2021-2022 Proposed Revised Biennial Operating and Capital Budget

Glossary of Terms The City of Arvada Operating and Capital Budget is structured to be easily understood and meaningful to both the general public and the organization. This glossary is provided to assist those unfamiliar with budgeting terms and a few terms specific to the Arvada financial planning process.

98-101 Funding – Since the electors of Arvada adopted a sales tax in 1969, the City Code has required that 60% of the first cent of sales tax revenue must be appropriated annually for capital projects or debt service. Codified as 98-101 in the Arvada Code of Ordinances, this funding is referred to as 98-101 funding.

Accrual Basis: A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent.

Advance Refunding: The payoff and re-issuance of bonds to obtain better interest rates and/or bond conditions.

Appropriation: Appropriation is a formal action by the City Council which approves the spending limits for the fiscal year for each fund.

Arvada Economic Development Association (AEDA): Arvada Economic Development Association provides start-up, existing or expanding businesses with the latest demographic, financial, business, and consumer research necessary to succeed in the City of Arvada.

Assessed Valuation: Assessed valuation is a valuation set upon real estate or other property by the County Assessor as a basis for levying taxes.

Asset: Resources owned or held that have monetary value.

Assigned Fund Balance: These are amounts that a government intends to use for a specific purpose.

Intent can be expressed by the governing body or by an official or body to which the governing body delegates authority.

Attrition: A method of achieving a reduction in personnel by not refilling the positions vacated through resignation, reassignment, transfer, retirement or means other than layoffs.

AURA: AURA stands for Arvada Urban Renewal Authority. AURA acquires and assembles property in order to redevelop blighted property located in the urban renewal district. The district in Arvada includes five active areas that are located throughout the City.

Authorized Positions: Employee positions, which are authorized in the adopted budget, to be filled during the year.

Bond: A long-term I.O.U. or promise to pay. Often bonds are issued to finance the construction of long term capital projects. It is a promise to repay a specified amount of money (the face amount of the bond) on a particular date (maturity date). Bonds come in two types: general obligation bonds are backed by the full faith, credit and taxing authority of the government and revenue bonds are backed only by a specific revenue stream, such as water user fees or sales tax.

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