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City of Everett
2010 Operating Budget
Glossary
Page 15 - 1
BUDGET GLOSSARY
Accounting System: The total set of records and procedures used to record, classify, and report
information on the financial status and operations of an entity.
Accrual Basis Accounting: A method of accounting for revenues and expenses when earned or
incurred instead of when cash is received or spent.
Actual: Monies which have already been used or received as opposed to budgeted monies which are
estimates of funds that may be spent or received.
Actuarial Study: A statistical analysis of the future costs associated with pension programs, along with
a recommended annual program to meet these costs.
AFSCME: American Federation of State, County, and Municipal Employees.
Appropriation: A legal authorization granted by the City Council to make expenditures and to incur
obligations for a specific purpose or program. Usually granted for a one-year period.
Appropriation Ordinance: The official enactment by the City Council giving the legal authority for City
officials to obligate and expend resources.
Arbitrage: The additional investment earnings a municipality receives by borrowing (issuing bonds) at
tax exempt rates and investing the proceeds at higher yielding taxable rates. The difference is
the arbitrage amount which must be paid to the IRS.
Assessed Valuation: The estimated value placed upon real or personal property as the basis for
levying property taxes.
Audit: An examination to determine the accuracy and validity of records and reports by an agency
whose duty it is to make sure the City conforms with established procedures and policies.
Balanced Budget: Washington State statute requires that the City adopt a balanced budget based on
the following requirement: “Appropriations shall be limited to the total of estimated revenues and
the unencumbered fund balances estimated to be available at the close of the current fiscal
year.”

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2010 Operating Budget
Glossary
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The City adopts a statutorily balanced budget, but the city policy for the General Government
also requires a structurally balanced budget. In a structurally balanced budget, beginning fund
balance may not be used as a revenue source to balance the budget. Expenditure appropriations
are limited to current year revenues.
BARS: Stands for Budgeting, Accounting, Reporting System. The manual the State of Washington
requires governmental entities (i.e., counties and cities) to use.
Base Budget: The ongoing cost to maintain the current level of service. Inflation is included in the
budget without increasing any level of service.
Benefits: The City provided employee benefits such as social security insurance, retirement, worker's
compensation, life insurance, medical insurance and dental insurance.
Bond: A written promise to pay a specific sum of money (principal) at a specified future date along with
periodic interest rate. Bonds are typically used for long-term debt to pay for a particular capital
expenditure.
Budget: A plan of financial operation embodying an estimate of proposed expenditures for a given
period and the proposed means of financing them. Used without any modifier, the term usually
indicates a financial plan for a single fiscal year.
Budget Calendar: The schedule of key dates involved in the process of adopting and then executing
an adopted budget.
Budget Hearing: The public hearings conducted by City Council to consider and adopt the annual
budget.
Budget Policy: An overall plan to guide present and future courses of action regarding the coordination
of revenues and expenditures.
Capital Assets: Land, improvements to land, buildings, building improvements, vehicles, machinery,
equipment, works of art, infrastructure, and all other tangible or intangible assets that are used
in operations and have a useful life greater than one year.
Capital Budget: Major capital improvements which are beyond the routine operation of the city are
budgeted under separate capital project funds. These projects, which often require more than
one year for completion, include items such as expansion of treatment plants and reconstruction
of intersections. In total, these projects are referred to as the Capital Budget and are not
included in the annual operating budget.

