Page 441 - Keller FY20 Approved Budget
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GLOSSARY OF TERMS
The annual budget contains specialized and technical terminology that is unique to public finance and
budgeting. To assist the reader in understanding these terms, this glossary has been included in the
budget document.
−A− −B−
ACCRUAL BASIS OF ACCOUNTING. A basis BALANCED BUDGET. A budget adopted by
of accounting in which revenues are recognized the City Council and authorized by ordinance
in the accounting period in which they are where the proposed expenditures are equal to or
earned, and expenses are recognized in the less than the proposed revenues plus fund
period in which they are incurred. For example, balances.
water revenues which are billed in September
are recorded as revenues in September, even BASIS OF ACCOUNTING. A term used
though payment in cash is actually received in referring as to when revenues, expenditures,
October. Similarly, services or supplies that expenses, and transfers –and related assets
have been received in September, but actually and liabilities – are recognized in the accounts
paid for by the City in October, are recorded as and reported in the City's financial statements.
obligations of the City (expenses) in September.
Accrual accounting is used for the City's BUDGET. The City's financial plan that contains
enterprise funds for financial reporting purposes. both the estimated revenues to be received
during the year and the proposed expenditures
ADOPTED BUDGET. The budget as modified to be incurred to achieve stated objectives.
and finally approved by the City Council. The
adopted budget is authorized by ordinance that BUDGET ADJUSTMENT (AMENDMENT). A
sets the legal spending limits for the fiscal year. formal legal procedure utilized by the City to
revise a budget during a fiscal year.
AD VALOREM TAX. A tax levied on the
assessed valuation of land and improvements. BUDGET CALENDAR. The schedule of dates
used as a guide to complete the various steps of
APPRAISED VALUE. The estimated value of the budget preparation and adoption processes.
property for the purpose of taxation, as
established by the Tarrant Appraisal District. BUDGET ENHANCEMENT. A request for
additional funding for a program, service, or the
APPROPRIATION. An authorization made by expansion of current services. Budget
the City Council that permits officials to incur enhancements are used during the budget pre-
obligations against and to make expenditures of paration process in order to identify specific
resources. Appropriations normally are made departmental requests in the proposed budget.
for fixed amounts at the department level and Budget enhancements are ranked in their order
cover, in the operating budget, a one-year of priority by the department manager making
period. the request. Budget enhancements are distin-
guished in the proposed budget separately from
APPROPRIATION (BUDGET) ORDINANCE. the "base line" or "current services" funding
The official enactment by the City Council levels. Also see: DECISION PACKAGE and
establishing the legal authority for City officials SUPPLEMENTAL DECISION PACKAGE.
to obligate and expend resources.
BUDGET MESSAGE. The opening section of
ASSESSED VALUATION. A value that is the budget document from the City Manager that
established for real or personal property for use provides the City Council and the public with a
as a basis for levying property taxes. Property general summary of the most important aspects
values in Keller are established by the Tarrant of the budget. Sometimes referred to as a
Appraisal District. "transmittal letter."
ASSETS. Resources owned or held by the City BUDGETARY CONTROL. The control of man-
that have monetary value. agement of the organization in accordance with
an approved budget for the purpose of keeping
AUTHORIZED POSITION(S). See FULL-TIME expenditures within the limitations of available
EQUIVALENT POSITION. appropriations and revenues.
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