accounts. It is intended to facilitate control over revenues and
expenditures during the year.
Franchise.
A special privilege granted by a government permitting the continuing use of
public property, such as City streets, and usually involving the elements of
monopoly and regulation.
Function.
A group of related activities aimed at accomplishing a major service or
regulatory program for which a government is responsible (e.g., public
safety).
Fund. An
independent fiscal and accounting term used to record all financial
transactions related to the specific purpose for which the fund was created.
Fund Balance.
The fund equity of governmental funds and trust funds.
Governmental Fund Types.
Funds used to account for the acquisition, use and balances of expendable
financial resources and the related current liabilities -- except those
accounted for in proprietary funds and fiduciary funds. In essence, these
funds are accounting segregations of financial resources.
Grant.
Contributions or gifts of cash or other assets from another governmental
entity to be used or expended for a specific purpose, activity or facility.
Impact Fees.
Fees charged to developers to cover, in whole or in part, the anticipated cost
of improvements that will be necessary as a result of the development (e.g.,
parks, sidewalks).
Infrastructure.
Facilities on which the continuance and growth of a community
depend on such as roads, water lines, sewers, public buildings, parks and so
forth.
In-Lieu Tax.
Tax levied in place of another tax or taxes. The State of
California provides in-lieu motor vehicle fees to local governments to
compensate for local personal property, not subject to property tax.
Interfund Transfers.
Transfers are classified into residual equity transfers and
operating transfers. Residual equity transfers are non-recurring or
non-routine transfers of equity between funds. Operating transfers reflect
ongoing operating subsidies between funds. An example of operating transfer
is when the General Fund would report its annual subsidy to fund capital
improvements in the Capital Projects Fund.
Internal Service Fund.
A fund used to account for the financing of goods or services provided by one
department or agency to the other departments or agencies of a government, or
to other governments, on a cost-reimbursement basis.
Lapse. As
applied to appropriations, the automatic termination of an appropriation.
Except for indeterminate appropriations, an appropriation is made for a
certain period of time. At the end of this period, any unexpended or
unencumbered balance thereof lapses, unless otherwise provided by law.
Levy. To
impose taxes, special assessments or service charges for the support of
governmental activities.
Maintenance and Operations.
A budget category which accounts for all the supplies, goods, and services
required to support a program or activity.
Measurement Focus.
The accounting convention that determines (1) which assets and which
liabilities are included on a government?s balance sheet and where they are
reported there, and (2) whether an operating statement presents information on
the flow of financial resources (revenues and expenditures) or information on
the flow of economic resources (revenues and expenses).
Modified Accrual Basis.
The accrual basis of accounting adapted to the governmental fund-type
measurement focus. Under it, revenues and other financial resource increments
(e.g., bond issue proceeds) are recognized when they become susceptible to
accrual, that is when they become both ?measurable? and ?available to finance
expenditures of the current period.? ?Available? means collectible in the
current period or soon enough thereafter to be used to pay liabilities of the
current period. Expenditures are recognized when the fund liability is
incurred except for (1) inventories of materials and supplies that may be
considered expenditures either when purchased or when used, and (2) prepaid
insurance and similar items that may be considered expenditures either when
paid for or when consumed. All governmental funds, expendable trust funds and
agency funds are accounted for using the modified accrual basis of accounting.
Mortgage Bonds.
Bonds secured by a mortgage against specified properties of a government,
usually its public utilities or other enterprises. If primarily payable from
enterprise revenues, they also are classed as revenue bonds.
Municipal.
In its broadest sense, an adjective denoting the state and all subordinate
units of government. In a more restricted sense, an adjective denoting a city
or village as opposed to other local governments.
Municipal Corporation.
A political and corporate body established pursuant to state statutes to
provide government services and regulations for its inhabitants. A municipal
corporation has defined boundaries and a population and usually is organized
with the consent of its residents. It usually has a seal and may sue and be
sued.
Objectives.
Departmental statements describing significant activities to be
accomplished during the fiscal year.
Objects of Expense.
The individual expenditure accounts used to record each type of
expenditure are categorized into groups of similar types of expenditure City
operations may incur. For budgeting purposes, objects of expenditure are
categorized into groups of similar types of expenditures called major
categories of expenditure. The principal objects of expenditure used in the
budget are:
�Personnel Services.
Salaries and fringe benefits paid to City
employees. Includes items such as health/dental insurance, retirement
contributions, educational and other benefits.
�Maintenance and
Operations. Supplies and other materials/services
used in the normal operations of City departments. Includes items such as
books, chemicals and construction materials, consultant contracts, vehicle use
charges, advertising, travel and utilities.
�Capital Outlay.
A budget category which budgets all equipment having a unit
cost of more than $1,000 and an estimated useful life of more than one year.
This includes furniture, automobiles, machinery, equipment and other types of
fixed assets.
Obligations.
Amounts a government may be required legally to meet out of its resources.
They include not only actual liabilities, but also unliquidated encumbrances.
Operating Budget.
A financial, programmatic, and organization plan, for
furthering the goals of the City Council through the City departments, which
does not include one-time capital improvement projects.
Ordinance.
A formal legislative enactment by the City Council. An
Ordinance has the full force and effect of law within the City boundaries,
unless it is in conflict with any higher form of law, such as a State Statute
or constitutional provision. An Ordinance has a higher legal standing than a
Resolution.
Performance Budget.
A budget that bases expenditures primarily upon measurable performance of
activities and work programs. A performance budget may also incorporate other
bases of expenditure classification, such as character and object class, but
these are secondary to activity performance.
Personnel.
Budget category used to denote salaries and all personnel associated benefits.
Principal.