City of Everett
2010 Operating Budget
Glossary
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Capital Improvement Program (CIP): A plan for capital expenditures to be incurred each year over
a fixed period of years, identifying the expected beginning and ending date, and the amount to
be expended in each year and the method of financing those expenditureCapital Outlays:
Annual operating expenditures for the acquisition of, or addition to, capital assets. These
expenditures include construction projects, land acquisition, major renovations or repairs to
existing grounds or facilities, and equipment purchases.
Capital Projects: Projects which purchase or construct capital assets. Typically a capital project
encompasses a purchase of land and/or the construction of a building or facility.
Cash Basis Accounting: The method of accounting where revenues are recorded when received and
expenditures are recorded when paid.
Certificate of Participation (COP): A type of lease-purchase financing wherein the bank serving as
Trustee issues Certificates of Participation representing an undivided proportionate interest in the
construction or purchase of real property. The City leases the property from the Trustee with an
option to purchase at the end of the lease term. The COP owners receive proportionate shares
of the stream of revenue paid by the City under the lease. COPs are backed by the full faith,
credit and resources of the City.
Consumer Price Index (CPI): A statistical description of price levels provided by the U.S. Department
of Labor. The index used as a measure of the increase in the cost of living.
Contingency: A budgetary reserve set aside for emergencies or unforeseen expenditures.
Cost of Living Adjustment (COLA): An increase in salaries to offset the adverse effect of inflation on
compensation.
Councilmanic Debt: Debt issued with the approval of the City Council, as opposed to debt which must
be approved by public vote. Councilmanic debt must not exceed 1.5 percent of the assessed
valuation.
Debt Service: The annual payment of principal and interest on the City's indebtedness.
Deficit: The excess of the liabilities of a fund over its assets. The excess of expenditures over revenues
during an accounting period; or, in the case of proprietary funds, the excess of expense over
income during an accounting period.
Depreciation: The periodic expiration of an asset’s useful life. Depreciation is a requirement, in
proprietary funds (such as enterprise and internal service funds).

City of Everett
2010 Operating Budget
Glossary
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Distinguished Budget Presentation Awards Program: A voluntary awards program administered
by
the Government Finance Officers Association to encourage governments to prepare effective
budget documents.
Employee Budget System: The City’s labor budgeting system - created and used for budgeting,
planning and forecasting purposes. Calculates labor costs by individual employee position.
EMS: Emergency Medical Services, Fund 153. This program provides materials, training, and
equipment for the delivery of prehospital patient care in the City. The primary revenue sources
for the EMS fund are a voted property tax levy and transport fees.
Encumbrance: The commitment of appropriated funds to purchase an item or service.
Enterprise Fund: A type of proprietary fund containing the activities of funds where the intent is for
the direct beneficiaries to pay for all costs of the fund through fees, or where a periodic
determination of revenues and expenses is desired by management.
Expenditures: Where accounts are kept on the accrual or modified accrual basis of accounting, the
costs of goods received or services rendered whether cash payments have been made or not.
Where accounts are kept on a cash basis, expenditures are recognized only when the cash
payments for the above purposes are made.
Fiscal Year: Any yearly accounting period, without regard to its relationship to a calendar year. The
fiscal year for the City of Everett begins on January 1 and ends on December 31.
FTE: Acronym for Full-time Equivalent. A numerical expression that indicates a given position’s
budgeted proportion to a “full-time” position. A position budgeted at 40 hours per week for 12
months equals 1.0 FTE. Other frequently budgeted levels are 20 hours per week (.5 FTE) to
show a position that has been split between two funds because the employee's responsibilities
directly affect two funds.
Fund: An accounting entity with its own self-balancing set of accounts recording cash and/or other
sources of revenues against expenditures for specific activities.
Fund Balance: The excess of an entity's assets over its liabilities in a particular fund. A negative fund
balance is sometimes called a deficit.
GAAFR: Stands for Governmental Accounting, Auditing and Financial Reporting. The "blue book" is
published by the Government Finance Officers Association to provide detailed guidance for the
application of accounting principals for government.

