Audit
Prepared by an independent certified public accountant (CPA), the primary objective of an audit is to determine if the City’s financial statements fairly represent the City’s financial position and results of operations in conformity with generally accepted accounting principles. In conjunction with performing an audit, independent auditors customarily issue a Management Letter stating the adequacy of the City’s internal controls as well as recommending improvements to the City’s financial management practices.
Balanced Budget
A budget in which planned expenditures do not exceed planned revenues.
Bond Refinancing
The pay off and re-issuance of bonds to obtain better interest rates and/or bond conditions.
Bonds
A certificate of debt issued by an entity, guaranteeing payment of the original investments, plus interest.
Bradley Burns Uniform Local Sales & Use Tax
A 1% local sales tax is collected by the State of California as part of the larger sales and use tax levied on the total retail price of tangible personal property based on business location. Use Tax is the complement of sales tax and imposed on the purchaser, usually for goods purchased out-of-state for local use. The difference between operating revenues and operating expenditures. The Budget Surplus may be used for ongoing expenses (as opposed to year-end balance, which may be used only for one-time expenses). The Council has the sole responsibility for adopting the City’s budget and may amend or supplement the budget at any time after adoption by majority vote. A state statute enacted in 1970 that requires state and local agencies to identify the significant environmental impacts of their actions and to avoid or mitigate those impacts, if feasible (www.opr.ca.gov/ceqa/). The agency responsible for programming and allocating funds for the construction of highway, passenger rail and transit improvements throughout California (www.catc.ca.gov).
Budget Surplus
Budget Amendment
California Environmental Quality Act (CEQA) California Transportation Commission (CTC)
Capital Equipment
Equipment (fixed assets) with an initial individual cost of $10,000 or more and an expected useful life greater than five years, such as automobiles, computers and furniture.
Capital Expenditure
Expenditure for tangible property with an initial individual cost of $10,000 or more and an expected useful life greater than five years per item.
Capital Improvement Program Budget (CIP)
A multi-year financial plan for construction of infrastructure, facilities, and rehabilitation such as buildings, streets, storm drains, and recreational facilities.
Certificates of Participation (COPs)
Tax-exempt bonds issued by state entities usually secured with revenue from an equipment or facility lease. COPs enable governmental entities to finance capital projects without technically issuing long-term debt. This can be advantageous, as the issuance of long-term debt is commonly subject to voter approval and other state constitutional and statutory requirements. COPs have been used by municipalities to pay for prisons, office buildings, vehicles, and even parks. Comprised of five City Council members, four of whom who are elected by registered voters of their respective districts and the Mayor to be elected at-large. The City Council adopts legislation, sets policy, adjudicates issues, and establishes the budget of the City.
City Council (CC)
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