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TextBudget Glossary and Acronyms
Here are some of the key terms and acronyms used in the budget for the County of Fairfax. Click on the first letter of the word, acronym or phrase you are seeking, or scroll to browse the whole list.
A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z
A
Account – A separate financial reporting unit. All
budgetary transactions are recorded in accounts.
Accounting Period – A period of time (e.g., one month,
one year) where the County determines its financial position and results
of operations.
Accrual – Accrual accounting/budgeting refers to a
method of accounting/budgeting in which revenues are recorded when earned
and outlays are recorded when goods are received or services are
performed, even though the actual receipts and disbursements
of cash may occur, in whole or in part, in a different fiscal
period.
Accrual Basis of Accounting – A method of accounting
where revenues are recorded when service is given and expenses are
recognized when the benefit is received.
Actuarial – A person or methodology that makes determinations
of required contributions to achieve future funding levels by addressing
risk and time.
ADA - Americans with Disabilities Act
ADC - Adult Detention Center
ADHC - Adult Day Health Care
Ad Valorem Tax – A tax levied on the assessed value of real
estate and personal property. This tax is also known as property
tax.
Adopted Budget Plan – A plan of financial operations approved
by the Board of Supervisors highlighting major changes made to the County
Executive's Advertised Budget Plan by the Board of Supervisors. The
Adopted Budget Plan reflects approved tax rates and estimates of
revenues, expenditures, transfers, agency goals, objectives and
performance data. Sections are included to show major
budgetary/financial policies and guidelines used in the fiscal management
of the County.
Advertised Budget Plan – A plan of financial operations
submitted by the County Executive to the Board of Supervisors. This
plan reflects estimated revenues, expenditures and transfers, as well as
agency goals, objectives and performance data. In addition,
sections are included to show major budgetary/financial policies and
guidelines used in the fiscal management of the County. Also called
the Executive Budget.
AEOC - Alternate Emergency Operations Center
AFIS - A multi-jurisdictional Automated Fingerprint
Identification System
Amortization – The reduction of debt through regular payments
of principal and interest sufficient to retire the debt instrument at a
predetermined date known as maturity.
Appropriation – A specific amount of money authorized by the
Board of Supervisors to a specified unit of the County government to make
expenditures and to incur obligations for specific purposes.
Appropriation authorizations expire at the end of the fiscal year.
ASAP - Alcohol Safety Action Program (Fund 117)
ASSB - Advisory Social Services Board
Assessed Property Value – The value set upon real estate or
other property by the County Property Appraiser (Department of Tax
Administration) as a basis for levying real estate tax.
Assessment – The official valuation of property for purposes of
taxation.
Assessment Ratio - The ratio of the assessed value of a taxed
item to the market value of that item. In Fairfax County, real
estate is assessed at 100 percent of market value as of January 1 each
year.
B
Balanced Budget – A budget is balanced when planned
funds or total revenues equal planned expenditures, that is, total
outlays or disbursements, for a fiscal year.
Basis Point – Equal to 1/100 of one percent. For
example, if interest rates rise from 6.50 percent to 6.75 percent, the
difference is referred to as an increase of 25 basis points.
Beginning Balance – Unexpended funds from the previous fiscal
year that may be used to make payments during the current fiscal
year. This is also referred to as a carryover balance.
Benchmarking – The systematic comparison of performance with
other jurisdictions in order to discover best practices that will enhance
performance. Benchmarking involves determining the quality of
products, services and practices by measuring critical factors (e.g., how
effective, how much a product or service costs) and comparing the results
to those of highly regarded competitors.
Benefits – Payments to which participants may be entitled under
a pension plan, including pension benefits, death benefits and benefits
due on termination of employment.
Bond – A written promise to pay a specified sum of money
(called the principal) at a specified date in the future, together with
periodic interest at a specified rate. In the budget document,
these payments are identified as debt service. Bonds may be used as
an alternative to tax receipts to secure revenue for long-term capital
improvements. The two major categories are General Obligation Bonds
(G.O. Bonds) and Revenue Bonds. The majority of bonds issued for
County and School construction projects are known as General Obligation
Bonds.
Bond Covenants – A legally enforceable promise made to the
bondholders from the issuer, generally in relation to the source of
repayment funding.
Bond Rating – Fairfax County uses the services of the nation’s
three primary bond rating services – Moody’s Investors Service, Standard
& Poor’s, and Fitch – to perform credit analyses to determine the
probability of an issuer of debt defaulting partially or fully.
Fairfax County has maintained a Triple A bond rating status from Moody’s
since 1975, Standard and Poor’s since 1978, and Fitch since 1997.
Bonds – A certificate of debt issued by an entity, guaranteeing
payment of the original investment, plus interest, by a specified future
date.
BPOL - Business, Professional and Occupational
License
BPR - Business Process Redesign
Business, Professional and Occupational License (BPOL) –
Businesses, professions, trades and occupations are assessed a license
tax based on gross receipts for the prior year, without deductions.
Exclusions are deductions from the definition of gross receipts. Section
4-7.2-1(B) of the Fairfax County Code and Chapter 37 of Title 58.1 of the
Code of Virginia lists the only deductions that can be claimed.
Individuals engaged in home occupations and who are self-employed must
also file if their gross receipts are greater than $10,000. Receipts of
venture capital or other investment funds are excluded from taxation
except commissions and fees.
Budget – A plan for the acquisition and allocation of resources
to accomplish specified purposes. The term may be used to describe
special purpose fiscal plans or parts of a fiscal plan, such as "the
budget of the Police Department," "the Capital Budget" or
"the School Board's budget," or it may relate to a fiscal plan
for an entire jurisdiction, such as "the budget of Fairfax
County."
Budget Calendar – A schedule of key dates which the County
follows in the preparation, adoption and administration of the
budget.
