Explain the major distinction(s) between the Federal and State budgets in the U.S. 2) What are the most common budget approaches used by states? Explain. 3) What are the most important queries in budget preparation? 4) How are decision units used to prepare budgets? 5) Explain the distinctions between the elements within the following pairs of concepts: Revenues and estimated revenues; expenditures and appropriations; fund balance and budgetary fund balance. 6) Explain the usefulness of fund mapping. 7) Distinguish generally between operating and capital budgets. 8) Identify common obstacles to approval in proposing changes to an approved budget. READING 1 Buenos Aires, Argentina Energy efficiency of public buildings in Buenos Aires: The case of an office building The city context As Argentina’s most populated city and its capital, Buenos Aires is one of the nation’s largest energy consumers. The city′s highest consumption rate is found within its residential sector followed by services, commerce, and industry. Government is the lowest energy consumption sector. Buenos Aires is not a large producer of energy and consumes more than it produces. Fossil fuels and energy from power stations are imported into the city. The energy market is regulated by the national government, most of which is carried out by the National Energy Secretariat. Generation and distribution facilities are operating at their capacity due to a lack of investments. For this reason, the national government usually imports energy in order to satisfy growing demand. Buenos Aires: Achieving reductions of energy consumption in public buildings In 2008, the Environmental Protection Agency (APRA) of Buenos Aires created the Program of Energy Efficiency in Public Buildings (Programa de Eficiencia Energética en Edificios Públicos, or PEEEP) as part of their policy focusing on greenhouse gas emissions reduction. PEEEP’s objective is to optimize energy consumption in public buildings with the goal of setting an example for the whole of society. If successful, carbon dioxide emissions in the city will be reduced. Through PEEEP’s implementation, energy diagnoses are carried out in public buildings of different types. From these evaluations, recommendations on how to operate the buildings more efficiently are developed. PEEEP is implemented by APRA in cooperation with the National Institute of Industrial Technology (INTI) and the Engineering Faculty of the Buenos Aires University, who provide technical support. To obtain an energy diagnosis, a series of activities are carried out, including: Surveys of buildings′ structures; surveys of operating electrical equipment and their consumption levels; installation of sensors to record temperature and humidity; measurement of electrical energy consumption by equipment placed on the principal and sectional electrical boards; survey of the number of personnel in each office and on each floor during every working hour of the day; survey of thermal comfort; measurement of lighting above working stations; and analysis of buildings′ water consumption. Once the results of the diagnosis are obtained, recommendations are developed for each type of building to be incorporated into an Energy Management System (SGE). The SGE centralizes information on the improvement measures by producing a document that provides information on which measures should be implemented and in what manner. It also provides information for the follow-up of each implemented measure by verifying its effectiveness in energy reduction. For the SGE application, an energy manager is appointed by the person responsible for the building. For example, in a hospital, the energy manager would be appointed by the hospital’s director. This person ensures the system’s functionality and is accountable for implementing the recommendations and their monitoring. The manager should be the person who is responsible for the building’s maintenance and, in most cases, should respond directly to the authority in charge of the building. This person should have a technical background with knowledge of electrical systems and the building′s operations, for example, the number of staff, their working hours and energy habits, structural problems, and the building’s history with maintenance and replacements. Above all, the person should be familiar to staff and capable of giving instructions. The manager only works on the implementation and monitoring phases. For example, he/she will document data on the monitoring of equipment. Results The diagnosis of the APRA building took place between September 2008 and April 2009. The results highlight the importance of local data on energy use. The energy consumption of the most important components were: Lighting: 40 per cent of the building’s total electricity consumption. Potential saving in this sector is 27 per cent. Computers: 18 per cent of electricity consumed. It was discovered that 35 per cent of computers turned on were not in use. Saving potential in this segment is 54 per cent. Cooling & Heating: 15 per cent of electrical energy consumed. This sector has the potential of achieving a 37 per cent decrease through the application of recommendations. APRA implemented the following recommendations: • All of the 77 TRC monitors were replaced by LCDs. TRCs consume 128 watts, whereas LCDs consume 100 watts. • The substitution of transformers resulted in an energy saving of 16 per cent; lighting improved by 10 per cent. • During non-work hours electricity is disconnected. A procedure was established, where the last person to leave each floor became responsible for switching