Page 424 - City of Westlake FY20 Budget

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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