In the context of bonds other than deep-discount debt, the face value or par
value of a bond or issue of bonds payable on stated dates of maturity.
Program. A
division of a department which specifies a particular group of activities.
Proposition 4.
Initiative constitutional amendment approved in the November
1979 ballot which imposes limits on allowable appropriations of state and
local governments. Article XIIIB of the California Constitution. Also
commonly known as the Gann Limit.
Proposition 13.
Enacted as Article XIIIA of the California Constitution.
Initiative constitutional amendment approved in the June 1978 ballot which
imposes a 1% limit on property taxes, various assessment restrictions and
limitations on the levy of new taxes.
Proposition 111 Limit.
On June 5, 1990, California voters approved Proposition 111, to amend Article
XIIIB, of the California Constitution, relating to the Gann Appropriations
Limit Initiative.
Proprietary Fund Types.
Sometimes referred to as income determination or commercial-type funds, the
classification used to account for a government?s ongoing organizations and
activities that are similar to those often found in the private sector (i.e.,
enterprise and internal revenue funds). All assets, liabilities, equities,
revenues, expenses and transfers relating to the government?s business and
quasi-business activities are accounted for through proprietary funds.
Reappropriation.
The amount of money budgeted for a project in a prior year, but
not spent, or encumbered, and which needs to be appropriated again in the
current year.
Reimbursements.
Payments remitted on behalf of another party, department, or fund. These
amounts are recorded as expenditures, or expenses, in the reimbursing fund,
and as reductions of the expenditure, or expense, in the fund that is
reimbursed.
Reserve.
An account used to earmark a portion of the fund balance as legally
segregated, for a specific use.
Resolution.
A special order of the City Council, which requires less legal
formality than an Ordinance, in terms of public notice, and the number of
public readings prior to approval. A Resolution has lower legal standing than
an Ordinance.
Revenues.
Amount received for taxes, fees, permits, licenses, interest, use of property,
and intergovernmental sources during the fiscal year.
Special Assessment.
A compulsory levy made against certain properties to defray all or part of the
cost of a specific capital improvement or service deemed to benefit primarily
those properties.
Special Revenue Funds.
This fund is separately administered because revenues are
restricted by the City Council, the State of California, the Federal
Government, or other governmental agencies as to how the City may spend them.
Statute. A
written law enacted by a duly organized and constituted legislative body.
Sub-Program.
A division of the program unit. Sub-programs are used to
further define a program to assist management and citizenry in better
assessing the costs of providing an identifiable service.
Subventions.
Revenue collected by the State (or other level of government),
which are allocated to the City on a formula basis. The major subventions
received by the City, from the State of California, include Motor Vehicle
In-Lieu, gasoline taxes, and homeowner?s property tax exemptions.
Taxes.
Compulsory charges levied by a government to finance services performed for
the common benefit. This term does not include specific charges made against
particular persons or property for current or permanent benefits, such as
special assessments. Neither does the term include charges for services
rendered only to those paying such charges (e.g., sewer service charges).
Tidelands. Harbor area land and water area granted
by the State of California to the City via Trust. In Redondo Beach: the
land and water area west of the mean high tide line of October 1935.
Uplands. Land and water area in the City's Harbor Area
east of the Tidelands line (see "Tidelands", above).
Workplan.
A schedule which identifies major action steps, time frames, and person(s)
responsible for accomplishment of a department, or division objective.
Acronyms: Below are definitions
for various acronyms commonly used in local government.
AB:
Assembly Bill
ADA:
American
Disabilities Act
AQMD:
Air Quality Management District
BCHD:
Beach Cities Health District
B&W:
Boating & Waterways
CAD:
Computer Aided Dispatch
CATIC:
California Anti Terrorism
Information Center
CDBG:
Community Development Block Grant
CIP:
Capital Improvement Project
CAFR:
Comprehensive Annual Financial
Report
CEQA:
California Environmental Quality
Act
CERT:
Community Emergency Response Team
CMT:
Constant Maturity Treasury
CNG:
Compressed Natural Gas
CSI:
Crime Scene Investigator
CSMFO:
California Society of Municipal
Finance Officers
CSO:
Community Services Officer
DARE:
Drug Awareness Resistance
Education
DDA:
Disposition and Development
Agreement
DOJ:
Department of Justice
DUI:
Driving under the Influence
EMS:
Emergency Medical Services
EPMC:
Employer-Paid Member Contribution
ERAF:
Educational Revenue Augmentation
Fund
FCC:
Federal Communications Commission
FEMA:
Federal Emergency Management
Agency
FTO:
Field Training Officer
FY:
Fiscal Year
GAAP:
General Accepted Accounting
Principles
GASB:
Governmental Accounting
Standards Board
GET:
Gang Enforcement
GFOA:
Government Finance Officers
Association
GREAT:
Gang Resistance Education &
Training
HHW:
Household Hazardous Waste
HS:
Health & Safety Code
HUD:
Housing & Urban Development
HVAC:
Heating/Ventilation &
Air-Conditioning
ICMA:
International City/County
Management Association
ICRMA:
Independent Cities Risk
Management Authority
ISTEA:
Intermodal Surface Transportation
Efficiency Act
IMS:
Information Management System
IT:
Information Technology
JTTF:
Joint Terrorism Task Force
LA:
Los Angeles
LAIF:
Local Agency Investment Fund
LA
IMPACT:
Los Angeles Interagency
Metropolitan Police Apprehension Crime Task Force
LLD:
Landscaping & Lighting District
MOU:
Memorandum of Understanding
M&O:
Maintenance & Operations
MTA:
Metropolitan Transit Authority
MTA-
US&C:
Municipal Treasurers? Association
of the United States & Canada