the central switch box off. Previously, lights, computers and other equipment were often left on throughout the night. • An energy saving system was installed in the computer server that is able to detect when individual computers have not been in use for a certain period of time, in which case they are put into sleep mode or shut down. • Although the water pumps′ consumption is minimal (1 per cent of total), a 90 per cent energy savings was achieved by repairing a water pipe in one of the building’s toilets. This issue was detected and repaired based on the energy consumption analysis. The analysis indicated a problem since the same amount of water was being pumped both during and outside of office hours. Lessons learned Despite the energy savings stated above, the financial savings were not significant due to the low cost of energy in Buenos Aires. Since the financial savings are small and implementation of the recommendations present extensive repayment periods for the needed investments, decision makers in the public sector do not have incentives to replicate PEEEP in other buildings. For this reason, Law 3246/09 is of great significance (see background for more information). The implementation of energy diagnoses in existing buildings is not a simple task; it requires experts and the availability of appropriate technology. Technical capacities are, in general, limited. It is therefore necessary to promote the development of human capital. While models exist that can rapidly estimate energy consumption in different building sectors, they are not comprehensive enough and do not necessarily reflect the level of consumption in individual buildings. Analysis of samples from different types of buildings can establish common standards and recommendations that can be adopted by similiar buildings. Solutions are not universal, so it is important to give attention to those that will most likely attain wanted results in a majority of cases. The energy manager is a key figure in implementation and monitoring, and the profile of these managers may vary according to the type of building. Low or high energy costs may represent barriers or incentives when energy reduction measures are being pursued. In the case of the agency, the implementation of such measures was based on the leadership’s decision to send a signal that energy consumption reduction was a priority, without considering economic aspects. Thus, energy efficiency measures are not always implemented for their cost-effectiveness. In some cases they may be implemented because leadership has decided to consider other indirect costs. The public sector is the agent of change and must lead by example by recognizing existing barriers and difficulties, and plan policies and develop instruments to promote progress. Replication The program was originally implemented at the Environmental Protection Agency’s head-office to serve as an example for other public buildings. 15 buildings are planned to be evaluated under PEEEP. The four buildings that have already been diagnosed were monitored for six months in the summer and winter. The 5th building is currrently being evaluated. PEEEP’s goal is to obtain energy diagnosis for 5 different types of public buildings: Administrative offices, hospitals, schools, cultural centers, citizen service centers. From the information collected it is possible to determine energy consumption characteristics for other buildings within each type, as well as implement the energy efficiency recommendations that presented good results in the diagnosed buildings. The plan is that by 2011, three of each building type will have been diagnosed. This will allow for a better understanding of common standards that can be applied to each building in order to achieve better energy efficiency. The low energy prices increase wasteful energy use. The public sector can show examplary behavior that will encourage the wider adoption of energy efficiency measures that can be replicated at the national level. This program is the first of its kind from the public sector in Argentina. Given the country′s dire energy situation — its wasteful use of energy due to low energy rates — and the obligation of the public sector to set a positive example for energy efficiency measures, replicating this project on a national level is crucial. Budget and Finances APRA is expected to invest € 150,000 in professional contracts to implement the energy saving diagnosis and € 100,000 for equipment for 15 buildings. The cost of human resources needed for each energy diagnosis is approximately € 10,000. The equipment purchased will be installed in each building in order to provide data in a shorter period of time for a larger number of buildings. The full equipment includes sensors that measure temperature and humidity both inside and outside the building, energy analyzers that measure energy consumption, and equipment specifically designed to record the use of lights and other equipment. This equipment will be connected to a system that enables online consultation on a continuous basis. READING 2 http://www.cityofchesapeake.net/government/City-Departments/Departments/Budget-Department/budget-glossary.htm READING 3 Learning by the Case Method Adapted from a guide developed by John Hammond at the Harvard Business School The case method is not only the most relevant and practical way to learn financial literacy skills, it’s also meant to be exciting and fun. But, it can also be very confusing if you don’t know much about it. This brief note is designed to remove the confusion by explaining how the case method works and then to