Town of Blacksburg Adopted Operating Budget FY 2027

GLOSSARY OF TERMS ( continued )

Capital Outlay

An expenditure related to a capital asset, such as a vehicle, machinery, or equipment which has 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. A five-year financial plan for new and ongoing capital projects of at least fifteen thousand dollars, typically non-reoccurring in nature. Projects include major street improvements, construction of public facilities, equipment replacement, land acquisition, park and trail developments, utility improvements, and other projects that require a major initial investment. The first year of the CIP is appropriated into the budget and the other four years serves as a comprehensive financial plan. Capital projects are supported by the General Fund, enterprise funds, bond issues, and federal, state, and local grants. The CIP identifies capital needs and community priorities, develops long-range revenue and expenditure projections, and establishes projects to meet our goals. 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.

Capital Improvement Program

Cash Management

Commodities

Consumer Price Index (CPI)

Contingency

Contractual Services

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