Budget Message – Included in the Overview Volume, also referred
to as the County Executive Summary, the budget message provides
a summary of the most important aspects of the budget, changes from
previous fiscal years, and recommendations regarding the County’s
financial policy for the upcoming period.
Budget Process Redesign – An ongoing effort to improve both the
budget development process and the budget document.
Build-Out – This refers to the time in the life cycle of the
County when no incorporated property remains undeveloped. All
construction from this point forward is renovation, retrofitting or land
cleared through the demolition of existing structures.
Business Process Redesign – A methodology that seeks to improve
customer service by focusing on redesigning current processes, and
possibly incorporating automation-based productivity improvements.
Redesign efforts require an Information Strategy Plan (ISP) which
identifies and prioritizes the business areas to be redesigned. New
or enhanced business system applications (BSAs) are usually required to
improve the flow of information across organizational boundaries.
C
CAD - Computer Aided Dispatch
CAFR - Comprehensive Annual Financial Report
Calendar Year – Twelve months beginning January 1 and ending
December 31.
Capital Equipment – Equipment such as vehicles,
furniture, technical instruments, etc., which have a life expectancy of
more than one year and a value of over $5,000. Equipment with a
value of less than $5,000 is operating equipment.
Capital Expenditure – A direct expenditure that results in or
contributes to the acquisition or construction of a capital asset.
The expenditure may be for new construction, addition, replacement or
renovations to buildings that increase their value, or major alteration
of a capital asset. Capital assets include land, infrastructure,
buildings, equipment, vehicles and other tangible and intangible assets
that have useful lives longer than one year.
Capital Improvement Program – A five-year plan for public
facilities which addresses the construction or acquisition of fixed
assets, primarily buildings but also including parks, sewers, sidewalks,
etc., and major items of capital equipment and operating expenses related
to new facilities.
Capital Projects Funds – Funds, defined by the State Auditor of
Public Accounts, that account for the acquisition and/or construction of
major capital facilities or capital improvements other than sewers.
Carryover – The process by which certain unspent or
unencumbered funds previously approved by the Board of Supervisors and
for commitments to pay for goods and services at the end of one fiscal
year are reappropriated in the next fiscal year. Typically, funds
carried over are nonrecurring expenditures, such as capital projects or
capital equipment items.
Cash Management – An effort to manage cash flows in such a way
that interest and penalties paid are minimized and interest earned is
maximized.
Cash Management System – A system of financial practices which
ensures that sufficient cash is available on a daily basis for payment of
County obligations when due.
CCAR - Child Care Assistance and Referral program
CCFAC - Consolidated Community Funding Advisory
Committee
CCFP - Consolidated Community Funding Pool
CDBG - Community Development Block Grant
CERF - Computer Equipment Replacement Fund
CERT - Community Emergency Response Team
Character – A class of expenditures, such as salaries,
operating expenses, recovered costs, or capital equipment.
CHINS - Child In Need of Supervision or Services
CIP - Capital Improvement Program
COG - Washington Metropolitan Council of
Governments
Comprehensive Annual Financial Report – This official
annual report, prepared by the Department of Finance, presents the status
of the County’s finances in a standardized format. The CAFR is
organized by fund and contains two basic types of information: (1) a
balance sheet that compares assets with liabilities and fund balance, and
(2) an operating statement that compares revenues and expenditures.
Consolidated Community Funding Pool – A
separately-budgeted pool of County funding, located in Fund 118, which
was established in FY 1998 to facilitate the implementation of a
competitive funding process through which community-based organizations,
which are primarily human-services oriented, will be awarded County
funding on a competitive basis. These organizations previously had
received County funding either as a contribution or through contracts
with specific County agencies. Since FY 2001, the County has
awarded grants from this pool on a two-year funding cycle to provide
increased stability for the community-based organizations.
Consolidated Plan – The U.S. Department of Housing and Urban
Development (HUD) requires a Consolidated Plan application which combines
the planning and application submission processes for several HUD
programs: Community Development Block Grant, HOME Investment Partnerships
Program, Emergency Shelter Grant, and Housing Opportunities for Persons
with AIDS. Citizen participation is required as part of the process
and is accomplished through representation on the Consolidated Plan
Review Committee (CPRC), involvement in public hearings held on housing
and community development needs, and participation in public hearings at
which the Board of Supervisors takes action on the allocation of funds as
recommended by the CPRC.
Consumer Price Index (CPI) – CPI is a measure of the price
level of a fixed “market basket” of goods and services relative to the
value of that same basket in a designated base period. Measures for
two population groups are currently published by the Bureau of Labor
Statistics, CPI-U and CPI-W. CPI-U is based on a market basket
determined by expenditure patterns of all urban households including
professionals, self-employed, the poor, the unemployed, retired
persons, and urban wage-earners and clerical workers.
The CPI-W represents expenditure patterns of only urban
wage-earner and clerical-worker families including sales workers, craft
workers, service workers, and laborers. The CPI is used as
appropriate to adjust for inflation.
Contingency – An appropriation of funds available to cover
unforeseen events that occur during the fiscal year.
Contributory Agencies – Governmental and nongovernmental
organizations that are supported in part by contributions from the
County. Examples include the Northern Virginia Regional Commission,
the Northern Virginia Regional Park Authority, and the Arts Council of
Fairfax County, and community agencies such as Volunteer Fairfax.
Cost Center – Expenditure categories within a program area that
relate to specific organizational goals or objectives. Each cost
center may consist of an entire agency or a part of an agency. The
Civil Service Commission, for example, being small and having a single
purpose, is treated as a single cost center. The Office of the
County Executive consists of four cost centers: Administration of County
Policy, Office of Equity Programs, Office of Internal Audit, and Office
of Partnerships.
