Page 446 - Keller FY20 Approved Budget

GLOSSARY OF TERMS
STREET MAINTENANCE SALES TAX. Local TAX RATE. The rate applied to all taxable
sales tax authorized by voters in November property to generate revenue. The tax rate is
2003, pursuant to Chapter 327 of the Texas Tax comprised of two components: the debt service
Code, as amended. A tax of 1/8 of one percent rate, and the maintenance and operations
(0.125%) became effective on April 1, 2004, to (M&O) rate.
be used for maintenance and repair of City
streets. In November 2007, voters authorized an TAX ROLL. See TAX BASE.
increase in the rate to ¼ of one percent (0.25%).
TAXES. Compulsory charges levied by the City
SUPPLEMENTAL DECISION PACKAGE. See for the purpose of financing services performed
DECISION PACKAGE and BUDGET for the common benefit.
EHNANCEMENT.
TIF. Acronym for Tax Increment Financing (see
−T− TAX INCREMENT REINVESTMENT ZONE-
TIRZ).
TARRANT APPRAISAL DISTRICT. The
Tarrant Appraisal District is a separate legal TRINITY RIVER AUTHORITY (TRA). A
entity that has been established in each Texas separate governmental entity responsible for
County by the State legislature for the purpose providing water and wastewater services in the
of appraising all property within the county or Trinity River basin. The City contracts with TRA
district. All taxing units within Tarrant County for treatment of wastewater as well as a portion
use the property values certified by the TAD. of its wastewater collection system for the Big
The TAD is governed by a board of directors, Bear Creek and Cade Branch interceptor sewer
whose members are appointed by the individual collection mains.
taxing units within the district.
−U−
TAX BASE. The total value of all real and
st
personal property in the City as of January 1 of UNEARNED REVENUE. See DEFERRED
each year, as certified by the Tarrant Appraisal REVENUE.
District's Appraisal Review Board. The tax base
represents the net taxable value after −W−
exemptions. (Also sometimes referred to as
"assessed taxable value.") WORKING CAPITAL. The current assets less
the current liabilities of a fund. Working capital
TAX INCREMENT REINVESTMENT ZONE does not include long-term assets or liabilities.
(TIRZ). A special financing and development For budgetary purposes, working capital, rather
method authorized by Section 311 of the Texas than retained earnings, is generally used to
Property Tax Code. Tax increment financing reflect the available resources of enterprise
involves pledging future real property tax funds. (See RETAINED EARNINGS.)
revenues generated within the specified rein-
vestment zone (district). TIRZ revenues are
calculated based on the cumulative increase in
taxable values over the district's "base" year
values. (Base year values are established upon
the creation of the reinvestment zone.) Property
taxes generated from the increase in the taxable
values is pledged to fund improvements and
development within the reinvestment zone
(district). NOTE: The terms TIRZ and TIF are
used interchangeably throughout the document.

TAX LEVY. The result of multiplying the ad
valorem property tax rate per one hundred
dollars times the tax base.

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