Page 251 - Colleyville FY19 Budget

GLOSSARY
KEY BUDGET TERMS

ACCRUAL BASIS: A method of accounting that recognizes the financial
effect of transactions, events, and interfund activities when they occur,
regardless of the timing of cash flows.

AD VALOREM TAX: A tax levied on taxable property (land, improvements
and personal property) for the purpose of financing general operations of the
City and debt service requirements.

APPRAISED VALUE: The market value of real and personal property
located in the City as of January 1 each year, which is determined by the
Tarrant Appraisal District.

APPROPRIATION: The maximum level of spending for each fund and for
each department as authorized annually by the City Council.

ARBITRAGE: The difference between the interest paid on tax exempt bonds
and the interest earned by investing the proceeds of the tax exempt bonds
at higher yields.

ASSESSED VALUATION: A value that is established for real or personal
property used as a basis for levying property taxes. (Note: Property values
are established by Tarrant Appraisal District).

AUDIT: A formal examination of an organization’s financial records.

BALANCED BUDGET: A budget adopted by the City Council and authorized
by ordinance where the proposed expenditures are equal or less that the
proposed revenues plus fund balances.

BOND: A written promise to pay a specified sum of money, called the face
value or principal amount, at a specified date in the future, called the
maturity date, together with periodic interest at a specified rate.

BONDED DEBT: Portion of indebtedness represented by outstanding bonds.

BUDGET: A financial plan for a specified period of time (fiscal year) that
matches all planned revenues and expenditures for various municipal
services.

BUDGET MESSAGE: A general discussion of the submitted budget

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