CPAN - Courts Public Access Network
CPI - Consumer Price Index
CRA - Clinic Room Aide
CRIS - Community Resident Information System (kiosks
for Fairfax County residents)
Cross-Cutting Initiative – A cross-cutting initiative involves
the participation of two or more government agencies in addressing a
challenge or implementing a program in Fairfax County. For example,
there is a coordinated effort to address the challenge of West Nile Virus
control by several agencies including the Health Department, the Park
Authority, the Department of Public Works and Environmental Services, the
Office of Public Affairs and others.
CSA - Comprehensive Services Act
CSB - Fairfax-Falls Church Community Services Board
(Fund 106)
CSU - Court Service Unit (Juvenile and Domestic
Relations District Court)
CTB - Commonwealth Transportation Board
D
Debt Service Funds -- Funds defined by the State
Auditor of Public Accounts to finance and account for the payment of
principal and interest on borrowed funds such as bonds. Fairfax
County has three debt service funds, one for school debt, one for the
Wastewater Management Program, and one for bonds issued to finance
capital expenditures for all other agencies (County debt service).
These funds receive revenue primarily by transfers from the General Fund,
except for the Sewer Debt Service Fund, which is supported by sewer
service fees.
Defeasance – A provision that voids a bond when the
borrower sets aside cash or bonds sufficient to service the borrower’s
debt. When a bond issue is defeased, the borrower sets aside cash
to pay off the bonds; therefore, the outstanding debt and cash offset
each other on the balance sheet and do not need to be recorded.
Deferred Retirement Option Plan – A provision within a defined
benefit retirement system that allows an employee who reaches retirement
eligibility to agree to defer leaving employment until a specified date
in the future, on the condition of being deemed to have retired for
purposes of the retirement system. The employee continues to receive a
salary and fringe benefits; however, contributions on the employees’
behalf to the retirement system cease, while the payments to the employee
would receive if he/she was retired are invested and provided when the
employee reaches the agreed upon date (no more than three years).
Deficit – The excess of liabilities over assets – or
expenditures over revenues – in a fund over an accounting period.
Depreciation – The decrease in value of physical assets due to
use and the passage of time.
Derivatives – Complex investments, which are largely
unregulated, especially when compared with stocks and bonds. These
are securities whose value is derived from some other variable such as
interest rates or foreign currencies. Fairfax County does not
invest in derivatives.
Disbursement -- An expenditure or a transfer of funds to
another accounting entity within the County financial system. Total
disbursements equal the sum of expenditures and transfers out to other
funds.
Distinguished Budget Presentation Program – A voluntary program
administered by the Government Finance Officers Association to encourage
governments to publish efficiently organized and easily readable budget
documents.
DROP - Deferred Retirement Option Plan
DPWES - Department of Public Works and Environmental
Services
E
EAC - Employees Advisory Council
EAP - Employee Assistance Program
Efficiency – One of the four performance indicators in
Fairfax County’s Family of Performance Measures. This indicator
reflects inputs used per unit of output and is typically expressed in
terms of cost per unit or productivity.
Employees Advisory Council (EAC) - Established by the Fairfax
County Merit System Ordinance to provide a continuing medium through
which all employees in the competitive service, both Schools and County,
may contribute their advice and suggestions for the improvement of the
career merit system and other aspects of the government of Fairfax
County.
EMS - Emergency Medical Service
Encumbrance – An obligation incurred in the form of purchase
orders, contracts and similar items that will become payable when the
goods are delivered or the services rendered. An encumbrance is an
obligation of funding for an anticipated expenditure prior to actual
payment for an item. Funds are usually reserved or set aside and
encumbered once a contracted obligation has been entered.
Enterprise Funds -- Funds, defined by the State Auditor of
Public Accounts to account for operations that are financed and operated
in a manner similar to private business enterprises. An enterprise
fund is a self-supporting fund design to account for activities supported
by user charges. For example, funds which support the Wastewater
Management Program are classified as enterprise funds.
EOC - Emergency Operations Center
Equalization -- An annual assessment of real estate to ensure
that assessments accurately reflect current market values.
Equalization revenue is the annual increase or decrease in collected
revenue resulting from adjustments to the assessment of existing property
in the County. This annual increase or decrease is due to value
changes rather than to new construction.
Escrow – Money or property held in the custody of a third party
that is returned only after the fulfillment of specific conditions.
ESOL - English as a Second Language
Expenditure – The disbursement of appropriated funds to
purchase goods and/or services.
F
Fairfax County Identification Number (FCIN) – This is a
10- to 30-digit code that identifies a specific item as being procured by
an entity within Fairfax County government.
FCEDA - Fairfax County Economic Development
Authority
FCIN - Fairfax County Identification Number
FCPA - Fairfax County Park Authority
FCPL - Fairfax County Public Library
FCPS - Fairfax County Public Schools
FCRHA - Fairfax County Redevelopment and Housing
Authority
Fiduciary Funds -- Fiduciary funds are used to account for assets held in a trustee or agency capacity for others and which, therefore, cannot be used to support the County’s own programs. The County maintains two types of fiduciary funds – pension trust funds to account for the assets of its pension plans, held by the County under the terms of formal trust agreements, and agency funds to account for assets received, held and disbursed by the County on behalf of various outside organizations.
Financial Forecast -- A computer-aided financial model
that estimates all future revenues and disbursements based on assumptions
of future financial and economic conditions.
Fines and Forfeitures – Consists of a variety of fees, fines
and forfeitures collected by the County.
Fiscal Planning Resolution -- A legally binding document
prepared by the Department of Management and Budget identifying changes
made by the Board of Supervisors to the Advertised Budget Plan during the
adoption of the annual budget. Fiscal Planning Resolutions approved
by the Board subsequent to the Adopted Budget Plan change only transfers
between funds. These documents are used at the annual or quarterly
reviews whenever changes in fund transfers occur.