suggest how you can get the most out of it. Simply stated, the case method calls for discussion of real-life financial dilemmas that real people face. Case writers, as good reporters, have written up these dilemmas to present you with the information available to the people involved. As you review their cases you will put yourself in the shoes of the people facing the dilemma, analyze the situation, decide what you would do, and come to class prepared to present and support your ideas to your classmates. How Cases Help You Learn Cases will help you sharpen your financial literacy skills, since you must use knowledge of best practices in managing finances to support your recommendations. In class discussion you and your classmates will challenge each other to defend your analyses and solutions, You will hone both your problem- solving and your ability to think and reason rigorously. Because a collection of case studies can cut across a range of financial dilemmas, they provide you with an exposure to problems beyond those you are likely to have encountered yourself. (And this will be particularly true when used with high school students) Nevertheless, by placing the problem in a real-life context, and zeroing in on it, the case allows you to build and use new areas of knowledge. You should see that, as different as these problems are, finding solutions to them builds a set of skills and a body of content knowledge that cuts across the dilemmas and broadens your expertise in financial management. Leaning about financial management by working with cases is meant to build real- life problem solving capacity. In class discussions, participants bring to bear their expertise, experience, observations, analyses, and rules of thumb. What each class member brings to identifying the central problems in a case, analyzing them, and proposing solutions is as important as the content of the case itself. Learning by the Case Method Perhaps the most important benefit of using cases is that they help participants learn how to determine what the real problem1 is and to ask the right questions. An able business leader once commented: “Ninety per cent of the task of a top manager is to ask useful questions. Answers are relatively easy to find, but asking good questions is the most critical skill.” This is as true in solving the financial dilemmas faced by private citizens as it is in solving the dilemmas faced by corporations. The task that follows a case might be presented in a way that focuses on certain aspects to the exclusion of others. This is not meant to relieve you of the responsibility to step back and ask yourself: “What really are the problems this person or family has to resolve?” In real-life situations, the people directly involved may lose the forest for the trees. In short, the case method is really a focused form of learning by doing. How to Prepare a Case The use of the case method calls first for you, working individually, to carefully read and to think about each case. Ask yourself: ″What, broadly, is the case about, and what types of information am I being given to analyze?″ (Try hard to put yourself in the position of the people involved and make the problem your problem.) Make notes on what you find to be the most pertinent facts in the case. Ask yourself: What more do I need to know or understand in order to solve the case? 1. Review the list of terms following each case. They point to financial management concepts that may be useful in developing the best solution to this case. Because there are multiple approaches to most cases, you may find only a few terms helpful and, because you are approaching this case with fresh eyes, you may need to use concepts not listed. Usethelinkedresourcesattheendofeachcase.Somewillbe relevant and helpful to the approach you take with the case. Make note of what you can use. Make a set of preliminary recommendations and bring those to the workshop. Until now, your best results will come if you have worked by yourself. What Happens in Class In class, you and your group will discuss whatever aspects of the case you wish. Pose questions of each other. Play the devils advocate. Prod and draw out your classmate ‘reasoning. A healthy debate and discussion can lead to the best problem solving. Ask one member of the group to summarize the discussion. A typical request at the end of a discussion is “What‘s the answer?” The case method of learning does not provide the answer. Rather, various participants in the discussion will have developed and supported several viable “answers”. Personal finance is not an exact science. There is no single, demonstrably right answer to every financial dilemma, particularly because they are result of forces and factors beyond the control of the players. In real life, you cannot peek at the back of the books to see if you have found the right solution to a dilemma or a crisis. In every case discussion, there is always a reasonable possibility that the best answer has not yet been found—by the experts.. You can′t acquire judgment and skill simply by reading books or listening to lectures any more than you can become a great swimmer just by reading a book on swimming. While the knowledge obtained from books and lectures can be valuable, the real gains come from practice at analyzing real problems. READING 4 Budget 101 – Introduction to State Budgeting Nevada Department of Administration Division of Budget and Planning 209 East Musser Street, Room 200 (775) 684-0222 budget.state.nv.us Sixth Edition, First Revision August 2009 READING 5 Glossary of Budget and Finance Terms 