City of Everett
2010 Operating Budget
Glossary
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GAAP: Stands for Generally Accepted Accounting Principles, which are accounting and reporting
standards used for both private industry and government.
GASB: Government Accounting Standards Board regulates the rules and standards for all governmental
units.
General Fund: The City's principal operating fund, which is supported by taxes, fees, and other
revenues that may be used for any lawful purpose. The fund of the City that accounts for all
activity not specifically accounted for in other funds. Includes such operations as police, fire,
engineering, planning, finance and administration.
General Obligation Bonds: Bonds for which the full faith and credit of the issuing government are
pledged for payment.
GFOA: The purpose of the Government Finance Officers Association is to enhance and promote the
professional management of governments for the public benefit by identifying and developing financial
policies and practices and promoting them through education, training and leadership.
Governmental Funds: Funds generally used to account for tax-supported activities. The general fund,
special revenue funds, debt service funds and capital projects funds are all governmental funds.
Grants: A contribution of assets (usually cash) by one governmental unit or other organization to be
used or spent for a specified purpose, activity, or facility. Typically, these contributions are made
to local governments from the State and Federal governments.
IAC: Inter-agency Committee for Outdoor Recreation
Interfund Services/Revenue: The term "interfund" refers to transactions between individual Funds
of the City rather than transactions between the City and private companies, other governments
or vendors. From a budgeting and accounting perspective, the service provider (e.g.,
Purchasing) will budget for both the cost of providing service and the revenue received from the
service receiver (e.g., Utilities) for the service. In other words, one fund would be the customer
of another and both budgets must reflect this provider-customer relationship. As can be seen
from this description, interfund activities inflate both expenditures and revenues; this causes
what we refer to as "double budgeting."
Interfund Transfers: Amounts transferred from one City fund to another.
Intergovernmental Revenue: Grants, entitlements, shared revenues and payment for goods and
services by one government to another.

City of Everett
2010 Operating Budget
Glossary
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Internal Service Funds: A type of proprietary fund which accounts for the goods and services which
are provided to other units of the City and payment by the benefiting unit is intended to fund the
costs of providing such services.
Levy: To impose a tax, special assessment or service charge for the support of government activities.
The term most commonly refers to the real and personal property tax levy.
Levy Rate: The rate at which taxes, special assessments or service charges are imposed. For example,
the real and personal property tax levy is the rate at which property is taxed per $1,000 of
assessed valuation. The rate is determined by calculating the ratio of the maximum amount of
property tax revenue allowable under state law and the total assessed valuation within the taxing
district.
LEOFF: A state retirement system for the law enforcement and fire fighter personnel of the City.
Liability: Debt or other legal obligation arising out of transactions in the past which must be liquidated,
renewed or refunded at some future date.
Licenses and Permits: Charges for the issuance of licenses and permits. Licenses are required by
municipalities for selected trades, occupations and other activities for regulatory purposes.
Permits are issued to aid regulation of new business activities.
L.I.D.: A Local Improvement District (L.I.D.) is a statutorily authorized funding mechanism to finance
public improvements adjacent to, and for the benefit of, private property owners.
Mandate: A requirement imposed by one unit of government on another unit of government.
Modified Accrual Accounting: A basis of accounting in which expenditures are accrued but revenues
are accounted for on a cash basis. This accounting technique is a combination of cash and
accrual accounting since expenditures are immediately incurred as a liability while revenues are
not recorded until they are actually received or are "measurable" and "available for expenditure."
Since this type of accounting basis is a conservative financial approach, it is recommended as the
standard for most governmental funds.
Non-departmental Expenditures: Expenditures that are not directly related to the operations of a
single City department.
Obfuscate: To make obscure or to confuse.

City of Everett
2010 Operating Budget
Glossary
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Object of Expenditure: Expenditure classifications based upon the types or categories of goods and
services purchased. Typical objects of expenditure include personnel services (wages and
salaries), contracted services (utilities, maintenance contracts, etc.) supplies and materials, and
capital outlays.
Operating Budget: The annual appropriation to maintain the provision of City services to the public.
Other Services and Charges: A basic classification for services other than personnel services that are
needed by the City. This budget item includes professional services, communication, travel,
advertising, rentals and leases, insurance, public utility services, repairs and maintenance, and
miscellaneous.
Performance Objectives: A statement that describes in specific and measurable terms the results that
the program is expected to achieve within a certain time-frame.
Program: A broad function or area of responsibility of government services. It is a basic organizational
unit of government that is composed of a group of specific activities and operations directed at
attaining a common purpose or goal.
Proprietary Fund: See Enterprise Fund.
Proposed Budget: The recommended and unapproved City budget submitted to the City Council and
public in October/November of each year.
PERS: Stands for Public Employees Retirement System provided for all regular City employees, other
than law enforcement and fire fighter personnel, by the State of Washington.
Reappropriation: A legal authorization granted by the City Council to reappropriate expenditures to
the current budget year for a specific purpose or program that was budgeted but unexpended at
the end of the prior year.
Reserve: A segregation of assets to provide for future use toward a specified purpose.
Resources: Total dollars available for appropriations including estimated revenues, transfers and
beginning fund balances.
Revenue: Income received by the City to support programs or services to the community. It includes
such items as taxes, fees, user charges, grants, fines, forfeits, interest income and miscellaneous
revenue.

