Page 188 - Haltom City FY 22 Budget

CITY OF HALTOM CITY ANNUAL BUDGET, FY2022 Supplemental Information

GLOSSARY OF KEY BUDGET TERMS

Abatement: A complete or partial cancellation of a levy imposed by the City, usually applied to tax
levies, special assessments and service charges.

Account: A separate financial reporting unit for budgeting, management or accounting purposes.
All budgetary transactions, whether revenue or expenditure, are recorded in accounts.
Accrual Basis of Accounting: A method of accounting that recognizes the financial effect of
transactions, events, and interfund activities when they occur, regardless of the timing of the
related cash flows.

Ad Valorem Tax: A tax computed from the assessed valuation of land, improvements and
properties.

Amendment: In budgetary terms, a revision to the Appropriation Ordinance approved by the City
Council.

Appropriation: An authorization made by the legislative body of a government that permits
officials to incur obligations against and to make expenditures of governmental resources. Specific
appropriations are usually made at the fund level and are granted for a one-year period.

Appropriation Ordinance: The official enactment by the legislative body establishing the legal
authority for officials to obligate and expend resources.

Assessed Valuation: A valuation set upon real estate or other property by a government as a
basis for levying taxes. Sometimes called appraised value.

Assets: Resources owned or held by that have monetary value.

Balanced Budget: The fiscal conditioned reached when reserves on hand, coupled with
projected current period revenues, equals the adopted budget of expenditures or expenses.

Bond: A written promise to pay a sum of money on a specific date at a specified interest rate. The
interest payments and the repayment of the principal are detailed in a bond ordinance. The most
common types of bonds are general obligation and revenue bonds. These are most frequently
used for construction of large capital projects, such as buildings, streets, bridges, infrastructures,
drainage, water systems and sewer systems.

Budget: The City’s financial plan for a specific fiscal year that contains both the estimated
revenues to be received during the year and the proposed expenditures to be incurred to achieve
stated objectives.

Budget Calendar: A schedule of key dates or milestones that the City departments follow in the
preparation, adoption and administration of the budget.