Frequent Terms in Reports
A
ACTUARIAL SERVICES: Typically involve estimating certain factors affecting pension costs, including rates of mortality, disability, employee turnover, rates of investment income, and salary increases to determine the overall soundness of the City's pension system.
ACTUARY: A person professionally trained in the technical and mathematical aspects of insurance, pensions and related fields. The actuary estimates how much money must be contributed to a defined benefit pension plan each year in order to support the benefits that will become payable in the future.
ALLOCATED RESERVE: Represents funds carried forward from previous fiscal years for current year obligations, including projects that could not be completed prior to the end of the previous fiscal years.
AMERICANS WITH DISABILITIES ACT (ADA): The Americans with Disabilities Act, Public Law 336 of the 101st Congress, was enacted on July 26, 1990. The ADA prohibits discrimination and ensures equal opportunity for persons with disabilities in employment, State and local government services, public accommodations, commercial facilities, and transportation. It also mandates the establishment of TDD/telephone relay services.
ANNUAL BUDGET DEFICIT: An annual budget deficit occurs when actual or forecasted expenditures exceed actual or forecasted revenues for a particular fiscal year. Annual budget deficits are typically unexpected and often the result of one-time or short-term occurrences.
ANNUAL REQUIRED CONTRIBUTION (ARC): The annual contribution amount into San Diego City Employees' Retirement System (SDCERS), as defined by the SDCERS actuary. This includes the normal cost to the City of benefits accrued during that year, as well as the contribution for any unfunded actuarial liability
APPROPRIATED RESERVE: Funds set aside during the budget process as a contingency for unanticipated, non-emergency needs that are identified during the year. These reserves are utilized to fund unexpected expenditures, or in the case of Enterprise Funds, to support operations due to unanticipated revenue shortfalls. Recommendations to use these funds would be brought forward by the Mayor or the City Council and would require approval by a majority of the City Council.
APPROPRIATION: A legal authorization to incur obligations and to make expenditures for specific purposes.
APPROPRIATION ORDINANCE: The official enactment by the City Council to establish legal authority for City officials to obligate and expend resources.
ASSESSED VALUATION:An official government value placed upon real estate or other property as a basis for levying taxes.
ASSOCIATION OF LOCAL GOVERNMENT AUDITORS (ALGA): ALGA is a professional organization committed to supporting and improving local government auditing.
B
BALANCE (FUND BALANCE): Excess of a fund's balance and revenue over or under expense and reserve.
BALANCED BUDGET: The amount of budgeted expenditures is equal to or less than the amount of budgeted revenues plus other available sources.
BEGINNING BALANCE: The beginning balance is comprised of residual funds brought forward from the previous fiscal year (ending balance).
BOND: A funding tool representing a written promise to pay a specific sum (face value or principal amount) in the future (maturity date), plus interest. In California municipal government, bonds are only used to finance capital improvements.
BOND, GENERAL OBLIGATION: A limited tax bond which is secured by the City's property tax.
BOND PROCEEDS: Funds derived from the sale of bonds for the purpose of constructing major capital facilities.
BOND RATING: A methodology used to measure the fiscal health of the City. Generally, analyst firms such as Standard and Poor's, Moody's Investor Service, and Fitch Ratings provide bond ratings to municipalities. Bonds rated AAA/Aaa are judged to be the best quality and carry the smallest degree of risk, and together with AA/Aa bonds comprise high grade bonds. Ratings including "+" or "1" designate the strongest bonds in the rating category. Generally, highly rated bonds result in lower interest rates.
BUDGET: Proposed plan of expenditure and revenue over a given period of time.
BUDGET CALENDAR: The schedule of major events in the development of the annual budget, including the proposed budget, budget hearings, budget deliberations, and adoption of the annual Appropriation Ordinance.
BUDGET DELIBERATIONS: After the completion of public hearings, the City Council reviews and approves the Mayor's Proposed Annual Budget during deliberations.
BUDGET DOCUMENT: The instrument utilized to present the City's comprehensive financial plan to the City Council and the public.
