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GLOSSARY OF TERMS

The annual budget contains specialized and technical terminology that is unique to public finance and
budgeting. To assist the reader in understanding these terms, this glossary has been included in the budget
document.
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ACCRUAL BASIS OF ACCOUNTING. A basis BALANCED BUDGET. A budget adopted by the
of accounting in which revenues are recognized City Council and authorized by ordinance where
in the accounting period in which they are earned, the proposed expenditures are equal to or less
and expenses are recognized in the period in than the proposed revenues plus fund balances.
which they are incurred. For example, water
revenues which are billed in September are BASIS OF ACCOUNTING. A term used referring
recorded as revenues in September, even though as to when revenues, expenditures, expenses,
payment in cash is actually received in October. and transfers –and related assets and liabilities –
Similarly, services or supplies that have been are recognized in the accounts and reported in
received in September, but actually paid for by the City's financial statements.
the City in October, are recorded as obligations
of the City (expenses) in September. Accrual BUDGET. The City's financial plan that contains
accounting is used for the City's enterprise funds both the estimated revenues to be received
for financial reporting purposes. during the year and the proposed expenditures to
be incurred to achieve stated objectives.
ADOPTED BUDGET. The budget as modified
and finally approved by the City Council. The BUDGET ADJUSTMENT (AMENDMENT). A
adopted budget is authorized by ordinance that formal legal procedure utilized by the City to
sets the legal spending limits for the fiscal year. revise a budget during a fiscal year.

AD VALOREM TAX. A tax levied on the BUDGET CALENDAR. The schedule of dates
assessed valuation of land and improvements. used as a guide to complete the various steps of
the budget preparation and adoption processes.
APPRAISED VALUE. The estimated value of
property for the purpose of taxation, as BUDGET ENHANCEMENT. A request for
established by the Tarrant Appraisal District. additional funding for a program, service, or the
expansion of current services. Budget
APPROPRIATION. An authorization made by enhancements are used during the budget pre-
the City Council that permits officials to incur paration process in order to identify specific
obligations against and to make expenditures of departmental requests in the proposed budget.
resources. Appropriations normally are made for Budget enhancements are ranked in their order
fixed amounts at the department level and cover, of priority by the department manager making the
in the operating budget, a one-year period. request. Budget enhancements are distin-
guished in the proposed budget separately from
APPROPRIATION (BUDGET) ORDINANCE. the "base line" or "current services" funding
The official enactment by the City Council levels. Also see: DECISION PACKAGE and
establishing the legal authority for City officials to SUPPLEMENTAL DECISION PACKAGE.
obligate and expend resources.
BUDGET MESSAGE. The opening section of
ASSESSED VALUATION. A value that is the budget document from the City Manager that
established for real or personal property for use provides the City Council and the public with a
as a basis for levying property taxes. Property general summary of the most important aspects
values in Keller are established by the Tarrant of the budget. Sometimes referred to as a
Appraisal District. "transmittal letter."

ASSETS. Resources owned or held by the City BUDGETARY CONTROL. The control of man-
that have monetary value. agement of the organization in accordance with
an approved budget for the purpose of keeping
AUTHORIZED POSITION(S). See FULL-TIME expenditures within the limitations of available
EQUIVALENT POSITION. appropriations and revenues.

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