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Financial Management for Elected Officials January 2013 <br /> <br />Institute for Local Government www.ca-ilg.org 22 <br /> <br /> <br /> <br />Capital Outlay Spending that results in the acquisition of or addition to <br />the agency’s land, buildings, equipment, machinery, <br />vehicles, and the like to provide services to the community <br />(sometimes these are referred to as “fixed assets”). . <br /> <br />Cash Basis Accounting An accounting method in which revenues are entered into <br />the agency’s accounting system when the cash is received <br />and spending is entered into the system when the agency <br />makes a payment. To comply with generally accepted <br />accounting principles, local agencies must use accrual <br />basis accounting, rather than cash basis. Compare with <br />"Accrual Basis of Accounting." <br />Construction / Development Tax A tax imposed on development and/or the availability or <br />use of public agency services. See also “Development <br />Impact Fees.” <br /> <br />Contingency In budgets, an amount that is set aside to meet unforeseen <br />circumstances. <br /> <br />Debt Financing Issuing bonds and other kinds of debt instruments to <br />finance agency activities in service to the public. <br />Debt Service Annual principal and interest payments an agency owes on <br />money that it has borrowed. <br />Debt Service Funds One or more funds in an agency accounting system <br />established to track payments made to repay principal and <br />interest on debt. <br /> <br />Development Impact Fees Amounts charged in connection with land development to <br />pay for facilities or services that will be needed to serve <br />the new development that are tied to the proportionate <br />costs of providing those facilities or services to that <br />development. <br />Enterprise Fund A separate fund used to account for services supported <br />primarily by service charges. An example would be a <br />solid waste fund supported by charges solid waste service <br />receivers pay. <br /> <br />Entitlement Program A benefit program in which funding is allocated according <br />to eligibility criteria. All persons or agencies must meet <br />the criteria specified by federal or state laws in order to <br />receive the benefit. <br /> <br />Estimated Revenue The amount of revenue the agency expects receive during <br />a fiscal year. <br />Page 44 of 109