BUSINESS IMPROVEMENT DISTRICT (BID) FUNDS: A special assessment levied upon business owners within a district with specifically defined boundaries established by City Ordinance. These assessments finance improvements within the district.
BUSINESS PROCESS REENGINEERING (BPR): Business process reengineering (BPR) is the redesign of work processes (activities, services, or functions) for substantial improvement. In the City of San Diego, these work processes can be accomplished within or between divisions and departments. The National Academy of Public Administration defines BPR as: "Government business process reengineering is a radical improvement approach that critically examines, rethinks, and redesigns mission product and service processes within a political environment. It achieves dramatic mission performance gains from multiple customer and stakeholder perspectives. It is a key part of a process management approach for optimal performance that continually evaluates, adjusts or removes processes."
C
CAPITAL IMPROVEMENT PROJECT: A capital improvement is generally a large construction project such as the development of park land, the construction of an overpass, the installation of a traffic signal, the acquisition of land, or the construction or remodeling of a City building. Funds for these projects are derived largely from the issuance of bonds, water and sewer fees, and a one-half cent local sales tax for transportation improvements (TransNet), grants, and developer impact fees.
CAPITAL IMPROVEMENTS PROGRAM (CIP) BUDGET: Authorized expenditures for tangible and long-term physical improvements or additions of a fixed or permanent nature (i.e., sewer main replacement or a new fire station).
CASH BASIS OF ACCOUNTING: The basis of accounting under which revenues are recorded when received in cash and expenditures (or expenses) are recorded when cash is disbursed. Since payments for goods and services can be delayed to the next fiscal year, cash on hand can result in an inaccurate picture of the financial condition of a fund. To be in conformance with Generally Accepted Accounting Principles (GAAP), local governments must use the accrual basis rather than the cash basis of accounting.
CENTRE CITY DEVELOPMENT CORPORATION (CCDC): CCDC is the public, non-profit corporation created by the City of San Diego to staff and implement Downtown redevelopment projects and programs. Formed in 1975, the corporation serves on behalf of the San Diego Redevelopment Agency as the catalyst for public-private partnerships to facilitate redevelopment projects adopted pursuant to redevelopment law. Through an operating agreement, CCDC is the Agency's representative in the development of retail, residential, office, hotel, cultural and educational projects and public improvement projects. Each of CCDC's seven-member board of directors is appointed by the Mayor and City Council to three year terms.
CITY MANAGEMENT PROGRAM: The City Management Program (CMP) is part of the business and management reforms currently underway throughout the City. It is a program designed to integrate strategic planning and performance monitoring efforts with the budget decision-making process. It works as a continuum of processes that include planning, management, measurement, and adjustment all of which are designed to be performed on an on-going basis.
CITY RESERVE: City Charter Section 91 requires the City to maintain a "General Reserve Fund" to meet the cash obligations of the City for four (4) months or prior to collection of taxes. Money in the Reserve Fund may only be expended in emergency situations such as natural disasters, catastrophic occurrences, or excessive liabilities or judgments against the City. Any expenditure of Reserve funds requires a two-thirds majority vote of the City Council.
- Emergency Reserve:
The Emergency Reserve refers to money that can only be used for qualifying emergencies, such as in the event of a natural disaster; use of emergency reserve funds must be approved by a two-thirds majority vote of the City Council. The amount of the Emergency Reserves is proposed to reach a minimum of 8% of the General Fund by Fiscal Year 2012, increasing by 0.5% increments from 6.0% at the end of the current fiscal year (Fiscal Year 2008). - Appropriated Reserve
The Appropriated Reserve is maintained with the purpose of paying for unanticipated, non-emergency operational needs that arise during the fiscal year but are not anticipated during the budget process. Funds appropriated to this Reserve will be identified and appropriated to a single account within the General Fund annual budget. There is no minimum or maximum funding amount for this reserve. In Fiscal Year 2008, $7 million was set aside for the Appropriated Reserve.
