BFPD FY26 GFOA Budget - Flipbook - Page 178
| GLOSSARY
however, are recorded on a full accrual basis because they are always measurable when they are
incurred.
Non-major Fund—A non-major fund is not required to be reported independently in the same
fashion as with major funds. Typically, these funds represent smaller portions of the District’s
budget, and are restricted for specific purposes. The District reports the following non-major
funds: Non-Major Capital Projects Funds (Capital Projects, Building Fund, and Buy Back Fund)
and Non-Major Special Revenue Funds (Foreign Fire Insurance Fund).
Objectives—An objective denotes a specific, measurable, and achievable action to be
accomplished in a set amount of time.
Operating Budget—An operating budget consists of all revenues and expenses over a period of
time which a government uses to plan its operations.
Operating Funds—Current balances and other funds that are to be disbursed for operation of
the state government or any of its boards, commissions, institutions, departments, or divisions.
Ordinance—Formal legislation issued and enacted by the District’s governing board.
Pension—A fund into which a sum of money is added during an employee's employment years
and from which payments are drawn to support the person's retirement from work in the form of
periodic payments.
Property Tax—An ad valorem tax on the value of a property. The tax is levied by the governing
authority of the jurisdiction in which the property is located.
Property Tax Extension Law Limit (PTELL)—Because the District is a non-home rule entity
(see home rule definition), it is constrained by PTELL. Based on 35 ILCS 200/18-185, this law
limits the amount the tax levy can be increased each year to 5% or the percentage increase in the
Consumer Price Index during the 2-month calendar year preceding the levy year, whichever is
less. Per PTELL, a higher property tax can be levied in special circumstances such as
construction, mergers, consolidations or if voters approve a higher levy by referendum.
Proprietary Funds—Funds reported in the fund financial statements. These funds generally
report services for which the District charges customers a fee. There are two types of proprietary
funds. These are enterprise funds and internal service funds. The District does not have any
proprietary funds at this time.
Revenue—Funds the District accounts as income.
Strategic Plan—The process of defining strategy or direction, and making decisions on
allocating resources to attain strategic goals.
Tax Levy—The authority of a government to impose taxes.
Tax Increment Financing (TIF)—Tax Increment Financing is a method of funding public
projects. This is done by forming a TIF District in a geographical area where, for example, there
is extensive planned construction. Once a base property value is established, all incremental
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