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 ACCOUNTING SYSTEM: The total set of records and procedures which are used to record, classify, and report information on the financial status and operations of an entity or fund. ACTIVITY: A specific unit of work or service performed. ADA: Americans with Disabilities Act, which is the federal legislation, requiring all public buildings to be handicap accessible. ADJUSTED BUDGET: The Adopted Budget as amended by the City Council and adjusted to show comparability as a result of shifts in programmatical or functional responsibilities. AMENDED BUDGET: The Adopted Budget as formally adjusted by the City Council. APPROPRIATION: An authorization made by the City Council which permits officials to incur encumbrances or obligations against and to make expenditures of City controlled governmental dollar resources. Appropriations are usually made for fixed dollar amounts and are typically granted for a one (1) fiscal year period. APPROPRIATION ORDINANCE: The official enactment by the City Council establishing the legal authority for the City officials to encumber or obligate and expend dollar resources. ASSESSED VALUATION: The estimated dollar value placed upon real and personal property by the chief appraiser of the appraisal district as the basis for levying property taxes. ASSETS: Property owned by the City which has book or appraised monetary value. AUDIT: A systematic examination of resource utilization concluding in a written report. It is a test of management’s internal accounting controls. BALANCE SHEET: A statement purporting to present the financial position of an entity or fund by disclosing the value of its assets, liabilities, and equities as of a specified date. BASE BUDGET: On-going expense for personnel, contractual services, materials and supplies, and the replacement of supplies and equipment required to maintain service levels previously authorized by the City Council. BOCA: United States (Building Officials and Code Administrators) Code. BOND (DEBT INSTRUMENT): A written promise to pay (debt) a specified sum of money (called principal or face value) at a specified future date (called the maturity date) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long-term debt to pay for specific capital expenditures. BUDGET (OPERATING): A plan of financial operation embodying an estimate of proposed revenues and expenditures for a given period (typically a fiscal year). The term “Approved Budget” is often used to denote the City Council officially Approved Budget under which the City and its departments operate. BUDGET CALENDAR: The schedule of key dates or milestones which the City follows in the preparation, processing and adoption of the budget. BUDGET DOCUMENT: The official written statement prepared by the Budget office and supporting staff which presents the Proposed Budget to the City Council. BUDGET MESSAGE: A general discussion of the Proposed Budget presented in writing as a part of the budget document. The budget message explains principal budget issues against the background of financial experience in recent years and presents recommendations made by the City Manager and the Budget Director. CAFR: Comprehensive Annual Financial Report which is an audited and printed copy of the City’s financial statement at the end of a given fiscal year. CAPITAL ASSETS: Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. CAPITAL BUDGET: A plan of proposed capital expenditures for buildings, parks, utilities, etc., and their financing sources. The Capital Budget should be enacted as part of the City’s Consolidated Budget which includes both the Operating Budget and the Capital Budget. The Capital Budget should be based on the first fiscal year of the five (5) (plus) year Capital Improvement Budget (CIB). CAPITAL IMPROVEMENT BUDGET: A plan for capital expenditures to be incurred each year over a period of five (5) future years setting forth each capital project, identifying the expected beginning and ending date for each capital project, the amount to be expended in each year, and the method of financing those expenditures. Also, operating cost impacts are identified for each project for inclusion in appropriate operating budgets. CAPITAL OUTLAYS: Expenditures for the acquisition of capital assets. Includes the cost of land, buildings, permanent improvements, machinery, large tools, rolling and stationary equipment. CAPITAL PROJECTS: Projects which purchase or construct capital assets. Typically a capital project encompasses a purchase of land and/or the construction of a building or facility. CEIC: Chesapeake Environmental Improvement Council. CERTIFICATE OF DEPOSIT: A negotiable or non-negotiable receipt for monies deposited in a bank or financial institution for a specified period for a specified rate of interest. CHARTER: The legal document in which the Commonwealth of Virginia Assembly grants the City’s authority. CIB: Capital Improvement Budget, which is the City’s plan for capital expenditures. CITY GARAGE: An Internal Service Fund (Inter-Department Transfer) financed operation where user pays/absorbs the costs of service. COMMERCIAL PAPER: A very short-term unsecured promissory note, supported by a bank line or letter of credit, which has a maturity from one (1) to 270 days. Some cities issue commercial paper for their Sewer Revenue Fund to provide some flexibility in financing the Capital Improvement Program for the Sewer System. COMMODITIES: Items of expenditure (in the Operating Budget) which, after use, are consumed or show a material change in their physical condition, and which are generally of limited value