COMMERCIAL PAPER: A short-term borrowing tool typically used to raise money needed to cover cash-flow deficits. Maturation on Commercial Paper does not exceed nine months (270 days) and averages about 30 days.
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS: Funds established to account for revenues from the federal government and expenditures as prescribed under the CDBG Program.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): A report prepared by the City Auditor and Comptroller's Office that summarizes financial data for the previous fiscal year in a standardized format. The CAFR is organized by fund and contains two basic types of information: a balance sheet that compares assets with liabilities and fund balance; and an operating statement that compares revenues with expenditures.
CONSTANT STAFFING: This is the practice of ensuring minimum staffing requirements by utilizing off-duty personnel (overtime) or unassigned firefighters ("reliefs") to cover short-term absences (i.e. vacations, training).
CONTRACTUAL SERVICE: A written agreement or legal instrument whereby the City of San Diego is committed to expend, or does expend, public funds in consideration for work, labor, services, equipment, or any combination of the foregoing.
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DEBT SERVICE: Payment of interest and principal on an obligation resulting from the issuance of bonds.
DEFERRED MAINTENANCE: A backlog of needed repairs to City facilities or other assets such as streets, roof repairs, heating and cooling system upgrades, painting, floor covering repair, structural repairs, streets, and slurry sealing.
DISCLOSURE PRACTICES WORKING GROUP (DPWG): The Purpose and Intent of the DPWG is to ensure the compliance by the City (including the City Council, city officers, and staff) with federal and state securities laws and to promote the highest standards of accuracy in disclosures provided by the City relating to securities issued by the City or by its related entities (Source: IBA Report 08-06).
DISCRETIONARY FUNDS: Funds for which there are no restrictions on the use of the fees or taxes collected.
E
EDUCATIONAL REVENUE AUGMENTATION FUND (ERAF): Following the deficit crisis in 1992, the State of California enacted legislation that shifted partial financial responsibility for funding education to local governments in order to meet its obligations to fund school districts at specified levels under Proposition 98. These revenue shifts are known as ERAFs.
EMPLOYEE PICK UP: Employee contributions to retirement plan, as a result of contract negotiations with labor organizations, which provides savings to the City. Per the FY 2006 contracts, the employees have agreed to pay more of their own pension contributions, as long as the City sets aside the savings realized to be used to benefit the pension system as agreed.
ENCUMBRANCE: An encumbrance designates or reserves funds for a specific purpose as approved by the appropriate authority. When the goods and services are received, the encumbrance is released and the expenditure is recorded for the actual costs.
ENTERPRISE FUNDS: Funds established to account for specific services funded directly by fees and charges to users such as water and sewer services. These funds are intended to be self-supporting.
ENTERPRISE RESOURCE PLANNING SYSTEM (ERP): An ERP system attempt to integrate several data sources and processes of an organization into a unified system. A typical ERP system will use multiple components of computer software and hardware to achieve the integration. A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules. In San Diego, an ERP system was recommended in the Kroll Report and the effort to develop and implement the system began in late 2006. The goal is to combine previously separate data systems relative to core financial, human resources, payroll and procurement functions. The ERP System is expected to be rolled out in three phases, with the first phase, comprising financial and procurement applications, expected to be implemented by October 2008. The second phase, comprising human resources functions, will go live in January 2009; the final phase, budget preparation, will follow later in 2009.
ENVIRONMENTAL GROWTH FUND: This fund was established in accordance with Section 103.1a of the City Charter to receive 25 percent of all funds derived from the revenues accruing to the City from gas, electricity, and steam franchises.
EQUAL OPPORTUNITY CONTRACTING (EOC): This is a Program in the City of San Diego that enforces public contracting regulations; administers Federal, State, and City equal opportunity laws; conducts broad outreach efforts to increase the diversity of the contracting community; and provides mentorships and technical assistance to small and emerging contractors. Staff provides support to the Citizens Equal Opportunity Commission whose duties are to monitor and/or evaluate the Equal Opportunity Program of the City; assist in recruitment of competent historically under-represented, women and disabled-owned businesses; and to promote the City of San Diego as an Equal Opportunity Employer of individuals and firms desiring to contract with the City.
