2018-2022 Financial Plan

GLOSSARY OF TERMS

Accrual – Under accrual basis accounting, expenses are matched with the related revenues and are reported when the expense occurs, not when the cash is paid. Amortization – The reduction of the value of an asset by prorating its cost over its estimated useful life. Appropriation – An amount of money that a government or organization reserves for a particular purpose. Assets – Resources owned or held by Maple Ridge, which have monetary value. Balanced Budget – For each year of the plan, the total of proposed expenditures and transfers to other funds must not exceed proposed funding sources plus transfers from other funds. Base Budget – Cost of continuing the existing levels of service in the current budget year. BC Assessment – The independent organization that is responsible for establishing the assessed property values within British Columbia. Budget – A Financial Plan embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Business Improvement Area (BIA) – A separate specific contained area where funds are spent to improve commercial business potential. Capital Assets – Assets of long-term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture and other equipment. These assets have a significant value and a useful life of greater than one year. Capital assets are also called fixed assets. Capital Budget – The appropriation of internal and external contributions for improvements and additions to facilities, infrastructure and parks. Capital Expenditures – Expenditures to acquire Capital Assets or extend or renew the life of an existing Capital Asset. Capital Improvements – Expenditures related to the acquisition, expansion, or rehabilitation of an element of the physical plant; sometimes referred to as infrastructure. Capital Project – Major construction, acquisition, or renovation activities which add value to the physical assets or significantly increase their useful life. Also called capital improvements. Capital Reserve – An account used to segregate a portion of the equity to be used for future capital program expenditures. Capital Works Program (CWP) – The long term corporate guide toward the provision of

infrastructure, public facilities, equipment and business systems to provide services. Carry Forward – Capital projects from the previous year that were not completed by year-end, where the budget funds must be carried forward to the next budget year so that the works can continue to be carried out. Contingency – A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Corporate Management Team – Senior staff responsible for decisions on the day-to-day and long- term business affairs. Deficit – The excess of an entity’s liabilities over its assets or the excess of expenditures over revenues during a single accounting period. Department – The basic organizational unit, which is functionally unique in its delivery of services. Depreciation – Is an accounting method of allocating the cost of a tangible asset over its useful life. Development Cost Charges (DCC) – Fees and charges contributed by developers to support development and growth in Maple Ridge. Division – The top level organizational unit to which all departments report. Expenditure – Payment for property or services for the purpose of acquiring an asset, service or settling a loss. Charges incurred (whether paid immediately or unpaid) for operations, maintenance, interest or other charges. Financial Plan – Provides the statutory approval to expend funds once approved by Council. Approval for the five-year Financial Plan is provided annually for operating purposes and for life of capital projects beginning in the first year of the Plan period. Fixed Assets – Assets of long-term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture and other equipment. These assets have a significant value and a useful life of several years. Fixed assets are also called capital assets. Freedom of Information (FOl) – Freedom of Information Act gives individuals rights to access information held by local government and protects their privacy by placing restrictions on local government when collecting or disclosing personal information. Full-time Equivalent Position (FTE) – Employee positions, which are authorized in the adopted budget, to be filled during the year. A part-time position converted to the decimal equivalent of a full- time position. For example, a part-time employee

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