Page 182 - Haltom City FY19 Annual Budget

CITY OF HALTOM CITY

GLOSSARY OF KEY BUDGET TERMS

Abatement: A complete or partial cancellation of a levy imposed by the City, usually
applied to tax levies, special assessments and service charges.

Account: A separate financial reporting unit for budgeting, management or accounting
purposes. All budgetary transactions, whether revenue or expenditure, are recorded in
accounts.

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

Ad Valorem Tax: A tax computed from the assessed valuation of land, improvements
and properties.

Amendment: In budgetary terms, a revision to the Appropriation Ordinance approved
by the City Council.

Appropriation: An authorization made by the legislative body of a government that
permits officials to incur obligations against and to make expenditures of governmental
resources. Specific appropriations are usually made at the fund level and are granted for
a one-year period.

Appropriation Ordinance: The official enactment by the legislative body establishing the
legal authority for officials to obligate and expend resources.

Assessed Valuation: A valuation set upon real estate or other property by a government
as a basis for levying taxes. Sometimes called appraised value.

Assets: Resources owned or held by that have monetary value.

Balanced Budget: The fiscal conditioned reached when reserves on hand, coupled with
projected current period revenues, equals the adopted budget of expenditures or
expenses.

Bond: A written promise to pay a sum of money on a specific date at a specified interest
rate. The interest payments and the repayment of the principal are detailed in a bond
ordinance. The most common types of bonds are general obligation and revenue bonds.
These are most frequently used for construction of large capital projects, such as
buildings, streets, bridges, infrastructures, drainage, water systems and sewer systems.

Budget: The City’s financial plan for a specific fiscal year that contains both the estimated
revenues to be received during the year and the proposed expenditures to be incurred to
achieve stated objectives.

Budget Calendar: A schedule of key dates or milestones that the City departments follow
in the preparation, adoption and administration of the budget.

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