Fiscal Restraint – The practice of restraining growth in
expenditures and disbursements to stay within revenue forecasts.
Fiscal Year (FY) -- In Fairfax County, the twelve months
beginning July 1 and ending the following June 30. (The
Commonwealth of Virginia’s fiscal year begins on July 1. The
federal government's fiscal year begins October 1).
Fixed Asset – Items the County owns that have a considerable
cost and a useful life exceeding two years, such as computers, furniture,
equipment and vehicles.
Fleet – The vehicles owned and operated by the County.
Forfeiture – The automatic loss of property, including cash, as
a penalty for breaking the law, or as compensation for losses resulting
from illegal activities. Once property has been forfeited, the
County may claim it, resulting in confiscation of the property.
Fringe Benefits -- The fringe benefit expenditures included in
the budget are the County's share of employees' fringe benefits.
Fringe benefits provided by Fairfax County include FICA (Social
Security), health insurance, dental insurance, life insurance,
retirement, and Unemployment and Workers’ Compensation. The
County's share of most fringe benefits is based on a set percentage of
employee salaries. This percentage varies per category, e.g.,
Uniformed Fire and Rescue Employees; Uniformed Deputy Sheriffs; Police
Officers; Trade, Manual and Custodial Service Employees; and General
County Employees.
Fund – A set of interrelated accounts to record
revenues and expenditures associated with a specific purpose. A
fund is also a fiscal and accounting entity with a self-balancing set of
accounts recording cash and other financial resources, together with all
related liabilities and residual equities, or balances and changes
therein. Funds are segregated for the purpose of carrying out
specific activities or attaining certain objectives in accordance with
special regulations, restrictions or limitations.
Fund Balance -- Represents the residual funding on an annual
basis from revenues and transfers-in less expenditures and
transfers-out. This fund balance may be reserved for a specific
purpose or unreserved and used for future requirements. A fund
balance also reflects the fund equity of all funds.
Fund Type -- A group of funds that have similar activities,
objectives, or funding sources as defined by the State Auditor of Public
Accounts. Examples include Special Revenue Funds and Debt Service
Funds.
FY - Fiscal Year
G
GAAP - Generally Accepted Accounting Principles
GASB – This refers to the Governmental Accounting Standards Board which is currently the source of generally accepted accounting principles (GAAP) used by state and local governments in the United States. It is a private, non-governmental organization. The GASB has issued Statements, Interpretations, Technical Bulletins, and Concept Statements defining GAAP for state and local governments since 1984.
GASB 34 – In June 1999, GASB Statement No. 34 (or GASB 34) set new GAAP requirements for reporting major capital assets, including infrastructure such as roads, bridges, water and sewer facilities, and dams. Fairfax County has implemented the Governmental Accounting Standards Board’s (GASB) Statement Number 34, Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments, financial reporting model. This standard changed the entire reporting process for local governments, requiring new entity-wide financial statements, in addition to the current fund statements and other additional reports such as Management Discussion and Analysis.
GASB 45 – Beginning in FY 2008, the County’s financial statements are required to implement Governmental Accounting Standards Board (GASB) Statement No. 45 for other post-employment benefits (OPEBs) including health care, life insurance, and other non-pension benefits offered to retirees. This new standard addresses how local governments should account for and report their costs related to post-employment health care and other non-pension benefits, such as the County’s retiree health benefit subsidy. Historically, the County’s subsidy was funded on a pay-as-you-go basis. GASB 45 requires that the County accrue the cost of the retiree health subsidy and other post-employment benefits during the period of employees’ active employment, while the benefits are being earned, and disclose the unfunded actuarial accrued liability in order to accurately account for the total future cost of post-employment benefits and the financial impact on the County. This funding methodology mirrors the funding approach used for pension/retirement benefits. The County has established Fund 603, OPEB Trust Fund, to fund the cost of post-employment health care and other non-pension benefits. Fund 603 will allow the County to capture long-term investment returns and make progress towards reducing the unfunded liability.
General Fund -- The primary tax and operating fund for
County Governmental Activities used to account for all County revenues
and expenditures which are not accounted for in other funds, and which
are used for the general operating functions of County agencies.
Revenues are derived primarily from general property taxes, local sales
tax, utility taxes, license and permit fees, and state shared
taxes. General Fund expenditures include the costs of the general
County government and transfers to other funds, principally to fund the
operations of the Fairfax County Public School system, the Fairfax-Falls
Church Community Services Board, Metro, the Fairfax CONNECTOR, and County
and School system debt service requirements.
General Fund Disbursements -- Direct expenditures for
County services such as Police or Welfare expenses and transfers from the
General Fund to Other County funds such as School Operations or Metro
Operations.
General Obligation Bond – Bonds for which the full faith and
credit of the issuing government are pledged. County general
obligation debt can only be approved by voter referendum. The State
Constitution mandates that taxes on real property be sufficient to pay
the principal and interest of such bonds.
GFOA - Government Finance
Officers Association
GIS - Geographic
Information System
Goal -- A general statement of purpose. A goal provides a
framework within which the program unit operates; it reflects realistic
constraints upon the unit providing the service. A goal statement
speaks generally toward end results rather than specific actions, e.g.,
"To provide maternity, infant and child health care and/or case
management to at risk women, infants, and children in order to achieve
optimum health and well being." Also see Objective.
Governmental Funds -- Governmental funds are typically
used to account for most of a government’s activities, including those
that are tax-supported. The County maintains the following types of
governmental funds: a general fund to account for all activities not
required to be accounted for in another fund, special revenue funds, a
debt service fund, and capital projects funds.
Grant – A contribution by one governmental unit to
another unit. The contribution is usually made to aid in the
support of a specified function.
