FY2023 Adopted Budget

GLOSSARY 28E Agreement: Agreement formed between various state and local governments in Iowa to make efficient uses of their powers by enabling them to provide joint services and facilities. Agency Funds: One of four types of fiduciary funds. Agency funds are used to report resources held by the reporting government in a purely custodial capacity (assets = liabilities). Agency funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. Actual Valuation: The estimated actual value placed upon real and personal property by the City Assessor as the basis for levying property taxes. Annual Report: This is the annual audited financial statements of the City compiled in accordance with Generally Accepted Accounting Principles. Assigned Fund Balance: The portion of the net position of a governmental fund that represents resources set aside by the government for a particular purpose. Balanced Budget : A balanced budget is one that has revenues sufficient to equal expenditures. The City will prepare an annual balanced budget for all operating funds. Bonded Debt: A written promise to pay a specified sum of money at a future date along with periodic interest. Proceeds from bonds are typically used for long-term debt to pay for construction of capital projects. Each bond issue has a rating assigned to it by an independent bond rating company. The rating is based on the City’s financial condition and has an impact on the bond bids and interest rates the City will pay on the bonds over their lifetime. The City’s bond rating agency is Moody’s Investors Service. Budget: A financial plan for a specific time period that estimates the expenditures and the means of financing those expenditures which are associated with all services and functions performed by the City. Budgetary Basis: The basis of accounting that the City uses to prepare, present, and monitor its adopted budget. The City uses an adjusted the Modified Accrual Basis of accounting as its budget basis. The modified accrual basis of accounting used in the preparation of budget is similar to the accounting basis used in the City’s Annual Report for the governmental funds, except for the treatment of interfund loans, loan repayments, and same fund transfers. Capital Improvements Program (CIP): A management tool used to assist in the scheduling, planning, and execution of a series of capital improvements over a five-year period. The CIP is prepared to cover a five-year period but is updated annually. It sets forth the Bond Rating: Activity: The organizational subdivision of a division.

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