EQUIPMENT AND VEHICLE FINANCING PROGRAM (EVFP): A lease-purchase program for vehicle and equipment acquisitions. Lease payments are subject to annual appropriations and are not considered to be debt under the City Charter or the State Constitution.
EXPENDITURE CATEGORY: Also known as allotment classes, expenditure categories are groupings of similar types of expenditures. The City uses six major expenditure categories: salaries and wages; fringe benefits; supplies and services; information technology; energy and utilities; and equipment outlay.
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FINAL BUDGET: The Mayor and City Council approved plan for the City's financial operations, which includes an estimate of expenditures and revenues for a given fiscal year.
FINANCIAL MANAGEMENT INFORMATION SYSTEM (FMIS): An automated application that records proposed expenditures and revenues for all City departments and programs. The information is used to prepare the City's annual budget and administer budgets throughout the fiscal year.
FISCAL YEAR (FY): A 12-month term designating the beginning and ending period for recording financial transactions. The City of San Diego has specified July 1 through June 30 as the fiscal year.
FIVE-YEAR FINANCIAL OUTLOOK: The Five-Year Financial Outlook includes revenue and expenditure forecasts which are based on various assumptions such as economic conditions or previous policy decisions. The Financial Outlook serves as a long-range planning tool which identifies priorities, economic trends, risks, and opportunities and guides the City in the development of future budgets.
FRANCHISE FEES: Fees resulting from agreements with private utility companies in exchange for use of the City's rights-of-way.
FRINGE BENEFITS: This expenditure category consists of the costs to provide employee benefits. Typical employee benefits include the flexible benefit program, insurance, and retirement. According to the City Charter, fringe benefit expense is not considered a salary or wage expense.
FULL TIME EQUIVALENT (FTE): The decimal equivalent of a part-time position converted to a full time basis (i.e., one person working half-time would count as 0.50 FTE).
FUND: A fiscal and accounting entity with a self-balancing set of accounts to record revenue and expenditures.
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GANN LIMIT (PROPOSITION 4): Under this article of the California Constitution, the City must compute an annual appropriations limit that places a ceiling on the total amount of tax revenues the City can actually appropriate annually.
GENERAL FUND: The City's main operating fund that pays for basic City services that use most of the City's tax revenue, such as public safety, parks, and library services. The General Fund is also supported by fees from licenses and permits, fines, and investment earnings.
GOVERNMENT ACCOUNTABILITY OFFICE (GAO): The U.S. Government Accountability Office (GAO) is known as "the investigative arm of Congress" and "the congressional watchdog." GAO supports the Congress in meeting its constitutional responsibilities and helps improve the performance and ensure the accountability of the federal government for the benefit of the American people. GAO's work includes oversight of federal programs; insight into ways to make government more efficient, effective, ethical and equitable; and foresight of long-term trends and challenges. Visit website at: http://www.gao.gov.
GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA): The purpose of the Government Finance Officers Association is to enhance and promote the professional management of governments for the public benefit by identifying and developing financial policies and practices and promoting them through education, training and leadership. Visit website at: http://www.gfoa.org.
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INDIRECT POTABLE REUSE (IPR): Indirect potable reuse is the practice of taking recycled water that meets all regulatory requirements for non-potable use, treating it further with several advanced treatment processes to meet potable water standards, and adding it to an untreated potable water supply, usually a water body such as a surface water reservoir or a groundwater aquifer.
INFORMATION TECHNOLOGY (IT): This expenditure category includes labor, data center, network, procurement and maintenance of hardware, software, and telephones.
INTERNAL SERVICE FUND: A fund created to finance and account for a department's or division's work for other departments. The fund's expenses are repaid from fees or fund transfers from other City departments.
