Operating Budget 2025-2026

GLOSSARY OF TERMS ( continued )

Capital Improvement Program A five-year plan for public facilities which results in construction or acquisition of capital assets, primarily buildings and infrastructure needs, such as street improvements. The program also includes funding for parks, water and sewer, stormwater sidewalks, major equipment, and other major capital items. Cash Management

A conscious effort to manage cash flows in such a way that interest and penalties paid are minimized and interest earned is maximized. Checks received are deposited the same day, bills are paid no sooner than the due date unless discounts can be obtained by paying earlier, future needs for cash are determined with exactness and cash on hand not needed immediately is invested in short-term interest-bearing investments. Expendable items that are consumable or have a short life span. Examples include office supplies, fuel, minor equipment, and asphalt. A statistical description of price levels provided by the U.S. Department of Labor. The index is used as a measure of the increase in the cost of living (i.e., economic inflation). A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Services rendered to a government by private firms, individuals, or other governmental agencies for items such as maintenance agreements, professional consulting services, audit services, etc. An increase in salaries to offset the adverse effect of inflation on compensation. Funds, defined by the State Auditor of Public Accounts, to finance and account for the annual payment of principal and interest on bonds. A cash payment to an outside party, or a transfer of funds to another accounting entity within the Town's financial system. A reservation of funds for an anticipated expenditure prior to actual payment for an item. Funds usually are reserved or encumbered once a contracted obligation has been entered into for an item, but prior to the cash payment actually being dispersed. A separate functional accounting entity within a certain fund type.

Commodities

Consumer Price Index (CPI)

Contingency

Contractual Services

Cost-of-Living Adjustment (COLA)

Debt Service Funds

Department/Office

Disbursement

Encumbrance

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