FY2022

Capital Improvements Projects: The specific projects that make up the Capital Improvements Program. The projects involve construction, purchase, or renovation of city facilities or property. They are generally non-recurring major improvements to the City's physical plant which necessitate long-term financing and are permanent in nature. A capital improvement project is the improvement of land, buildings, or infrastructure and related expenditures that is greater than $25,000 and has a useful life of three years or more. Capital Outlay: Expenditures for fixed assets, such as equipment, remodeling, minor building improvements, and vehicles, that are funded from the operating budget and are at least $5,000. Since long-term financing is not necessary and expenditures of this type are of such recurring character, these items are not part of the Capital Improvements Program. A basis of accounting in which transactions are recognized only when cash is increased or decreased. Or, a basis of accounting in which transactions are recorded when cash is expended or received for goods and services which are sold. Committed Fund Balance: Self-imposed limitation imposed at highest level of decision making that requires formal action at the same level to remove. Commodities: Items or supplies needed for routine maintenance and operations. They include cleaning, maintenance and office supplies, repair materials, minor equipment, and tools. Contingency: Funds set aside, but not appropriated or approved for use. These funds could be used for unanticipated expenditure requirements, new programs, or to absorb unexpected revenue losses. Contractual Service: Services such as utilities, postage, printing, employee travel, repairs and rentals, which are purchased from private contractors. Debt Limit: Debt incurred as a general obligation of the City shall not exceed statutory limits: presently 5% of the total assessed value of property within the corporate limits as established by the City Assessor. Cash Basis:

Debt Service: Payment of principal and interest to holders of the City debt instruments.

Deficit: Excess of an entity's liabilities over its assets (a negative fund balance). The term may also be used to describe a situation where expenditures exceed revenues. Department : A major organizational unit in the City comprised of related work activities aimed at accomplishing a major service or regulatory program.

Division: The organizational subdivision of a department.

Employee Benefits: Contributions made by the City to designated funds to meet commitments or obligations for employee fringe benefits. Included are the City's share of costs for Social Security, Iowa Retirement System, and the other pension, medical, and life insurance plans.

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