Page 183 - Haltom City FY19 Annual Budget

Budgetary Basis of Accounting: The method used to determine when revenues and
expenditures are recognized for budgetary purposes.

Capital Expenditure: Acquisition of property, facilities or equipment with an initial
acquisition cost of $5,000 and a useful life greater than two years (see also capital outlay).

Capital Improvement Plan: A multi-year plan for capital expenditures to be
accomplished over a five-year period. It contains the list, purpose and financing of
projects.

Capital Outlay: An expenditure which results in the acquisition of or addition to capital
assets and meets these criteria: has a value that is over the capitalization threshold
established by the City; has an anticipated useful life of more than one year; can be
permanently identified as an individual unit of property; constitutes a permanent addition
to the value of City assets; and does not constitute repair or maintenance (see also capital
expenditure).

Capital Projects Funds: Fund type used to account for financial resources to be used
for the acquisition or construction of major capital facilities (other than those financed by
proprietary funds and trust funds.)

Capitalization Threshold: The dollar value at which a government elects to capitalize
tangible or intangible assets that are used in operations and that have initial useful lives
extending beyond a single reporting period. The capitalization threshold for City of
Haltom City is at $5,000.

Cash Basis of Accounting: A method of accounting that recognizes transactions or
events when related cash amounts are received or disbursed.

Current Taxes: Taxes that are levied and due within one year.

Debt Service: The City’s obligation to pay the principal and interest of all bonds and other
debt instruments according to a pre-determined payment schedule.

Debt Service Fund: Governmental fund type used to account for the accumulation of
resources for, and the payment of, general long-term debt principal and interest.

Delinquent Taxes: Taxes that remain unpaid on and after the date which a penalty for
non-payment is attached.

Department: An entity within the City for the administration of specifically enumerated
duties. A department head is responsible for the accomplishment of the tasks assigned
and the fiscal administration of the department.

Depreciation: The process of estimating and recording the lost usefulness, expired
useful life or diminution of service from a fixed asset that cannot or will not be restored by
repair and will be replaced. The cost of the fixed asset’s lost usefulness is the
depreciation or the cost to reserve in order to replace the item at the end of its useful life.

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