FY27 Proposed Budget

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. Cash Basis: 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.

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.

Ebilling: Electronic billing enables the City to digitally send invoices for utility services. The bill is generated by the City’s financial software solution and sent to the payer by email. 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. Enterprise Fund: Separate financial entity used for government operations that are financed mainly from user fees – see Business-Type Activities.

Equity Transfers: Non-recurring or non-routine transfers of equity between funds.

Expenditures: The cost of goods received and services rendered.

Fiduciary Funds: A category of funds used to report assets held in a trustee or agency capacity for others and which therefore cannot be used to support the government’s own programs. The fiduciary fund category includes pension (and other employee benefit) trust funds, investment trust funds, private-purpose trust funds, and agency funds. The City’s only fiduciary fund is an agency fund. Fiscal Year (FY): A 12-month time period to which the annual operating budget applies. In Iowa, the fiscal year begins July 1 and ends the following June 30.

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