City of Everett
2010 Operating Budget
Glossary
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Revenue Estimate: A formal estimate of how much revenue will be earned from a specific source for
some future period; typically, one year.
Salaries and Wages: Amounts paid for services rendered by employees in accordance with rates,
hours, terms and conditions authorized by law or stated in employment contracts. This category
also includes overtime and seasonal help.
Service Measures: Specific quantitative measures of work performed within an activity or program
(i.e., total miles of streets cleaned). Also a quantitative measure of results obtained through a
program or activity (e.g., reduced incidence of vandalism due to new street lighting program).
Special Assessment Debt: Principal and interest on bonds related to Local Improvement Districts.
This type of debt is callable when money is available to make payments which occurs when
prepayments are received from property owners. The City budgets as if the entire debt will be
paid in the current year, although this is highly unlikely.
Special Revenue Funds: General government funds where the source of revenue is dedicated to a
specific purpose.
Strategic Outlook: Document created and used by the City of Everett for budget planning in a five-
year horizon.
Supplemental Appropriation: An appropriation approved by the Council after the initial budget
appropriation.
Taxes: Compulsory charges levied by a government for the purpose of financing services performed for
the common benefit. This term does not include specific charges made against particular
persons or property for current or permanent benefits such as special assessments, or charges
for services rendered only to those who pay; for example, sewer service charges.
Transfers: Internal movements of revenue and expenses among funds in the budget to provide needed
sources of funding for expenses incurred on behalf of another fund.
Trust Fund: Funds used to account for assets held by a government in a trustee capacity for individuals,
private organizations, other governments, and/or other funds.
Working Capital: The year-end balance of current assets less current liabilities.
Workload Measure: A unit of measure to identify the amount of work or product generated from
specific activities. They form the basis for determining the unit’s success at reaching its
performance objectives.

City of Everett
2010 Operating Budget
Glossary
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BUDGET ACRONYMS
ACT – Anti-Crime Team
ADA – Americans with Disabilities Act
AED – Automated External Defibrillator
AFSCME – American Federation of State, County and Municipal Employees
AHERA – Asbestos Hazard Emergency Response Act
ALERT – Allied law Enforcement Response Team
ALS – Advanced Life Support
ASARCO – American Smelting and Refining Company
AWC – Association of Washington Cities
B & O – Business and Occupation (excise tax)
BIA – Business Improvement Area
BLS – Basic Life Support
BRT – Bus Rapid Transit
CAA – Chief Administrative Assistant
CAD – Computer Aided Design
CAFR – Comprehensive Annual Financial Report
CALEA – Commission on Accreditation of Law Enforcement Agencies
CAM – Common Area Maintenance
CAP – Cleanup Action Plan
CDBG – Community Development Block Grant
CERT – Community Emergency Response Team
CFO – Chief Financial Officer
CHIP – Community Housing Improvement Program
CIP – Capital Improvement Program
CIU – Criminal Intelligence Unit
COBRA – Consolidated Omnibus Budget Reconciliation Act
COTS – Corrections Tracking System
CPR – Cardiopulmonary Resuscitation
CQ – Citizen Questions
CSO – Combined Sewer Overflow
CTR – Commute Trip Reduction
DOE – Department of Ecology
DOH – Department of Health
DOT – Department of Transportation
DSEIS – Draft Supplemental Environmental Impact Statement
DV – Domestic Violence

