Laserfiche WebLink
City of Tukwila My WebLink |HelpSearch Tips |About |Sign Out
City of Tukwila <br />INFORMATIONAL MEMORANDUM <br />TO: Finance Committee <br />CC: Mayor Ekberg <br />FROM: Peggy McCarthy, Finance Director <br />BY: Vicky Carlsen, Deputy Finance Director <br />DATE: February 6, 2018 <br />SUBJECT: Financial Definitions <br />Issue <br />Allan Ekberg, Mayor <br />At the January 17,2018 Finance Committee, staff was asked to provide definitions of terms regularly used <br />when discussing financial matters in the City. <br />Discussion <br />The following terms are used regularly during financial discussions. <br />Allocated Budget <br />The monthly budget for the current year is calculated by analyzing the spending pattern from the previous <br />year and applying the same spending pattern to the current year. For example, if 10% of the budget was <br />spent in January of the previous year, then it would be assumed that 10% of the current year budget would <br />be spend in January of the current year. <br />Annual Budget <br />The annual budget is the original adopted budget plus any amendments adopted by Council. <br />Prorated Budget <br />The budget for the current year is simply divided by 12 and assumes that each month 12% of the budget <br />would be spent. <br />Spend Patterns <br />How much a department or line item spends each month over the course of a year. <br />Variance <br />The difference between the allocated budget and actuals. <br />For additional information, the Glossary of Terms found at the back of the Biennial Budget document has <br />been included as an attachment. <br />Recommendation <br />For information only. <br />Attachments <br />Glossary of Terms — 2017-2018 Biennial Budget document. <br />9 <br />