Finance

Question 1

Amortization

Answer 1

Allows non-conforming land uses or structures to remain in place for a set period

Question 2

Canada and Mexico

Answer 2

Largest trading partners of the U.S.

Question 3

Capital Facilities Plan

Answer 3

Plan for infrastructure; Estimates future needs and sources of funding; Usually includes detailed 5-6 year schedule

Question 4

Capital Improvement Plan (CIP)

Answer 4

Based on availability of resources and needs based on forecasts and population projections; May detail potential financing through i.e. bongs, special districts, TIFs. Multi-year scheduling of public physical improvements based on fiscal analysis and population projections; Typically covers next 5 - 6 year period; Addresses long-term community needs

Question 5

Fiscal impact analysis

Answer 5

Assist city or county officials in determining if a project will generate sufficient revenue to defray necessary public service costs.

Question 6

General obligation bonds

Answer 6

Taxing power of the jurisdiction is pledged to pay interest upon, and retire the debt; Can be sold to finance permanent types of improvement such as schools, municipal buildings, parks, and rec facilities; Voter approval may be required

Question 7

REIT

Answer 7

real estate investment trusts

Question 8

Revenue bonds

Answer 8

Sold for projects that produce revenues; Are not backed by the full faith and credit of the local jurisdiction, but are financed in the long-term through service charges or fees

Question 9

Shopping center sizes

Answer 9

Community = over 100,000 sf Neighborhood = 30,000-100,000 sf Regional = over 300,000 sf

Question 10

Sizes of different types of shopping centers

Answer 10

Community (100-450K SF; mid-size dept store or discount store as anchor); Neighborhood (30-100K SF; convenience goods and personal services; Regional (300-1,000K SF; variety of general merchandise, apparel, furniture etc.)

Question 11

Structural unemployment

Answer 11

Mismatch between supply of labor and demand for labor in which supply of skills of labor force does not meet demand for skills due to changing technological requirements

Question 12

The ratio of an industry’s share of local emplyment divided by its share of the nation (or other higher level of givernment) is less than one

Answer 12

Importing

Question 13

Traditional budget process

Answer 13

Analyzes current econ and demo trends and conditions to estimate future budgetary need; Forecasts needs for next 4 - 6 years; Traditionally uses Line Item Budget

Question 14

Vernacular architecture

Answer 14

Uses locally available materials

Question 15

Work breakdown structure (WBS)

Answer 15

Start with deliverable in mind Work from general to specific Consistent and simple numbering system Identify tasks truly necessary to objective

Question 16

Zero-Base Budgeting (ZBB)

Answer 16

Not based on previous year’s budget; Each year’s budget starts at a base of zero, and each program and expenditure in the budget must be justified annually; Define “decision packages” tied to long-range plan objectives; Developed by Texas Instruments. 1970s Not based on previous year’s budget Each year starts at zero and each activity must be justified annually Involves breaking the budget down into “decision packages”

Question 17

Horizontal vs Vertical equity

Answer 17

Horizontal - same treatment for all (level tax) Vertical - differential treatment (progressive tax)

Question 18

Impact fee / linkage fee

Answer 18

Sometimes assess on new commercial or industrial development to address new need for affordable housing triggered by additional workers

Question 19

Laissez Faire Philosophy

Answer 19

1800’s Adam Smith and invisible hand Free market economy Unrestricted competition benefits society the most Exploits the poor

Question 20

Land given the highest values in sector theory

Answer 20

Along major roadways

Question 21

Lease-Purchase Agreements

Answer 21

Facility is constructed by a private company or authority, and then leased by the municipality. Rental over the years of the lease will have paid the total original cost plus interest, and at end of lease period title conveyed to the municipality without

Question 22

Line item budgets

Answer 22

Traditional municipal budget; Divides expenditures into categories such as equipment and personnel; Are not easily utilized as management tool

Question 23

Location quotient

Answer 23

Measures the concentration of industry in an geographic area relative to a larger area (% of workers employed by the industry in the sample area divided by the % of workers employed in the same industry in the larger area); LQ>1 means product exported, LQ

Question 24

Performance budgets

Answer 24

Organizes expenditures by the services they fund and a set of evaluation standards for each services; Readily used as a management tool; Examples: Planned Programming Budgetary System (PPBS), Zero-Base Budgeting, Dayton System

Question 25

Tax Reform Act of 1986

Answer 25

Established the low income housing tax credit