Page 424 - City of Westlake FY20 Budget
P. 424

Section 12 Appendix
                                                                                        Glossary of Terms


          •  Account:  A separate financial   •  Amortization: Payment of principal   expenditures are equal to or less than
            reporting unit for budgeting,       plus interest over a fixed period.   the proposed revenues plus fund
            management, or accounting                                               balances.
            purposes.  All budgetary transactions,   •  Appraised Value:  Either the market
            whether revenue or expenditure, are   value or value determined by using   •  Basis of Accounting: A term used to
            recorded in accounts.               another method of valuation         refer to when revenue, expenditures,
                                                according to the Property Tax Code   expenses, and transfers – and related
          •  Activity: A service performed by a   Chapter 23.                       assets and liabilities – are recognized
            department or division.                                                 in the accounts and reported in the
                                              •  Appropriation: An authorization    Town’s financial statements.
          •  Accounts Payable: A liability account   made by the legislative body of a
            reflecting amount of open accounts   government, which permits officials   •  Bond: A written promise to pay a
            owed to private persons or          to incur obligations against and to   specified sum of money, called the
            organizations for goods and services   make expenditures of governmental   face sum of money, called the
            received by a government (but not   resources. Specific appropriations are   principal amount, at a specified date
            including amounts due to other funds   usually made at the fund level and   or dates in the future, called the
            of the same government or to other   are granted for a one-year period.   maturity date(s), together with
            governments).                                                           periodic interest at a specified rate.
                                              •  Appropriation Ordinance:  The
          •  Accounts Receivable: An asset      official enactment by the legislative   •  Bond Covenant: A legally enforceable
            account reflecting amounts owed to   body establishing the legal authority   agreement with bondholders that
            open accounts from private persons   for officials to obligate and expend   requires the governmental agency
            or organizations for goods or services   resources.                     selling the bond to meet certain
            furnished by the government.                                            conditions in the repayment of the
                                              •  Assets:  Resources owned or held by   debt.
          •  Accrual Accounting: Recognition of   the Town which has monetary value.
            the financial effects of transactions,                                •  Bond Ordinance:  A law approving
            events, and circumstances in the   •  Assessed Valuation:  A value that is   the sale of bonds that specifies how
            period(s) when they occur regardless   established for real or personal   proceeds may be spent.
            of when the cash is received or paid.   property for use as a basis for levying
                                                property taxes.                   •  Bond Funds:  Resources derived from
          •  Adopted Budget: The budget as                                          issuance of bonds for financing
            modified and finally approved by the   •  Audit: An examination, usually by an   capital improvements.
            Town Council.  The adopted budget is   official or a private accounting firm
            authorized by resolution that sets the   retained by the Town Council, of   •  Budget: The Town's financial plan for
            legal spending limits for the fiscal   organization financial statements and   a specific fiscal year that contains an
            year.                               the utilization of resources.       estimate of proposed expenditures
                                                                                    and the proposed means of financing
          •  Ad Valorem Tax: A tax based on value   •  Balance Sheet: The basic financial   them.
            (e.g., a property tax)              statement, which discloses the assets,
                                                liability, and equities of an entity at a   •  Budget Amendment:  A revision of
          •  Allocation:  A part of a lump-sum   specific date in conformity with   the adopted budget that, when
            amount, which is designated for     General Accepted Accounting         approved by the Council, replaces the
            expenditure by specific organization   Principles.                      original provision.
            units and/or for special purposes,
            activities, or objects.           •  Balanced Budget: A budget adopted
                                                by the Town Council and authorized
                                                by resolution where the proposed



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