Page 329 - NRH FY20 Approved Capital Budget

GLOSSARY

ACCRUAL BASIS: The basis of accounting under which transactions are recognized when they occur,
regardless of the timing of estimated cash flows.

ACCRUED EXPENSES: Expense incurred but not due until a later date.

ACTIVITY: A specified and distinguishable line of work performed by a Division.

ADOPTED BUDGET: A term used to describe revenue and expenditures for the fiscal year beginning October
1 of each year, as approved by the City Council.

AD VALOREM TAX (current): All property, real, personal, mixed tangible, intangible, annexations, additions,
and improvements to property located within the taxing units jurisdiction which are subject to taxation on
January 1 of the current fiscal year. Each year, following the final adoption of the budget ordinance, the City
Council sets the tax rate and levy for the fiscal year beginning October 1 and continuing through the following
September 20.

AD VALOREM TAX (delinquent): All taxes are due on receipt of bill and are delinquent if not paid before
February 1 of the fiscal year in which the tax is imposed.

AD VALOREM TAX (penalty & interest): A delinquent tax incurs a penalty of six percent of the amount of the
tax for the first calendar month it is delinquent, plus one percent for each additional month or portion of the
month the tax remains unpaid prior to July 1 of the year in which it becomes delinquent. However, the
delinquent tax on July 1 incurs a total penalty of twelve percent of the amount of the delinquent tax without
regard to the number of months the tax has been delinquent.

APPRAISED VALUE: The market value of real and personal property located in the City as of January 1 each
year, as determined by the Tarrant Appraisal District.

APPROPRIATION: A legal authorization granted by a legislative body to make expenditures and incur
obligations for specific purposes. An appropriation is usually limited in amount and time when it may be
expended.

ASSESSED VALUATION: A value that is established for real or personal property for use as a basis for levying
property taxes. (Note: Property values are established by the Tarrant Appraisal District.)

AUDIT: An examination of an organizations' financial statements and the utilization of resources.

BAD DEBT: A debt that is not collectible and therefore worthless to the creditor

BALANCED BUDGET: A budget (i.e. financial plan, estimate, etc.) whose expenditures are equal to or less
than revenues (resources).

BWC – Acronym for Body Worn Cameras. A video recording system worn on the body by law enforcement
officers.

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 maturity date, together with periodic interest at a specified rate.

BONDED DEBT: Portion of indebtedness represented by outstanding bonds.

BUDGET: A financial plan for a specified period of time (fiscal year) that matches all planned revenues and
expenditures for various municipal services provided for the residents of the City.

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