Budget Flashcards
Operating Budget
Everyday expenditures
Capital budget
One-year budget for capital expenditures (long-term)
Line Item Budgeting
Projecting budget and adding inflation. Easy for public to understand but short-term focus.
Planning, Programming, Budgeting Systems (PPBS)
Planning through accomplishing goals set by department. Good for evaluating progress but time consuming and goals must be measurable.
Zero-Base Budgeting
Consider every aspect of operation. Effective but time consuming.
Performance-based Budgeting
Links funding to performance measures. Good for creating standards but time consuming and goals must be measurable.
Funding: Pay-As-You-Go
Fund capital projects with current funds.
Funding: Reserve Funds
Fund capital projects with saved money.
Funding: General Obligation Bonds
Use voter approved tax revenue to back debt. Can come from a variety of sources.
Revenue Bonds
Use fixed source of revenue to back dept. - full faith backing of project
Tax Increment Financing
(TIF) Allows area to have revenue increase to pay for capital projects. Usually in an area that is “blighted.” Use the anticipated increase in revenue from property tax to pay bonds.
Lease-Purchase
Rent-to-own so no borrowing needed.
Special Assessments
Allows special group to assess cost of public improvement (i.e. free street lights v. pay fee for fancy ones)
Taxes: Progressive
Tax rate increases as income rises
Taxes: Proportional
Tax rate is the same regardless of income.
