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Bond Referendum – An election in which
registered voters vote on whether the Town will
be allowed to issue debt in the form of interest-
bearing bonds.
Budget – A financial plan containing estimated
expenditures and resources covering a fiscal year.
Budget Adjustment Transfer – the transfer
of funds between line accounts within a function
or across functional areas in accordance with
policy. Authority is granted by Town Council to
Budget Officer/Designee.
Budget Amendment – A revision of the
adopted budget that, when approved by the Town
Council, replaces the original provision. Budget
amendments occur throughout the fiscal year as
spending priorities shift.
Budget Calendar – The schedule of key dates
which the Town follows in the preparation and
adoption of the budget.
Budget Document – The official written
statement prepared by the Town’s staff and
presented to the Town Council containing the
proposed financial plan for the fiscal year.
Budget Message – A written summary of the
proposed budget to the Town Council which
discusses major budget issues and
recommendations.
Budget Ordinance – The official enactment by
the Council establishing the legal authority for
staff to obligate and expend funds.
CAFR – Comprehensive Annual Financial
Report. The official annual report of a
government.
Capital Improvement Plan (CIP) – A plan of
proposed capital outlay to be incurred each year
over a fixed number of years to meet capital
needs.
Capital Outlay – Outlays which result in the
acquisition (either new or replacement) or
additions to fixed assets having a significant value
($5,000 or more) and possessing a useful life of
more than one year.
Capital Project – Major construction,
acquisition, or renovation activities which add
value to physical assets or significantly increase
their useful life.
Capital Project Fund – A fund used to account
for financial resources accumulated for the
acquisition or construction of major capital
facilities.
Capital Reserve Fund - A type of account on a
municipality's balance sheet that is reserved for
long-term capital investment projects or any
other large and anticipated expense(s) that
will be incurred in the future. This type of reserve
fund is set aside to ensure that the company or
municipality has adequat to at least
partially finance the project.
Chart of Accounts – A chart that assigns a
unique number to each type of transaction and to
each budgetary unit in the organization.
COLA – A Cost-of-Living Adjustment is an
increase in salaries to offset the adverse effect of
inflation on compensation.
Consumer Price Index (CPI) – 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
(economic inflation).
Contingency Account – Account in which
funds are set aside for emergency and exceptional
expenditures that may become necessary during
the year and which have not otherwise been
provided for in the context of the annual
operating budget.
Debt Service – Payment of interest and
repayment of principal on Town debt.