Operating Budget 2025-2026

GLOSSARY OF TERMS ( continued )

Benefits

The benefit expenditures included in the budget are the Town's share of employee benefits. Benefits provided by the Town of Blacksburg include: FICA and Medicare taxes (Social Security), health, dental, and vision insurance, life insurance, short-term and long-term disability insurance, retirement, unemployment insurance, worker's compensation insurance, retiree health benefits, paid leave time, service awards, retention bonus programs, and a $50 holiday gift certificate. The amount of most benefits is based on a prescribed percentage of an employee's salary. This percentage varies per category. The Town pays 100 percent of unemployment, worker's compensation, gift certificate costs, life insurance, short-term and long-term disability insurance and the employer's share of FICA and Medicare taxes. The cost of health, dental, and vision insurance is paid by the Town on individual coverage elected by the employee. The Town pays 95 percent of the cost of retirement. A written promise to pay a specified sum of money (called the principal) at a specified date in the future, together with periodic interest at a specified rate. In the budget document, these payments are identified as debt service. Bonds may be used as an alternative to tax receipts to secure revenue for long-term capital improvements. General Obligation Bonds are debt approved by Town Council to which the “Full faith and credit” of the Town is pledged. The State Constitution mandates taxes on real property sufficient to pay the principal and interest of such bonds. A plan for the acquisition and allocation of resources to accomplish specified purposes. The term may be used to describe special purpose fiscal plans or parts of a fiscal plan, such as "the budget of the Police Department or the Capital Budget" or may relate to a fiscal plan for an entire jurisdiction, such as "the budget of the Town of Blacksburg”. A mechanism whereby expenditures are monitored to ensure compliance with legal provisions embodied in the annual appropriated budget approved by Town Council.

Bond

Budget

Budgetary Control

Calendar Year

Twelve months beginning January 1 and ending December 31.

Capital Asset

Assets of significant value and having a useful life of several years.

Capital Outlay

Capital assets, such as automobiles, machinery, furniture, equipment, etc., which have a life expectancy of more than one year and a value of at least five thousand dollars. Capital outlay also includes non-recurring expenditures less than five thousand dollars for items such as computers and other non-capital assets. 194