City of Plymouth Proposed 2022-2023 Budget - Flipbook - Page 228
City of Plymouth 2022 / 2023 Budget
09/20/2022
GLOSSARY OF FINANCIAL TERMS
Accrual Basis: The basis of accounting under which transactions are recognized when they
occur, regardless of the timing of estimated cash flows.
Accrued Expenditures: Expenses incurred but payment is not due until a later date.
ADA: The Americans with Disabilities Act is federal legislation intended to make American
society more accessible for individuals with disabilities.
Annual Financial Report: A governmental unit's official annual report prepared according
to governmental accounting standards and published as a matter of public record.
Assessed Value: The assessed value is determined by a property’s market value. Set by the
assessor, the assessed value when multiplied by two will give an approximate market value
of the property. The assessor is constitutionally required to set the assessed value at 50% of
the usual selling price or true cash value of the property.
Assigned Fund Balance: The portion of fund balance that represents resources that are
intended to be used by the City for specific purposes but are not restricted or committed.
These assignments are made by the City Manager and Finance Director.
Audit: Assessment prepared by an independent certified public accountant (CPA). The
primary objective of an audit is to determine if the city’s financial statements present fairly the
city’s financial position and results of operations in conformity with generally accepted
accounting principles (GAAP). In conjunction with their performance of an audit, it is
customary for an independent auditor to issue a Management Letter.
Bond: A written promise to pay a specified sum of money, called the face value or principal
amount, at a specified date in the future, called the maturity date, together with periodic
interest at a specified rate.
General Obligation (GO) Bond: A municipal bond in which the bond repayments
(interest and principal) are guaranteed by the total revenue generated by the relevant
government entity or agency
Limited Tax General Obligation (LTGO) Bond: A municipal bond that is guaranteed
by the municipal government's pledge to use all legal resources, including the levying
of property taxes up to a set statutory limit. If a municipality exhausts the property tax
resources for bond repayment within that limit, other revenue sources must be used
for bond repayment.
Unlimited Tax General Obligation (UTGO) Bond: A municipal bond that comes
with similar features as the limited-tax version, but with no limit on the property tax
increase
Bonded Debt: Portion of indebtedness represented by outstanding bonds.
23B-GLOSSARY
TABLE OF CONTENTS
APPENDIX A