and are characterized by rapid depreciation. Office supplies and motor fuel are examples of commodities. CONTINGENCY: A budgetary reserve set aside for emergencies or unforeseen expenditures. CONTRACTUAL SERVICES: Are items of expenditure for services the City receives from an InterDepartment Transfer or from an outside company. Utilities, rent, and postage are examples of contractual services. COPS: Federal grants awarded to support community policing programs and other law enforcement initiatives. DCJS: Department of Criminal Justice Services. DEBT SERVICE: Payment of fees, interest and repayment of principal to holders of the City’s debt instruments. DEFICIT: The excess of an entity’s or fund’s liabilities over its assets (See Fund Balance). The excess of expenditures or expenses over revenues during a single accounting period. DEPRECIATION: Expiration in the service life of capital asset attributable to wear and tear, deterioration, action of the physical elements, inadequacy obsolescence. That portion of the cost of a capital asset which is charged as an expense during a particular period. DEQ: Department of Environmental Quality. DMHRMRSAS: The Commonwealth of Virginia Department of Mental Health, Intellectual Disabilities and Substance Abuse Services which is the parent organization to the City’s Community Services Department. DMV: Division of Motor Vehicles, a federal agency responsible for administering the registration of vehicles. EMS: Emergency Medical Service which is part of the Fire Department and provides emergency rescue services. ENCUMBRANCES: Obligations in form of purchase orders, contracts or salary commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when paid or when an actual liability is set-up/recorded. ENTERPRISE FUND: Public Utilities are examples of enterprise funds. Separate financial accounting used for government operations that are financed and operated in a manner similar to business enterprises, and for which preparation of an income statement is desirable. EPA: The Environmental Protection Agency, which is a federal agency that enforces environmental regulations. EVMS: Eastern Virginia Medical School which is a medical school located in Hampton Roads. EXPENDITURES: Where accounts are kept on the accrual or modified accrual basis of accounting, the cost of goods received or services rendered whether cash payments have been made or not. Where accounts are kept on a cash basis, expenditures are recognized only when the cash payments for the above purposes are made. FICA: Federal Insurance Contributions Act, a payroll expenditure representing social security tax. FISCAL YEAR: The twelve (12) month period beginning July 1st and ending the following June 30th. FULL FAITH AND CREDIT: A pledge of the City’s taxing power of a government to repay debt obligations (typically used in reference to General Obligation Bonds or tax-supported debt). FUNCTION: An accounting entity which is part of a fund. It is a compilation of all costs associated with a program or a department within a fund. FUND: An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. FUND BALANCE: The excess of an entity’s or fund’s assets over its liabilities. A negative fund balance is sometimes called a deficit. FY: The abbreviation for Fiscal Year which the twelve (12) period beginning on July 1st and ending on June 30th. GENERAL FUND: The fund supported by taxes, fees, and other revenues that may be used for any lawful purpose. GENERAL OBLIGATION BONDS: When the City pledges its full faith and credit to the repayment of the bonds it issues, then those bonds are general obligation (G.O.) bonds. Sometimes the term is also used to refer to bonds which are to be repaid from taxes and other general revenues. GIS: Geographical Information System which is a City-wide computerized mapping program. GOALS: Statements about a department’s long term objectives. HIPAA: Health Insurance Portability and Accountability Act of 1996. HVAC: Heating, ventilating and air conditioning; the system or systems that condition air in a building. HUD: Housing and Urban Development which is a federal agency that awards the grant funding to the City for housing and urban development projects. INFORMATION TECHNOLOGY: An Internal Service Fund or Inter-Department Transfer financed operation where user pays/absorbs the costs of services. INTERGOVERNMENTAL GRANT: A contribution of assets (usually cash) by one (1) governmental unit or other organization to another. Typically, these contributions are made to local governments from the State and Federal Governments. Grants are usually made for specified purposes. INTERNAL SERVICE FUND: Funds used to account for the financing of goods or services provided by one (1) department or agency to other departments or agencies of the City, or to other governments, on a cost-reimbursement basis. Transfer of charges are made by Inter-Departmental Transfer (IDT). INVESTMENT: Securities and real estate purchased and held for the production of income in the form of interest, dividends, rentals or base payments. LIABILITY: Debt or other legal obligations arising out of transactions in the past which must be liquidated, renewed or refunded at some future date. Note: The term does not include encumbrances. MATURITIES: The dates on which the principal or stated values of investments or debt obligations mature and may be reclaimed. MH: Mental Health Services which is a division of the Community Services Department. MODIFIED ACCURAL ACCOUNTING: A basis of accounting in which revenues are recorded when collected with the current period or soon enough thereafter