H
Health Maintenance Organization (HMO) – A form of
health insurance combining a range of coverages in a group basis. A group
of doctors and other medical professionals offer care through the HMO for
a flat monthly rate with no deductibles. However, only visits to
professionals within the HMO network are covered by the policy. All
visits, prescriptions and other care must be cleared by the HMO in order
to be covered. A primary physician within the HMO handles
referrals.
HIPAA - Health Insurance
Portability and Accountability Act
HMO - Health Maintenance
Organization
I
ICMA - International
City/County Management Association
iNet - Institutional Network
Inflation – A rise in price levels caused by an increase in
available money and credit beyond the proportion of available
goods. Also known as too many dollars chasing too few goods.
Infrastructure – Public domain fixed assets including roads,
curbs, gutters, sidewalks, drainage systems, lighting systems and other
similar items that have value only to the users.
INOVA – Inova Health System is a not-for-profit health
care system based in Northern Virginia that consists of hospitals and
other health services including emergency and urgent care centers, home
care, nursing homes, mental health and blood donor services, as well as
wellness classes.
Input – The value of resources used to produce an
output. Input can be staff, budget dollars, work hours, etc.
Internal Service Funds -- Funds established to finance
and account for services furnished by a designated County agency to other
County agencies, which charges those agencies for the goods and services
provided. An example of an Internal Service Fund is Fund 503,
Department of Vehicle Services.
Interest Income – Revenue associated with the County
cash management activities of investing fund balances.
K
Key County Indicators -- Key County Indicators are high-level, countywide measures, organized by vision element, that help assess if Fairfax County government is meeting the needs of citizens and positively impacting the community as a whole.
L
LAN - Local Area Network
Line Item – A specific expenditure category within an agency
budget, e.g., rent, travel, motor pool services, postage, printing,
office supplies, etc.
M
Managed Reserve -- A reserve, held in the General Fund,
which equals 2.0 percent of the General Fund disbursements.
Established by the Board of Supervisors on January 25, 1982, the purpose
of the reserve is to provide temporary financing for emergency needs and
to permit orderly adjustment to changes resulting from the sudden,
catastrophic termination of anticipated revenue sources.
Management by Objectives -- A method of management of
County programs which measures attainment or
progress toward pre-defined objectives. This method evolved into
the County’s performance measurement system.
Management Initiatives --
Changes to internal business practices undertaken by County managers on
their own initiative to improve efficiency, productivity and customer
satisfaction.
Mandate – A requirement from a higher level of
government that a lower level government perform a task in a particular
way or in conformance with a particular standard.
Market Pay -- A compensation level that is competitive and
consistent with the regional market. The County analyzes the
comparability of employee salaries to the market in a number of different
ways. A “Market Index” has been developed that factors in the
Consumer Price Index, federal wage adjustments, and the Employment Cost
Index (which includes state, local and private sector salaries).
The index is designed to gauge the competitiveness of County pay
scales in general.
Measurement – A variety of methods used to assess the results
achieved and improvements still required in a process or system.
Measurement gives the basis for continuous improvement by helping
evaluate what is working and what is not working.
Merit Grant -- A position with full benefits and full civil
service grievances, although the employment term is limited by the grant
specifications. The position is funded by a specific grant.
At the end of the grant position, the person is the first eligible for
hire for another similar position in the County. Also see
Position.
Merit Regular -- A position with full benefits, full civil
service grievance, and 52 work weeks in a year. Also see
Position.
Mission Statement - A mission statement is a broad,
philosophical statement of the purpose of an agency, specifying the
fundamental reasons for its existence. A mission statement
describes what an organization is in business to do. Therefore, it
also serves as a guiding road map.
Modified Accrual Basis – The basis of accounting under which
revenues are recognized when measurable and available to pay liabilities,
and expenditures are recognized when the liability is incurred except for
interest on long-term debt which is recognized when due, and the
non-current portion of accrued vacation and sick leave which is recorded
in general long-term liability. The General Fund and debt service
fund budgets are prepared on the modified accrual basis of accounting
except that encumbrances are treated like expenditures.
Municipal Bond -- Bond issued by a state, local or another
government authority especially in the U.S. The interest is exempt
from U.S. Federal taxation and usually from state taxation within the
state of issue, as is the case in Virginia.
MWCOG - Metropolitan Washington Council of Governments
N
NACo - National Association
of Counties
Net Debt as a Percent of Estimated Market Value -- Total debt
(less debt that is self-supported by revenue-producing projects), divided
by the total market value of all taxable property within the County
expressed as a percentage. Since property taxes are a primary
source of revenue for the repayment of debt, this measure identifies the
debt burden compared with the worth of the revenue-generating property
base.
Net Total Expenditures -- See Total Budget.
NOVARIS - Northern Virginia
Regional Identification System
NVCC - Northern Virginia
Community College
NVCT - Northern Virginia
Conservation Trust
NVFS - Northern Virginia
Family Services
NVRC - Northern Virginia
Regional Commission
NVRPA - Northern Virginia
Regional Park Authority
NVSWCD - Northern Virginia
Soil and Water Conservation District
NVTC - Northern Virginia
Transportation Commission
O
Objective -- A statement of anticipated level of achievement; usually time limited and quantifiable. Within the objective, specific statements with regard to targets and/or standards often are included, e.g., "To respond to 90 percent of ambulance calls within a 5-minute response time."
Operating Budget – A budget for general revenues and
expenditures such as salaries, utilities and supplies.
Operating Equipment -- Equipment that has a life
expectancy of more than one year and a value of less than $5,000 dollars.
Equipment with a value greater than $5,000 dollars is capital
equipment.
Operating Expenses -- A category of recurring expenses, other
than salaries and capital equipment costs, which covers expenditures
necessary to maintain facilities, collect revenues, provide services, and
otherwise carry out the agency's goals. Typical line items under
this character are office supplies, printing, postage, transportation and
utilities.
