Page 404 - Hurst Budget FY21

CAFR – Comprehensive Annual Financial Report. Government financial statements that comply with
generally accepted accounting principles (GAAP).

Calculated Effective Tax Rate - State law in Texas prescribes a formula for calculating the effective tax
rate for cities. The net effect of the formula is to produce a tax rate that goes down when property
values rise because of inflation and vice versa. The intent is to generate a rate that produces
approximately the same revenue as the year before. The formula does make adjustments for newly
annexed property and newly constructed property for the effective tax rate calculation.

Capital Improvement Program - A plan for purchasing capital expenditures over a period of years to
meet capital needs arising from the long-term work program or otherwise. It sets forth each project or
other contemplated expenditure in which the government is to have part and specifies the full
resources estimated to be available to finance the projected expenditures.

Capital Projects Fund - A fund created to account for financial resources to be used for the acquisition
or the construction of major capital facilities or equipment.

Capital Outlays - Expenditures which result in the acquisition of or addition to, the fixed assets.

CARES Act - The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by
Congress with overwhelming, bipartisan support and signed into law by President Trump on March
27th, 2020.

CDBG – Community Development Block Grant.

Certificates of Obligation - Tax supported bonds that are similar to general obligation bonds and can
be issued after meeting strict publication requirements and with final approval by the City Council.

City Charter - The document of a home rule City similar to a constitution, which establishes the City's
government structure and provides for the distribution of powers and duties among the various
branches of government.

City Council - The Mayor and six (6) Council members collectively acting as the legislative and policy
making body of the City.

Code of Ideals – As part of the City’s customer service initiative, City employees developed a Code of
Ideals to serve as a written statement of their shared values and goals.

Community Development Block Grant (CDBG) - A type of federal grant to improve infrastructure in
specified portions of the community.

Community Services Half Cent Sales Tax Fund - A fund established to record receipts and related
expenses of a 1/2 percent sales tax for Community Services purposes.

Congestion Mitigation and Air Quality (CMAQ) - A type of federal grant to fund transportation
improvements.

Contractual Services - The costs related to services performed for the City by individuals, business, or
utilities.

Crime Control and Prevention District - The State Legislature in 1989 allowed certain cities and
counties to establish a district and impose a local sales tax to fund its programs. Since that time,
eligibility has been extended.

Current Taxes - Taxes levied and due within one year.

392