Budget Message / Highlights - Metropolitan Water Reclamation ...

METROPOLITAN WATER RECLAMATION DISTRICT OF GREATER CHICAGO
2009 BUDGET
FINANCIAL GLOSSARY
Abatement: A complete or partial cancellation of a tax levy
imposed by a government.
Accrual Basis of Accounting: The basis of accounting
under which transactions are recognized when they occur,
regardless of the timing of cash receipts and disbursements.
Accrued: The accumulation of a receivable or payable
during a given period even though no explicit transaction
occurs within that period.
Activities: The major programs and projects performed by
an organizational unit.
Ad Valorem Tax: A tax levied in proportion to the value of
the property against which it is levied (also known as property
tax).
Appropriation: An amount of money in the budget,
authorized by the Board of Commissioners, for expenditure or
obligation within organizational units for specific purposes.
The Corporate Fund appropriates money for operating and
general purposes. The Capital Improvements Bond Fund
appropriates money for major improvements, plant expansion,
sewers, etc.
Assessed Valuation: The value of all taxable property within
the boundaries of the MWRDGC as a basis for levying taxes
(i.e., the property's value). See tax base.
Assets: Resources owned or held by the MWRDGC which
have monetary value.
Balance Sheet: A statement showing the financial position at
a given time, disclosing assets, liabilities and fund balances.
Bond: A written promise to pay a specified sum of money
(called the principal) at a specified date in the future, together
with periodic interest at a specified rate. In the budget
document, these payments are identified as debt service.
Bond Redemption and Interest Fund (Debt Service
Fund): Established to account for annual property tax levies
and certain other revenues, primarily interest on investments,
which are used for the payment of principal and interest of
general obligation bond issues.
Budget: A balanced financial plan for a given period of time,
which includes appropriations and tax levy ordinances for the
various sources of revenue which finance the various funds.
The budget is not only a financial plan; it also serves as a
policy guide, as an operations guide and as a communications
medium.
Capital Equipment: Fixed assets such as vehicles, marine
equipment, computers, furniture, technical instruments etc.,
which have a life expectancy of more than one year and a
value over $5,000.
Capital Projects Fund: Established to account for all
resources, principally bond proceeds and construction grants,
which are used for the acquisition or construction of capital
facilities. Included in Capital Projects Funds are the Capital
Improvements Bond Fund and the Construction Fund.
Capital Improvements Bond Fund: Established to account
for the proceeds of bonds authorized by the Illinois General
Assembly, government grants and certain other revenues, all
to be used in connection with improvements, replacements
and additions to the MWRDGC facilities.
Capital Improvements Program: A long-range plan of the
District for the construction, rehabilitation and modernization
of District-owned and operated infrastructure. It includes
plans to protect Lake Michigan from pollution, to clean up
approximately 200 miles of rivers and streams, and to reduce
the level of flooding within the District's jurisdiction.
Capital Outlay: Expenditures which result in the acquisition
of, or addition to, fixed assets including land, buildings,
improvements, machinery and equipment. Most equipment
or machinery is included in the annual operating budget.
Capital improvements such as acquisition of land,
construction and engineering expenses are included in the
Capital Budget.
Capitalized: Capital outlays recorded as additions to the
asset account, not expenses.
Carryover (Net Assets Appropriable): That resource
balance left after subtracting Current Liabilities and
Designated Fund Balances from Current Assets.
Cash Basis of Accounting: Revenues are not recorded until
cash is received, and expenditures are recorded only when
cash is disbursed.
Cash Management: A conscious effort to manage cash
flows in such a way that interest and penalties paid are
minimized and interest earned is maximized. Funds received
are deposited on the day of receipt and invested as soon as
the funds are available. The District maximizes the return on
all funds available for investment without sacrifice of safety
or necessary liquidity.
Classification of Budgetary Code Accounts: A manual
published yearly which specifies the official code
designations set forth in the annual budget for the purposes of
accounting and expenditure control. Budgetary code listings
for funds, organizations, locations, programs and line items
are included.
Commitment Items: Expenditure classifications established
to account for and budget the appropriations approved. Also
referred to as Line Item.
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