City of Everett
2010 Operating Budget
Glossary
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EAP – Employee Assistance Program
ECE-12 – Early Childhood Education (early to 12th grade)
EDMS – Electronic Document Management System
EEO – Equal Employment Opportunity
EHD – Electronic Home Detention
EIS – Environmental Impact Statement
EMC – Environmental Monitoring and Compliance
EMS - Emergency Management Services
EOC – Emergency Operations Center
EPAC – Everett Performing Arts Center
EPD – Everett Police Department
EPL – Everett Public Library
ESA – Endangered Species Act
EVAP – Emergency Vehicle Accident Prevention
EVTV – Everett Television
EWSA – Everett Water Service Area
FDM – Fire Data Management
FERC – Federal Energy Regulatory Commission
FMLA – Family Medical Leave Act
FTA - Federal Transit Authority
FTA – Federal Transportation Administration
FTE – Full Time Equivalent
FY – Fiscal Year
GAAP – Generally Accepted Accounting Principals
GECF – Greater Everett Community Foundation
GFOA – Government Finance Officers Association
GIS – Geographic Information Services
GO Debt – General Obligation Debt
HIPAA – Health Insurance Portability and Accountability Act
HOV – High Occupancy Vehicle
HR – Human Resources
HRIS – Human Resource Information System
HTF – (Affordable) Housing Trust Fund
HUD – Housing and Urban Development
ICAC – Internet Crimes Against Children
ICE – Immigration and Customs Enforcement
ICLEI – International Council for Local Environmental Issues
ICS – Incident Command System

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2010 Operating Budget
Glossary
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ID – Identification
IFMA – International Facility Management Association
ILL – Interlibrary Loan
ILS – Integrated Library System
IPD – Implicit Price Deflator
IPT – Industrial Pretreatment
IRS – Internal Revenue Service
ISO – Insurance Services Offices, Inc.
IT – Information Technology
ITIL – Information Technology Infrastructure Library
L&I – Labor & Industries
LAP – Language Assistance Program
LEOFF – Law Enforcement Officers’ and Fire Fighters (retirement system)
LGIP – Local Government Investment Pool
LID – Local Improvement District
LIMS – Laboratory Information Management System
LLC – Limited Liability Corporation
LTGO – (Limited Tax General Obligation (Bonds)
M&O – Maintenance & Operations
MCO – Multi-Company Operations
MGMT – Management
MSDS – Material Safety Data Sheet
MVD – Motor Vehicle Division/Department
NFPA 1851 – National Fire Protection Association
NIMS – National Incident Management System
NLC – National League of Cities
NMFS – National Marine Fisheries Service
NSF – Non Sufficient Funds
NSIS – North Snohomish, Island and Skagit County Higher Education Consortium
OCLC – Online Computer Library Center
OMWBE – Office of Minority & Women’s Business Enterprises
OSHA – Occupational Safety and Health Administration
PC – Personal Computer
PE – Project Engineer
PEO – Parking Enforcement Officer
PERS – Public Employee Retirement System
PFD – Public Facilities District
PILOT – Payment in Lieu of Tax

City of Everett
2010 Operating Budget
Glossary
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PILOT – Payment in Lieu of Tax
PR – Public Relations
PSCAA – Puget Sound Clean Air Agency
RCW - Revised Code of Washington
RDA – Recommended Daily Requirement
REET – Real Estate Excise Tax
RFID – Radio Frequency Identification
RFP – Request for Proposals
RMS – Records Management System
ROW – Right of Way
RPM – Resource and Project Management
RSO – Registered Sex Offender
RSS – Rich Site Summary
SAU - Special Assault Unit
SCADA – Supervisory Control and Data Acquisition system
SCBA – Self Contained Breathing Apparatus
SEPA – State Environmental Policy Act
SMART – Snohomish County Multi-Agency Response Team
SODA – Stay Out Of Drug Areas
SOG – Special Operations Group
SOP – Standard Operating Procedure
SQL – Structured Query Language
SRDTF – Snohomish Regional Drug Task Force
SRRWA – Snohomish River Regional Water Authority
UGA – Urban Growth Area
US – United States
USFWS – US Fish and Wildlife Services
USO – United Service Organizations
UW – University of Washington
VNS – Visiting Nurse Services
VRD – Variable Rate Demand (Bonds)
VRDB – Variable rate demand bonds
WAC – Washington Administrative Code
WAC – Washington Administrative Code
WFP – Water Filtration Plant
WPCF – Water Pollution Control Facility
WSDOE – Washington State Department of Ecology
WSDOT – Washington State Department of Transportation