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KROLL REPORT: On August 8, 2006, the firms of Kroll and Willkie, Farr & Gallagher issued a report entitled Report of the Audit Committee of the City of San Diego (typically referred to as the "Kroll Report"). The Kroll Report recommended a Remediation Plan designed to achieve the following four principal compliance objectives: enhanced accountability; greater transparency; increased fiscal responsibility; and independent oversight.
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LEVY: To impose taxes, special assessments, or charges for the support of City activities.
LICENSES AND PERMITS: This category includes revenue raised for the purpose of recovering the costs associated with regulating business activity. Many of these fees are regulatory in nature in order to ensure compliance with the law.
LOCAL 127: The local chapter of the American Federation of State, County and Municipal Employees (AFSCME) union, representing City of San Diego's skilled trade employees.
LOCAL 145: The local chapter of the International Association of Fire Fighters (IAFF) union, representing the City of San Diego's fire fighting personnel.
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MAINTENANCE ASSESSMENT DISTRICT (MAD) FUNDS: Property owners within a specified district are assessed for the purpose of financing maintenance of open space areas, street medians, rights of-way, and in some cases, mini-parks, and streetlights.
MANAGED COMPETITION: Managed competition is a formal mechanism whereby City departments compete with private sector vendors to perform City services. The goals of the managed competition program include, but are not necessarily limited to, maximizing the quality of service the City provides to its residents in a cost-effective manner. Under managed competition, a public-sector agency competes with private-sector firms to provide public-sector functions or services under a controlled or managed process. This process clearly defines the steps to be taken by government employees in preparing their own approach to performing an activity. The agency's proposal for providing the service, which includes a bid proposal for cost-estimation purposes, is used in competing directly with private-sector bids.
MANDATED PROGRAM: A requirement by the State or federal government that the City perform a task in a particular way, or perform a task to meet a particular standard, often without compensation from the higher level of government.
MEET AND CONFER: Meet and Confer obligations for the City of San Diego are defined in state law, the City Charter, Council Policy and the Memoranda of Understanding (MOUs) with the City's five labor organizations. Section 3500, et. seq., of the State Government Code, more commonly referred to as the Meyers-Milias-Brown Act, establishes mandatory rights and duties by which all local agencies must abide and with which local rules must conform. Under these rules, the City and the recognized labor organizations have the duty to Meet and Confer in good faith. To Meet and Confer in good faith is defined as the mutual obligation to personally meet and confer promptly on requests by either party, and continue for a reasonable period of time, in order to exchange information, opinions and proposals, and to endeavor to reach agreement on matters with the scope of bargaining, including wages, hours, and working conditions.
MEMORANDUM OF UNDERSTANDING (MOU): A legal document describing a mutual agreement between two or more parties. Often used in reference to the resulting agreement reached by parties during the labor negotiation and bargaining process, though MOUs are commonly used in areas other than labor contracts.
MID-YEAR REVIEW: The Mayor performs a mid-year review of the annual budget by analyzing actual City revenue receipts and expenditures against the budgeted amounts. This analysis typically leads to recommended mid-year budget adjustments to ensure that the City's budget is balanced at year-end.
MOTIVE EQUIPMENT ASSIGNMENT AND USAGE: Costs associated with motor vehicles consists of two charges: assignment and usage. Assignment charges represent an amount to offset the annualized estimated expense for replacing the vehicle at the end of its economic life. Usage charges are fees that offset all operating expenses associated with the equipment class, including maintenance, fuel, tires, and repairs.
MOTOR VEHICLE LICENSE FEES (MVLF): Fees paid to the Department of Motor Vehicles (DMV) at the time of registration. The fees are levied as a percentage of an automobile's purchase price, subject to depreciation.
MUNICIPAL EMPLOYEES ASSOCIATION (MEA): The exclusive representative for all employees in the Administrative and Field Support, Technical, Professional and Supervisory units of the City of San Diego.
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NET TOTAL COMBINED BUDGET: The City's total budget including operating and capital revenues and expenditures, reflecting General Fund, Special Revenue Funds, and Enterprise Funds, less interfund transfer activity for a fiscal year.
