FIN 2018-02-21 Item 2B - Discussion - Financial Definitions

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2017 - 2018 Biennial Budget City of Tukwila, Washington BUDGET CALENDAR. The schedule of events that need to occur and the date or period of time for each to occur in the preparation, review and adoption of a budget. BUDGET DOCUMENT. The instrument used to present a comprehensive financial program to the appropriating governing body. The budget document usually consists of three parts. The first part contains a message from the budget -making authority, together with a summary of the proposed expenditures and the means of financing them. The second consists of schedules supporting the summary. These schedules show in detail the past years' actual revenues, expenditures and other data used in making the estimates. The third part is composed of drafts of the appropriation, revenue and borrowing measures necessary to put the budget into effect. BUDGET MESSAGE. A general discussion of the proposed budget as presented in writing by the budget -making authority to the legislative body. The budget message should contain an explanation of the principal budget items, an outline of the government's actual financial experience during the past period and its financial status at the time of the message, and recommendations regarding the financial policy for the coming period. BUDGETARY CONTROL. The control or management of a government or enterprise in accordance with an approved budget to keep expenditures within the limitations of available appropriations and available revenues. CAPITAL ASSETS. Long term assets such as land, improvements to land, easements, buildings and related improvements, vehicles, machinery and equipment, infrastructure, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. See also Fixed Assets. CAPITAL EXPENDITURES. Expenditures of current financial resources for constructing or purchasing capital assets. Under the modified accrual basis of accounting these acquired assets appear as expenditures in the fund statements, however under the current reporting model these acquired assets are recognized as assets in the basic financial statements. CAPITAL IMPROVEMENT PROGRAM. A program for capital expenditures to be incurred each year over a fixed period of years to meet capital needs arising from the long-term work program or other capital needs. It sets forth each project or other contemplated expenditure in which the government is to have a part and specifies the resources estimated to be available to finance the projected expenditures. CAPITAL PROJECTS FUND. A fund created to account for financial resources to be used for the acquisition or construction of major capital facilities. CAPITALIZATION THRESHOLD. Dollar value at which a government elects to capitalize tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. The City's capitalization threshold is established at a cost of $5,000.00, or greater. CONTINGENCY FUND. An account set aside for emergencies or other unanticipated needs not otherwise included as part of the budget. DEBT. An obligation resulting from the borrowing of money or from the purchase of goods and services. Debts of governments include bonds, time warrants and notes. DEBT SERVICE FUND. A fund established to account for the accumulation of resources for, and the payment of, general Tong -term debt principal and interest. 404 12