Ordinance – A formal legislative enactment by the County that
carries the full force and effect of the law within the boundaries of
Fairfax County unless in conflict with any higher form of law, such as
the Commonwealth of Virginia or the federal government.
Outcome -- Qualitative consequences associated with a program
service, e.g., reduction in fire deaths or percent of juveniles not
reconvicted within 12 months. Also refers to quality performance
measures of effectiveness and of achieving goals.
Output -- Quantity or number of units produced. Outputs
are activity-oriented, measurable, and usually
under managerial control. Also refers to process performance
measures of efficiency and productivity, that is, per capita
expenditures, transactions per day, etc.
P
Pay for Performance -- A system of pay and appraisal
that is based on an employee’s performance. An ongoing dialogue
between employees and supervisors regarding performance and expectations
is essential to the successful implementation of this system.
Paydown Construction -- Capital construction funded with
current year General Fund revenues as opposed to construction financed
through the issuance of bonds. This is a method of paying for
capital projects that relies on current tax and grant revenues rather
than by debt. This is also referred to as "pay-as-you-go"
construction.
Pension Fund – This is a fund that accounts for the
accumulation of resources to be used for retirement benefit payments to
retired County employees eligible for such benefits.
Per Capita – A measurement of the proportion of some statistic
to an individual resident determined by dividing the statistic by the
current population.
Performance Budget – A budget wherein expenditures are based
primarily upon measurable performance activities and work programs.
Performance Indicators -- As used in Fairfax County’s
Performance Measurement System, these indicators represent the four types
of measures that comprise the Family of Measures and consist of output,
efficiency, service quality and outcome.
Performance Measurement -- The regular collection of specific
information regarding the results of service in Fairfax County, and which
determines how effective and/or efficient a program is in achieving its
objectives. The County’s performance measurement methodology links
agency mission and cost center goals (broad) to quantified objectives
(specific) of what will be accomplished during the fiscal year.
These objectives are then linked to a series of indicators that
present a balanced picture of performance, i.e., output, efficiency,
service quality and outcome.
Performance Measurement System – The County’s methodology for
monitoring performance measures, and in particularly outcomes.
Permit Revenue – Fees imposed on construction-related
activities and for non-construction permits such as sign permits, wetland
permits, etc.
Personal Property -- Property, other than real estate
identified for purposes of taxation, including personally owned items, as
well as corporate and business equipment and property. Examples
include automobiles, motorcycles, boats, trailers, airplanes, business
furnishings and manufacturing equipment. Goods held for sale by
manufacturers, wholesalers or retailers are not included.
Personal Property Tax Relief Act of 1998 (PPTRA) – Legislation
approved by the Virginia General Assembly that phases out the Personal
Property Tax on the first $20,000 of the value for vehicles owned by
individuals. By FY 2002, the PPTRA reduced the Personal Property
Taxes paid by citizens by 70 percent with an offsetting reimbursement
paid to the County by the Commonwealth. Under the original approved
plan, taxes paid by individuals were to be reduced by 100 percent in
FY 2003. Due to the state’s lower than anticipated General
Fund revenue growth, the reimbursement has remained at 70
percent since FY 2003. The 2004 General Assembly approved
legislation that will cap Personal Property Tax reimbursement in
FY 2007 at the FY 2005 level. In subsequent years, the level
of Personal Property Taxes may fall unless the tax rate is
increased.
Personnel Services -- A category of expenditures, which
primarily covers salaries, overtime and shift differential paid to County
employees and also includes certain fringe benefit costs.
Planning System -- Refers to the relationship between the
Annual Budget, the Comprehensive Plan, and the 5-year Capital Improvement
Plan.
Position -- A group of duties and responsibilities, as
prescribed by an office or agency, to be performed by a person on a
full-time or part-time basis.
The status of a position is not to be confused with the status of the employee. For the purpose of the County's budget, the following definitions are used solely in describing the status and funding of positions:
An established position is a position that has been classified and
assigned a pay grade.
An authorized position has been approved for establishment by the Board
of Supervisors. The authorized position is always shown as a
single, not a partial position. Staff-Year Equivalency (SYE)
reflects whether positions are authorized for full-time (40 hours per
week) or part-time. A full-time position would appear in the budget
as one authorized position and one staff-year equivalent
(1/1.0 SYE). A half-time position would be indicated as one
authorized position and 0.5 staff-year equivalents (1/0.5 SYE).
The following defines the types of positions in Fairfax County. They can be either full or part-time status.
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A regular position is a career position, which falls within all
provisions of the Merit System Ordinance.
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An exempt position does not fall within the provisions of the Merit
System Ordinance. It includes elected and appointed
positions.
-
An exempt limited term position or exempt part-time position is
established to meet a temporary workload not exceeding 48 weeks.
It does not fall within the provisions of the Merit System
Ordinance.
Cooperative funding of some positions occurs between the federal and state governments and Fairfax County. Numerous funding and reimbursement mechanisms exist. The County's share of a position's authorized funding level is that portion of a position's salary and/or fringe benefits paid by the County which is over and above the amount paid by the state or federal government either based on the County's pay classification schedule or based on a formal funding agreement. The share of state or federal funding varies depending upon the eligibility of each individual agency and type of position.
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A state position is a position established and authorized by the
state. These positions may be partially or fully funded by the
state.
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County supplement is the portion of a state position's authorized
salary (based on the County's compensation plan) that exceeds the
state's maximum funding level. This difference is fully paid by
the County.
Position Turnover -- An accounting debit which allows
for gross salary projections to be reduced due to anticipated and normal
position vacancies, delays in filling vacancies, and historical position
turnover information.
PPTRA - Personal Property
Tax Relief Act
PPO - Preferred Provider
Option
Preferred Provider Option (PPO) – This refers to a self-insured
preferred provider health plan.