NON-DISCRETIONARY: Non-discretionary expenditures are those expenses budgeted in a department that are outside of the department's direct control. Examples of these expenses include utilities, insurance, and rent.
NON-GENERAL FUND: A fund that is not supported by General Fund dollars. Examples of Non-General Funds include Internal Service, Special Revenue, Trust, Agency, and Enterprise Funds.
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ONE-TIME EXPENDITURES AND/OR REVENUES: Expenditures and/or revenues for one-time projects or services. After the project or service is completed, expenditures and/or revenues are terminated and are not considered part of the budget for the following year.
OPERATING BUDGET: Authorized expenditures for ongoing municipal services (i.e., police and fire protection, street maintenance, parks, and libraries).
ORDINANCE: A law adopted by the City Council. Ordinances usually amend, repeal, or supplement the Municipal Code; provide zoning specifications; or appropriate money for specific purposes. Most ordinances require two hearings: an introduction, followed 12 days later by the adoption. The Appropriations Ordinance may be passed on the day of introduction after two public hearings.
OTHER LOCAL TAXES: Taxes other than property tax. This category includes sales tax, property transfer tax, and transient occupancy tax.
OTHER POST-EMPLOYMENT BENEFITS (OPEB): Non-pension benefits provided to employees after employment ends are referred to as Other Post Employment Benefits or OPEB. The definition of OPEB, according to the Governmental Accounting Standards Board (GASB), includes health insurance coverage for retirees and their families, dental insurance, life insurance, and term care coverage. OPEB are a part of the compensation package employees earn each year, even though the benefits are not received until employment has ended.
OTHER REVENUES: This category consists mainly of refunds and revenue generated from the sale of publications and excess inventory.
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PERFORMANCE MEASURES: Performance Measures are specific quantitative measures or qualitative assessments of results obtained through a program or activity, and summarize the relationship between inputs and outputs in achieving outcomes with respect to effectiveness, cost (efficiency), and quality.
PERSONNEL EXPENSE: Expenditures related to employee compensation including salaries and wages, fringe benefits, retirement, and special pays, such as shift differentials.
POLICY ISSUES: The addition, expansion, reduction, or modification of programs that have significant implications/impacts to the City or public.
POLICE OFFICERS ASSOCIATION (POA): The Union representing the sworn officers of the San Diego Police Department.
PRELIMINARY OFFICIAL STATEMENT (POS): A version of an Official Statement in preliminary form without pricing, yield or maturity information used by the Issuer or Underwriters to inform the public prior to receipt of bids at competitive bidding or prior to the assignment of an interest rate and offering price in a negotiated sale. Orders for the security may not be taken based on a distribution of these preliminary documents, and a statement to this effect is usually contained on the cover page.
PROPERTY TAX: An ad valorem tax on real property, based upon the value of the property. In accordance with Proposition 13, secured property is taxed at the rate of one percent of assessed valuation, plus a rate sufficient to generate revenue necessary to pay for voter-approved indebtedness.
PROPERTY TRANSFER TAX: A tax imposed whenever the ownership of real property changes.
PROPOSED BUDGET: The Mayor's recommendation for the City's financial operations, which includes an estimate of proposed expenditures and revenues for a given fiscal year. The proposed budget is delivered to the City Council in April of each year.
PUBLIC LIABILITY CLAIMS FUND: A program from which the City pays claims arising from real or alleged acts on the part of the City, including claims for bodily injury, property damage, inverse condemnation, false arrest, and errors and omissions.
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REDEVELOPMENT AGENCY: The Redevelopment Agency of the City of San Diego was created by the City Council in 1958 to alleviate conditions of blight in older, urban areas. The Redevelopment Agency is able to use special legal and financial mechanisms to eliminate blight and improve economic and physical conditions in designated areas of the City. This authority is conferred on the Agency through the state of California's Health and Safety Code (Section 33000-et.seq.), also known as the California Community Redevelopment Law.
REIMBURSEMENT: Fees received as payment for the provision of specific municipal services.
