FY25 GFOA Budget - Flipbook - Page 173
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GLOSSARY
due to its size in comparison to other funds. In some cases, qualitative factors can also be
used, but this is not how the District’s major funds have been determined. The District
reports the following major governmental funds: General Fund, Ambulance Fund, and
Vehicle Fund.
Modified Accrual Basis—Modified accrual is a combination of cash basis and full accrual
basis. Revenues are recognized when they are both measurable and available.
Expenditures, 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
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