Budget Message / Highlights - Metropolitan Water Reclamation ...

METROPOLITAN WATER RECLAMATION DISTRICT OF GREATER CHICAGO
2009 BUDGET
FINANCIAL GLOSSARY (CONTINUED)
General Obligation Bonds: Bonds, the payment for which
the full faith and credit of the issuing government are
pledged.
Governmental Funds: Group of funds utilized to account
for revenues and expenditures in compliance with the legal
requirements and constraints of current statutes for
governmental agencies.
Grant: A contribution by one governmental unit to another
unit. The contribution is usually made to aid in the support of
a specified function, such as sewer construction, pollution
control, etc.
Home-Rule Unit: The principle or practice of selfgovernment
in the internal affairs of a dependent political
unit. In Illinois, any municipality with a population of more
than 25,000 is a home-rule unit unless it elects by referendum
not to be a home-rule unit. Any other municipality may elect
by referendum to become a home-rule unit.
Internal Control: Methods and procedures that are mainly
concerned with the authorization of transactions,
safeguarding of assets, and accuracy of the financial records.
Liabilities: Obligations incurred in past or current
transactions requiring present or future settlement.
Line Items: Expenditure classifications established to
account for and budget the appropriations approved. Also
referred to as Commitment Item.
Limited Tax Bonds: A form of nonreferendum bonding
authority granted by Illinois PA 89-385 allowing the District
to issue additional debt for projects initiated after October 1,
1991. Limited Tax Bonds can be issued to the extent that the
total debt service requirements of any new debt, when
combined with existing debt service, do not exceed the debt
service extension base established by the Act.
Midyear Reviews: Twice during the fiscal year (in May and
August), the current year budget is evaluated based on
spending to date and current projections. The primary areas
reviewed and analyzed are (1) current year budget versus
previous year revenues and expenditures; (2) year-to-date
expenditure and revenue status plus expenditure and revenue
projections for the remainder of the year; and (3) data to
support recommendations for budget transfers.
Modified Accrual Basis of Accounting: The basis of
accounting under which revenues are recognized when
measurable and available to pay liabilities, and expenditures
are recognized when the liability is incurred except for
interest on long-term debt which is recognized when due.
Multiplier: See Equalization.
Net Assets Appropriable: That resource balance left after
subtracting Current Liabilities and Designated Fund Balances
from Current Assets. Commonly referred to as carryover.
Net Present Value: A mathematical formula used to
measure the expected return on investments by calculating
how much money needs to be invested today to result in a
certain sum at a future time.
Object Classification: A grouping of expenditures on the
basis of goods or services purchased (e.g., personal services,
materials and supplies, equipment, etc.), also referred to as
Object of Expenditure.
Objectives: The yearly organizational levels of achievement
expected. A statement of purpose defined more specifically
than a goal. (A goal can include several related objectives.)
Objectives are listed in order of priorities with their
associated costs including estimates of salaries, equipment,
supplies, etc.
Obligations: Amounts which a government may be legally
required to meet out of its resources. They include not only
actual liabilities, but also encumbrances not yet paid.
Ordinance: A bill, resolution or order by means of which
appropriations are given legal effect. It is the method by
which the appropriation of the annual budget is enacted into
law by the Board of Commissioners per authority of state
statutes.
Other Postemployment Benefits (OPEB): Cost of retiree
health insurance benefits recognized over the active service
life of the employees rather than on a pay-as-you-go basis.
Performance: The measurable unit of types of work, related
to District activities and, where meaningful, the costs of
operation that are used to develop the costs for each unit of
activity (i.e., dollars per one million gallons of sewage treated).
Personal Property Replacement Tax: Since July 1979, this
income tax on corporations, partnerships and invested capital
of utilities replaces the personal property taxes previously
levied.
Pollution Control Facilities: The State of Illinois directly
assesses all pollution control facilities which have been
certified by the Pollution Control Board. Pollution control
facilities include any system, method, construction, device or
appliance appurtenant that is designed, constructed, installed
or operated for the primary purpose of eliminating,
preventing or reducing air and water pollution as defined in
the Environmental Protection Act. This does not include any
pollution control facility used for radioactive waste, nuclear
generation of electric power or for sewage disposal or
treatment.
Programs: The essential activities performed by the
MWRDGC such as collection, treatment, flood and pollution
control, etc., including specific and related sub-activities.
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