REQUEST FOR PROPOSALS (RFP): The activity of soliciting proposals from businesses that provides a professional service or service and products. The RFP by a City department, program or agency contains a description of the Scope of Services which they are seeking. Businesses respond by proposing how they would accomplish the tasks described in the Scope of Services. Expertise, not price is generally the most important factor in selecting professional service providers. This procurement method is most appropriate when the service, supply, equipment or system is more specifically defined. When using this method, the department has more knowledge of the service they need and can forego the RFQ process with specifications suitable for formal advertising. The City's Municipal Code calls for selections to be made to the lowest responsible and reliable bidder that meets the specifications.
REQUEST FOR QUALIFICATIONS (RFQ): The activity of soliciting statements of qualification from businesses that provides a professional service or service and products. The RFQ issued by a City department, program or agency contains a description of the Scope of Services which they are seeking. Businesses respond by proposing how they would accomplish the tasks described in the Scope of Services. Expertise, not price is generally the most important factor in selecting professional service providers. A RFQ process is used where the services, supplies, equipment or system is not specifically defined, and this process solicits proposals from industry recommending the best approach to perform the job. An RFP process may follow, once qualified bidders are identified.
RESOLUTION: Formal expressions of opinion or intention of the City Council. Resolutions typically become effective upon their adoption.
RETIREE HEALTH CARE: An account that provides health coverage for City of San Diego retirees. General and Safety members who retired on or after July 1, 2005, and are receiving a retirement allowance from San Diego City Employees' Retirement System pursuant to a reciprocity agreement, must have accrued ten years of service with the City of San Diego to receive 100 percent of the retiree health benefit and five years of service with the City of San Diego to receive 50 percent of the retiree health benefit.
REVENUE: Funds received from various sources and treated as income to finance expenditures.
REVENUE AND EXPENSE STATEMENT: The Revenue and Expense Statement reflects financial information of a fiscal and accounting entity including revenues, expenditures, reserves, and balances.
REVENUE CATEGORIES: The major categories of revenue are property taxes, other local taxes, licenses and permits, fines and forfeitures, revenue from money and property, revenue from other agencies, charges for current services, miscellaneous revenue, and transfers from other funds.
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SALARIES AND WAGES: This expenditure category includes salaries, hourly wages, overtime, bilingual pay, and special pay expenses. According to the City of San Diego Charter, fringe benefit expense is not considered a salary or wage expense.
SALARY AND BENEFIT ADJUSTMENT: Adjustments to reflect the annualization of the negotiated salary compensation schedule, negotiated salaries and benefits, changes to average salaries, and other salary and benefit compensation.
SAN DIEGO CITY EMPLOYEES' RETIREMENT SYSTEM (SDCERS): The retirement system for the City of San Diego, Unified Port District, and the San Diego County Regional Airport Authority employees.
SECURITIES AND EXCHANGE COMMISSION (SEC): The City of San Diego entered into a Cease-And-Desist Order with the United States Securities and Exchange Commission on November 14, 2006. The Order called for an Independent Consultant and Independent Monitor to oversee and assist the City with the implementation of recommended remedial actions as outlined by the Kroll Report, and to report progress to the SEC for a three-year period. The SEC Order resulted from the SEC's investigation in to whether the City violated antifraud provisions of the federal securities laws in connections with its offer and sale of over $260 million in municipal bonds in 2002 and 2003, and the filing of related disclosure information with respect to its outstanding bonds, and annual presentations to the rating agencies.
SERVICE LEVEL AGREEMENT (SLA): A SLA is a contract used between City departments that defines the relationship between two parties: the service provider and client departments.
SERVICE LEVELS: See Performance Measures.
SOUTHEASTERN ECONOMIC DEVELOPMENT CORPORATION (SEDC): The Southeastern Economic Development Corporation was established by the City Council in 1981 to carry out redevelopment in southeastern San Diego. SEDC has a nine-member board of directors and a staff to implement programs in its project areas that comprise of approximately 1,055 acres. SEDC administers four redevelopment project areas and one study area:
- Central Imperial
- Gateway Center West
- Mount Hope
- Southcrest
- Dells Imperial Study Area
Visit website at: http://www.sandiego.gov/redevelopment-agency/overview.shtml.