Present Value – The discounted
value of a future amount of cash, assuming a given rate of interest, to
take into account the time value of money. Stated differently, a
dollar is worth a dollar today, but is worth less tomorrow.
Prime Interest Rate -- The rate of interest charged by banks to
their preferred customers.
Program – Group activities, operations or organizational units
directed to attaining specific objectives and achievements and budgeted
as a sub-unit of a department.
Program Area -- A grouping of County agencies with related
countywide goals. Under each program area, individual agencies
participate in activities to support that program area's goals. The
Public Safety Program Area, for example, includes the Police Department
and the Fire and Rescue Department, among others. The Auditor of
Public Accounts for the Commonwealth of Virginia provides direction on
which agencies are included in each program area.
Program Budget -- A statement and plan, which identifies and
classifies, total expenditures and revenues by activity or program.
Budgets are aggregated into program areas. This is in contrast to a
line-item budget, which identifies expenditures only by objects for which
money is spent, e.g., personnel services, operating expenses, recovered
costs or capital equipment.
Property Tax – A tax levied on the assessed value of real and
personal property. This tax is also known as an ad valorem
tax.
Proprietary Funds -- Proprietary funds are enterprise and
internal service funds used to account for business-type activities that
are similar to the private sector and in which fees are charged for goods
or services. They are related to assets, liabilities, equities,
revenues, expenses and transfers. The County maintains both types
of proprietary funds – enterprise funds to account for the Integrated
Sewer System and internal service funds to account for certain
centralized services that are provided internally to other departments
such as Vehicle Services and Document Services.
PSCC - Public Safety
Communications Center
PSCN - Public Safety
Communications Network
PSOHC - Public Safety
Occupational Health Center
PSTOC - Public Safety and
Transportation Operations Center
P/T - Part-Time
R
Real Property -- Real estate, including land and
improvements (buildings, fences, pavements, etc.) classified for purposes
of assessment.
Recovered Costs -- Reimbursements to an agency for specific
services provided to another agency. Recovered costs, or Work
Performed for Others, are reflected as a negative figure in the providing
agency's budget, thus offsetting expenditures. An example is the
reimbursement received by the Department of Information Technology from
other agencies for telecommunication services.
Rec-PAC – Rec-PAC (Pretty Awesome Children), operated by
Fairfax County Park Authority, is a six-week structured recreation
program offered during the summer with emphasis on leisure skills
designed for elementary school children.
Refunding – Retiring an outstanding bond issue at
maturity (sometimes done before maturity date if rate is favorable) by
using money from the sale of a new bond offering. In other words,
issuing bonds to pay off the old bonds. In an Advance Refunding, a
new bond issuance is used to pay off another outstanding bond. The
new bond will often be issued at a lower rate than the older outstanding
bond. Typically, the proceeds from the new bond are invested and
when the older bonds become callable, they are paid off with the invested
proceeds. In a Crossover Refunding, the revenue stream pledged to
secure the securities being refunded is being used to pay off debt on the
refunded securities until they mature.
Reserves – A portion of the fund balance or retained earnings
legally segregated for specific purposes.
Revenue – Monies received from all sources (with exception of
fund balances) that will be used to fund expenditures in a fiscal
year.
Revenue Bond -- A municipal bond secured by the revenues of the
project for which it is issued. Revenue Bonds are those bonds whose
principal and interest are payable exclusively from earnings of an
enterprise fund. Sewer and utility bonds are typically issued as
revenue bonds. The County also issues Lease Revenue bonds, a form
of revenue bond in which the payments are secured by a lease on the
property built or improved with the proceeds of the bond sale.
Revenue Forecast – A projection of future County revenue
collections.
Revenue Stabilization Fund –
In FY 2000, the Board of Supervisors approved the creation of this fund
to provide a mechanism for maintaining a balanced budget without
resorting to tax increases and/or expenditure reductions that aggravate
the stresses imposed by the cyclical nature of the economy. This
fund maintains a balance of 3 percent of General Fund
Disbursements.
S
SAC - Selection Advisory Committee
SACC - School-Age Child Care
Sales Tax – Tax imposed on the taxable sales of all final
goods.
SBE - Small Business Enterprise
SCBA - Self-Contained Breathing Apparatus
SCC - State Corporation Commission
School Board Budget -- Includes the School Operating Fund, the
School Food and Nutrition Services Fund, the School Debt Service Fund,
the School Insurance Fund, the School Construction Fund, the School
Central Procurement Fund, the School Health Benefits Trust Fund and the
Educational Employees' Supplementary Retirement Fund, identifying both
expenditure levels and sources of revenue. The Board of Supervisors
may increase or decrease the School Board budget but normally does so
only at the fund level (i.e., by increasing or decreasing the General
Fund Transfer to the School Operating Fund without specifying how the
change is to be applied). By state law, the Supervisors may not
make specific program or line item changes, but may make changes in
certain major classifications (e.g., instruction, overhead, maintenance,
etc.). The Board of Supervisors has not exercised its right to make
any such changes in recent years.
School Board Transfer -- A transfer out of funds from the
General Fund to the School Operating Fund. State law requires that
this transfer be approved by the Board of Supervisors by May 1, for the
next fiscal year.
Self-Insurance Fund – This internal service fund is used to
centrally manage the employees’ health and life insurance benefit
packages, the workers’ compensation program, and the County’s insurance
coverage of real and personal property.
Service Quality -- Degree to which customers are satisfied with
a program, or how accurately or timely, a service is provided.
Set-Aside Reserve -- A reserve made up from available balances
materializing throughout one or more fiscal years which are not required
to support disbursements of a legal or emergency nature and are held (set
aside) for future funding requirements.
