Page 284 - FY2020Colleyville

GLOSSARY
KEY BUDGET TERMS

A

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.

ACCOUNTS PAYABLE: A liability account that shows the amount that an
entity owes to the provider of a good or service.

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).

ASSET: Property with monetary value attached to it that is owned by an
entity.

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

B

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

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