SPECIAL DISTRICT: A designated geographic area established to provide a specialized service usually petitioned for by the residents and approved by the Mayor and City Council (i.e., open space maintenance).
SPECIAL REVENUE FUNDS: These funds account for revenues received that have specific purposes for which they can be used.
STRONG MAYOR FORM OF GOVERNANCE: The City's system of government changed on January 1, 2006 from a City Manager form to a Strong Mayor form. The change, approved by city voters in November 2004, will exist on a five-year trial basis, after which voters will decide whether or not to make the shift permanent. Under the new system, the Mayor is the City's Chief Executive Officer, similar to the governor or the president of the United States. The Council is the legislative body, providing checks and balances to the Mayor's new authority.
STRUCTURAL BUDGET DEFICIT: A structural budget deficit is typically recognized when annual deficits are persistent and recurring over a number of consecutive fiscal years. In these situations, ongoing expenditures consistently exceed ongoing revenues.
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TAX AND REVENUE ANTICIPATION NOTES (TRANS): Short-term notes issued to finance the City's General Fund interim cash flow requirements in anticipation of the receipt of tax proceeds and other revenues later in the fiscal year.
TAX RATE ORDINANCE: This ordinance, annually adopted by the City Council, fixes a rate of taxation for real and personal taxable properties.
TOBACCO SETTLEMENT REVENUES (TSR): These funds come from the settlement of lawsuits against tobacco product manufacturers to recover state expenditures on tobacco-related illnesses. In the State of California, the revenues are split equally between the state and local governments. In 2006, the City of San Diego securitized its future TSRs resulting in gross proceeds of $105.4 million. This money, net of costs, was deposited into the San Diego City Employees' Retirement System Trust Fund in an effort to meet the obligations of current labor contracts requiring infusions into the pension system.
TOURISM MARKETING DISTRICT (TMD): This is a benefit assessment district intended to improve tourism activity and hotel room night consumption. In the City of San Diego the district is citywide, inclusive of all areas within city limits. Qualifying lodging establishments in the district self-impose a special assessment in order to secure a source of revenue for marketing and promotional programs. The assessment is 2.0% of the daily room rate and was established in December 2007.
TRANSIENT OCCUPANCY TAX (TOT): A tax of 10 and one-half cents per dollar assessed on each dollar spent on hotel and motel rooms in the City of San Diego.
TRANSIENT OCCUPANCY TAX FUND: A fund established to receive Transient Occupancy Taxes collected.
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UNALLOCATED RESERVE: This reserve was established to fund major General Fund emergencies and to assist in maintaining a favorable bond rating. Specific expenditures are not budgeted within this reserve; these funds are not reflected in the annual budget. No specific legal guidance or policy restrictions have been placed on the use of these funds. However, City Council authorization is necessary to expend these funds.
UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL): As defined by the Government Finance Officers Association, the UAAL for pension benefits generally represents the difference between the present value of all benefits estimated to be payable to plan members as a result of their service through the valuation date and the actuarial value of plan assets available to pay those benefits. This amount changes over time as a result of changes in accrued benefits, pay levels, rates of return on investments, changes in actuarial assumptions, and changes in the demographics of the employee base.
USER FEES: Charges to users of certain City services, which generate revenue to support only the costs of these services. Examples include library charges, golf course fees, filing fees for planning services, charges for engineering
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VACANCY FACTOR: Adjustments that reduce the funding of personnel expenses due to vacant and/or under-filled positions, salary step savings, and any other circumstances that might contribute to personnel expense savings. The vacancy savings adjustments do not reduce positions.
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WORKERS COMPENSATION FUND: Workers' compensation is a mandatory type of business insurance that provides employees who become injured or ill while on the job with medical coverage and income replacement. The City is self-insured and annually appropriates funds to the Workers Compensation Fund to cover these costs.