Page 644 - City of Bedford FY22 Budget

Glossary

A b a te m e n t: A r educt i o n o r el i m i nat i o n o f a r eal o r per s o nal pr o per t y t ax, m o t o r v ehi cl e exci s e, a f ee, char g e, o r s peci al
as s es s m ent i m po s ed by a g o v er nm ent al uni t . G rant ed o nl y o n appl i cat i o n o f t he per s o n s eeki ng t he abat em ent and o nl y by
t he co m m i t t i ng g o v er nm ent al uni t .

A ccou n tin g Syste m : The t o t al s t r uct ur e o f r eco r ds and pr o cedur es t hat i dent i f y r eco r d, cl as s i f y , and r epo r t i nf o r m at i o n o n t he
{ nanci al po s i t i o n and o perat i o ns o f a g o v er nm ent al uni t o r any o f i t s f unds , acco unt g r o ups , and o r g ani zat i o nal co m po nent s .

A ccru a l A ccou n tin g : A bas i s o f acco unt i ng i n whi ch r ev enues ar e r eco g ni zed i n t he acco unt i ng per i o d i n whi ch t hey ar e
ear ned and expens es ar e r eco g ni zed i n t he per i o d i n whi hc t hey ar e i ncur r ed.
A ccru e d I n te re st: The am o unt o f i nt er es t t hat has accum ul at ed o n t he debt s i nce t he dat e o f t he l as t i nt er es t pay m ent , and
o n t he s al e o f a bo nd, t he am o unt accr ued up t o but no t i ncl udi ng t he dat e o f del i v er y ( s et t l em ent dat e) . ( S ee Int er es t )

A d Va lore m T a x: A t ax co m put ed f r o m t he as s es s ed v al uat i o n o f l and and i m pr o v em ent s .
A m ortiz a tion : The g radual r epay m ent o f an o bl i g at i o n o v er t i m e and i n acco r dance wi t h a pr edet er m i ned pay m ent s chedul e.

A p p rop ria tion : A l eg al aut ho r i zat i o n f r o m t he co m m uni t y ' s l eg i s l at i v e bo dy t o expend m o ney and i ncur o bl i g at i o ns f o r
s peci { c publ i c pur po s es . An appr o pr i at i o n i s us ual l y l i m i t ed i n am o unt and as t o t he t i m e per i o d wi t hi n whi ch i t m ay be
expended.

A p p rop ria tion O rd in a n ce : The o f { ci al enact m ent by t he Ci t y Co unci l es t abl i s hi ng t he l eg al aut ho r i t y f o r Ci t y o f { ci al s t o
o bl i g at e and expend r es o ur ces .

A rb itra g e : As appl i ed t o m uni ci pal debt , t he i nv es t m ent o f t ax-exem pt bo nds o r no t e pr o ceeds i n hi g her y i el di ng , t axabl e
s ecur i t i es . S ect i o n 103 o f t he Int er nal Rev enue S er v i ce ( IRS ) Co de r es t r i ct s t hi s pract i ce and r equi r es ( bey o nd cer t ai n l i m i t s )
t hat ear ni ng s be r ebat ed ( pai d) t o t he IRS .

A rb itra g e Re b a te : A r equi r ed pay m ent t o t he t axi ng aut ho r i t y ( Int er nal Rev enue S er v i ce) due t o t he exces s i v e y i el d ear ned o n
t he g r o s s pr o ceeds o f debt , abo v e t he bo nd y i el d.

A sse sse d Va lu a tion : A v al ue as s i g ned t o r eal es t at e o r o t her pr o per t y by a g o v er nm ent as t he bas i s f o r l ev y i ng t axes .

A sse ts: Res o ur ces o wned o r hel d by t he Ci t y t hat hav e m o net ar y v al ue.

A u d it: An exam i nat i o n o f a co m m uni t y ' s { nanci al s y s t em s , pr o cedur es , and dat a by a cer t i { ed publ i c acco unt ant ( i ndependent
audi t o r ) , and a r epo r t o n t he f ai r nes s o f { nanci al s t at em ent s and o n l o cal co m pl i ance wi t h s t at ut es and r eg ul at i o ns . The audi t
s er v es as a v al uabl e m anag em ent t o o l i n ev al uat i ng t he { s cal per f o r m ance o f a co m m uni t y .

A u d it Re p ort: Pr epar ed by an i ndependent audi t o r , an audi t r epo r t i ncl udes : ( a) a s t at em ent o f t he s co pe o f t he audi t ; ( b)
expl anat o r y co m m ent s as t o appl i cat i o n o f audi t i ng pr o cedur es ; ( c) { ndi ng s and o pi ni o ns . It i s al m o s t al way s acco m pani ed by
a m anag em ent l et t er whi ch co nt ai ns s uppl em ent ar y co m m ent s and r eco m m endat i o ns .

A va ila b le Fu n d s: B al ances i n t he v ar i o us f und t y pes t hat r epr es ent no n-r ecur r i ng r ev enue s o ur ces . As a m at t er o f s o und
pract i ce, t hey ar e f r equent l y appr o pr i at ed t o m eet unf o r es een expens es , f o r capi t al expendi t ur es o r o t her o ne-t i m e co s t s .

B a la n ce d B u d g e t: A budg et ado pt ed by t he l eg s l at i v e bo dy and aut ho r i zed by o r dnance wher e pr o po s ed expendi t ur es ar e
equal t o o r l es s t han t he pr o po s ed r ev enues .
B a la n ce Sh e e t: A s t at em ent t hat di s cl o s es t he as s et s , l i abi l i t i es , r es er v es and equi t i es o f a f und o r g o v er nm ent al uni t at a
s peci { ed dat e.
B on d : A m eans t o rai s e m o ney t hr o ug h t he i s s uance o f debt . A bo nd i s s uer/ bo r r o wer pr o m i s es i n wr i t i ng t o r epay a s peci { ed
s um o f m o ney , al t er nat el y r ef er r ed t o as f ace v al ue, par v al ue o r bo nd pr i nci pal , t o t he buy er o f t he bo nd o n a s peci { ed f ut ur e
dat e ( m at ur i t y dat e) , t o g et her wi t h per i o di c i nt er es t at a s peci { ed rat e. The t er m o f a bo nd i s al way s g r eat er t han o ne y ear .
( S ee No t e)

City of Bedford, TX | Budget Book 2022 Page 644