Sewer Funds -- A group of self-sufficient funds that support
the Wastewater Management Program. Revenues consist of bond sales,
availability fees (a one-time fee paid before connection to the system
and used to defray the cost of major plant and trunk construction),
connection charges (a one-time fee to defray the cost of the lateral
connection between a building and the trunk), service charges (quarterly
fees based on water usage which defray operating costs and debt service),
and interest on invested funds. Expenditures consist of
construction costs, debt service, and the cost of operating and
maintaining the collection and treatment systems.
Special Revenue Funds -- Funds defined by the State Auditor of
Public Accounts to account for the proceeds of specific revenue sources
that are legally restricted to expenditures for specific purposes.
These funds account for the revenues and expenditures related to Fairfax
County's state and federal grants, the operation of the Fairfax County
Public Schools, and specific taxing districts that are principally
financed by special assessment tax levies in those districts.
Staff-Year Equivalency (SYE) -- This figure reflects whether
authorized positions are full-time or part-time. A position
authorized for 40 hours per week is reflected in the budget as one
authorized position with a staff-year equivalency (SYE) of one (1/1.0
SYE). In comparison, a position authorized for 20 hours per week
would be indicated as one authorized position with a SYE of 0.5 (1/0.5
SYE).
Strategic Plan – A document outlining long-term goals, critical
issues and action plans to increase the organization’s effectiveness in
attaining its mission, priorities, goals and objectives. Strategic
planning starts with examining the present, envisioning the future,
choosing how to get there, and making it happen.
Strategic Planning Process - The strategic planning process
provides the County the opportunity to identify individual agency
missions and goals in support of the public need, action steps to achieve
those goals and measures of progress and success in meeting strategic
goals. Strategic planning helps ensure that limited resources are
appropriately allocated to achieve the objectives of the community as
determined by the Board of Supervisors.
Supplemental Appropriation Resolution -- Any appropriation
resolution approved by the Board of Supervisors after the adoption of the
budget for a given fiscal year.
SWRRC - Solid Waste Reduction and Recycling Centers
SYE - Staff Year Equivalent
T
TANF - Temporary Assistance to Needy Families
Taxable Value – The assessed value less homestead and other
exemptions, if applicable.
Tax Base -- The aggregate value of taxed items.
The base of the County's real property tax is the market value of all
real estate in the County. The base of the personal property is the
market value of all automobiles, trailers, boats, airplanes, business
equipment, etc., which are taxed as personal property by the
County. The tax base of a sales tax is the total volume of taxable
sales.
Tax Rate -- The level of taxation stated in terms of either a
dollar amount or a percentage of the value of the tax base. The
Board of Supervisors fixes property tax rates for the period beginning
January 1 of the current calendar year when the budget for the coming
fiscal year is approved. The property tax rate is applied to the
value of property assessed as of January 1 each year.
Technology Infrastructure -- The hardware and software
that support information requirements, including computer workstations
and associated software, network and communications equipment, and
mainframe devices.
Third Quarter Review – The current year budget is reevaluated
approximately seven months after the adoption of the budget based on
current projections and spending to date. The primary areas
reviewed and analyzed are (1) current year budget versus prior year
actual expenditure data, (2) year-to-date expenditure status plus
expenditure projections for the remainder of the year, (3) emergency
requirements for additional, previously unapproved items, and (4)
possible savings. Recommended funding adjustments are provided for
Board of Supervisors’ approval.
Total Budget -- The receipts and disbursements of all funds,
e.g., the General Fund and all other funds. Net total expenditures
(total expenditures minus expenditures for internal service funds) is a
more useful measure of the total amount of money the County will spend in
a budget year, as it eliminates double accounting for millions of dollars
appropriated to operating agencies and transferred by them to service
agencies. General Fund total disbursements (direct General Fund
expenditures plus transfers to other funds, such as the School Operating
Fund) are a more accurate measure of the cost of government to the local
taxpayers.
Transfer -- A movement of funding from one fund to
another. The largest such transaction is the annual transfer of
funds from the General Fund to the School Operating Fund.
Transport Fees – The cost to provide ambulance transportation
to patients from home to hospital.
Trust Funds -- A categorization of accounts defined by the
State Auditor of Public Accounts consisting of funds established to
account for money and property held by the County government in the
capacity of a trustee or custodian for individuals or other specified
purposes. Examples are the various retirement funds, which contain
contributions from the County government and individual employees.
U
Unappropriated – Not obligated for specific
purposes.
Undesignated – Without a specific purpose.
Useful Life – The period of time that a fixed asset is able to
be used. This can refer to a budgeted period of time for an
equipment class or the actual amount of time for a particular item.
User Fees – Charges for expenses incurred when services are
provided to an individual or groups and not the community at large.
The key to effective utilization of user fees is being able to identify
specific beneficiaries of services and then determine the full cost of
the service they are consuming or using.
V
Vacancy Factor A budget adjustment to reduce the amount
of personal services funding to account for the fact that an agency
usually has some positions vacant for portions of the year.
VACo - Virginia Association
of Counties
VIEW - Virginia Initiative
for Employment not Welfare program
Vision Elements -- The vision
elements were developed by the County Executive and the Senior Management
team to address the priorities of the Board of Supervisors and emphasize
the County’s commitment to protecting and enriching the quality of life
for the people, neighborhoods, and diverse communities of Fairfax
County. There are seven vision elements including: Maintaining Safe
and Caring Communities, Building Livable Spaces, Connecting People and
Places, Maintaining Healthy Economies, Practicing Environmental
Stewardship, Creating a Culture of Engagement and Exercising Corporate
Stewardship.
VRE - Virginia Railway Express
W
WAHP - Washington Area Housing Partnership
WAHTF - Washington Area Housing Trust Fund
WAN - Wide Area Network
WMATA - Washington Metropolitan Area Transit Authority
Workforce Planning – A systematic process designed to
anticipate and integrate the human resources aspect to an organization’s
strategic plan by identifying, acquiring, developing, and retaining
employees to meet organizational needs.
WPFO - Work Performed For Others
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