to be used to pay liabilities of the current period and expenditures are recognized when the related liability is incurred. MR: Intellectual Disabilities Services which is a division of the Community Services Department. N/A: Information is “not available.” OBJECTIVES: Statements about a department’s annual level of activity. Objectives are measurable, time bound activities, which illustrate how a department intends to reach its goals. OBJECT OF EXPENDITURE: Expenditure classifications based upon the types or categories of goods and services purchased. (For greater detail, see Chart of Accounts) Typical objects of expenditure include: Personal services (salaries and wages paid to employees for full and part-time work, including overtime, shift differential and similar compensation); Purchased services (private vendors, public authorities or other governmental entities); Materials and supplies; Capital outlay. OPERATING FUNDS: Resources derived from recurring revenue sources used to finance ongoing operating expenditures and pay-as-you-go capital projects. PERFORMANCE MEASURES: Specific quantitative productivity measures of work performed within an activity or program (e.g., total miles of streets cleaned). Also, a specific quantitative measure of results obtained through a program or activity (e.g., reduced incidence of vandalism due to new street lighting program). PERSONAL SERVICES: Items of expenditures in the Operating Budget for salaries and wages paid for services performed by City employees, as well as the incidental fringe benefit costs associated with City employment. PM: Preventative Maintenance, regular inspection to prevent problems before they happen. RATING: The credit worthiness of a City as evaluated by independent agencies, with AAA or Aaa being the highest. RESERVE: An account used to indicate that a portion of fund equity or balance is legally designated or restricted for a specific purpose, e.g., cash flow reserve. RESOURCES: Total dollars, people, materials and facilities available for use including estimated revenues, fund transfers, and beginning fund balances. REVENUE: The term designates an increase to the dollar value of a fund’s assets which: – Does not increase a liability (e.g., proceeds from a loan); – Does not represent a repayment of an expenditure already made; – Does not represent a cancellation of certain liabilities; – Does not represent an increase in contributed capital. REVENUE BONDS: When a government issues bonds, which do not pledge the full faith and credit of the jurisdiction, it issues limited liability revenue bonds. Typically, pledges are made to dedicate one (1) specific revenue source to repay these bonds. Revenue bonds are not included in the debt limit set by City Charter and under state law do not require voter approval. REVENUE ESTIMATE: A formal estimate of how much revenue will be earned from a specific revenue sources for some future period; typically, a future fiscal year. SA: Substance Abuse which is a division of the Community Services Department. SEWER UTILITY: Funding received from sewer usage fees for the Public Utilities Department′s operations. SOL: Standards of Learning which are the measures used by the Commonwealth of Virginia against which all students’ achievement in school will be measured. SOQ: Standards of Quality. A term describing the minimum limits the state prescribes for funding reimbursements of school personnel including teachers, principals, and other non-instruction staff. SOURCE OF REVENUE: Revenues are classified according to their source or point of origin, e.g., real estate taxes. STORMWATER MANAGEMENT OPERATIONS: A division of Public Works responsible for developing and implementing cost effective compliance with state and federal regulations governing stormwater quality. TANF: Temporary Assistance to Needed Families, which is federal assistance, which replaced the Aid for Families with Dependent Children (AFDC). It requires all participants to find work after receiving assistance for 24 months and to participate in community services within two months. TAX LEVY: The total amount to be raised by general property taxes for operations and debt service purposes specified in the Annual Tax Ordinance. TAX RATE: The amount of tax levied for each $100 of assessed valuations of property. TAX RATE LIMIT: The maximum legal property tax rate at which a municipality may levy a tax. The limit may apply to taxes raised for a particular purpose or for general purposes. TV: (Not presented as an acronym) – to inspect water lines/pipes with a video camera. UNIT COST: The cost required to purchase/produce a specific product or unit of service (e.g., the cost to purify one thousand gallons of water). USER CHARGES (ALSO KNOWN AS USER FEES): The payment of a fee for direct receipt of a public service by the party benefiting from the service. VDOT: Virginia Department of Transportation which is the state agency that maintains state roads and interstates. VIEW: Virginia Initiative for Employment not Welfare which is the state welfare reform program that places work requirement and time limits on receiving public assistance. VPDES: Virginia Pollutant Discharge Elimination System, referred to in relation to Stormwater Management Operations. VRS: Virginia Retirement System which is the state retirement system for public employees that provides its members with benefits at retirement or upon disability or death. WATER UTILITY: Funding received from water usage fees for the Public Utilities Department operations. YIELD: The rate earned on an investment based on the price paid for the investment.
