In this article, the following terms have the meanings indicated.
CAPITAL BUDGET
A plan or schedule of major construction projects. Capital
improvement items are budgeted separately from the operating budget
because they involve large, one-time expenditures which are usually
financed differently from day-to-day expenses. Capital expenditures
are for projects whose useful lifespan is multi-year or indefinite.
Capital outlays of funds can go for the purchase, construction, or
repair of land; buildings; infrastructure such as storm sewers, roads,
and sidewalks; and unattached equipment or furnishings such as trucks,
road repair equipment, and automobiles.
GENERAL FUND
The fund known as the Town's general fund, annual budget
or operating budget and fund as defined by generally accepted accounting
principles promulgated by the Government Accounting Standards Board
and as referenced and described in Section 805 of the Town Charter
and Title 16 of the Local Government Article of the Maryland Annotated
Code.
MARYLAND LOCAL GOVERNMENT INVESTMENT POOL
The Maryland Local Government Investment Pool (MLGIP) provides
local government units of the state a safe investment vehicle for
the short-term investment of funds. The state legislature created
the Maryland Local Government Investment Pool with the passage of
Article 95, § 22g, of the Annotated Code of Maryland and
more recently defined by Title 17, Subtitle 3, of the Local Government
Article of the Maryland Annotated Code.
PAY-AS-YOU-GO
The pay-as-you-go approach enables a municipality to finance
capital projects with current revenues, rather than borrowing against
future revenues or creating debt by the issuance of bonds. Fiscal
surpluses from taxes, grants, and fee receipts, less current operating
expenditures, reserves, and contingencies, may be allocated annually
for capital financing.
RESERVE ACCOUNT
A continuing, nonlapsing account or fund in which money is
retained to support appropriations that have become unfunded.