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AICP - 1J. Budget
Plan Making and Implementation - J. Budget and Financing
Question | Answer |
---|---|
Capital Budget | Cover non-recurring investments in facilities and infrastructure |
Operating Budget | Budgets to cover O&M (Operation and Maintenance) |
Diff. btwn Capital vs. Operating Budget | Public funds can support Capital Budgets. Money can be borrowed only if life of project is greater than payment period. |
PFC | Passenger Facility Charges - related to Airport finance |
Assessment Valuation | 1.Sales price 2.Comparable price check to determine market value 3.Assessed value=% of Market Value (apply classifictaion) 4.Apply equalization factor to get Equalized value 5.Tax Rate (based on equalized value) |
Factors influencing Interest Rate | 1.Market Risk Factors 2.Credit Risk Factors 3.Inflation |
Indicators of Inflation | CPI (Consumer Price Index): consumer purchas PPI (Producer Price Index): producer purchase |
Three companies that issue bond ratings | 1.Standard & Poor2.Moody's 3.Best |
Bond Ratings | S&P: AAA,AA, ... DMoody's: A3, A2 ... DBest: A++, A+ ... D |
Types of Bonds | 1.General Revenue Bond 2.Dedicated Revenue Bond |
General Revenue Bond | Paid out of general tax revenues; Jurisdiction is totally responsible for paying off |
Dedicated Revenue Bond | Paid out of particular income stream, eg.bridge repair through toll revenue; Jurisdiction not responsible to pay off if bond source (eg. toll revenue) falls short.Greater risk to investors |
3 types of taxes | 1.Property Tax 2.Sales Tax 3.Income Tax |
Special Taxes | Taxes on tobacco, alcohol, hotel rooms etc., business license, building permits, zoning change etc., user fee (transit, bridges, tunnels),special districts,intergovt. grants (only transportation) |
Where is the revenue spend (expenditure)? | 1.Education 2.Social Program 3.Emergency 4.Infrastructure |