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AICP - 1J. Budget

Plan Making and Implementation - J. Budget and Financing

QuestionAnswer
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
Created by: mitaligupta
 

 



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