Page 314 - Project Detail Sheet_AdoptedBook

ADOPTED | BUDGET

Glossary

ACCRUAL BASIS: The basis of accounting under which transactions are recognized when they
occur, regardless of the timing of estimated cash flows.

ACCRUED EXPENSES: Expense incurred but not due until a later date.

ACTIVITY: A specified and distinguishable line of work performed by a Division.

ADOPTED BUDGET: A term used to describe revenue and expenditures for the fiscal year beginning
October 1 of each year, as approved by the City Council.

AD VALOREM TAX (current): All property, real, personal, mixed tangible, intangible, annexations,
additions, and improvements to property located within the taxing units jurisdiction which are
subject to taxation on January 1 of the current fiscal year. Each year, following the final adoption
of the budget ordinance, the City Council sets the tax rate and levy for the fiscal year beginning
October 1 and continuing through the following September 20.

AD VALOREM TAX (delinquent): All taxes are due on receipt of bill and are delinquent if not paid
before February 1 of the fiscal year in which the tax is imposed.

AD VALOREM TAX (penalty & interest): A delinquent tax incurs a penalty of six percent of the
amount of the tax for the first calendar month it is delinquent, plus one percent for each additional
month or portion of the month the tax remains unpaid prior to July 1 of the year in which it
becomes delinquent. However, the delinquent tax on July 1 incurs a total penalty of twelve
percent of the amount of the delinquent tax without regard to the number of months the tax has
been delinquent.

APPRAISED VALUE: The market value of real and personal property located in the City as of
January 1 each year, as determined by the Tarrant Appraisal District.

APPROPRIATION: A legal authorization granted by a legislative body to make expenditures and
incur obligations for specific purposes. An appropriation is usually limited in amount and time
when it may be expended.

ASSESSED VALUATION: A value that is established for real or personal property for use as a basis
for levying property taxes. (Note: Property values are established by the Tarrant Appraisal
District.)

AUDIT: An examination of an organizations' financial statements and the utilization of resources.

BAD DEBT: A debt that is not collectible and therefore worthless to the creditor

BALANCED BUDGET: A budget (i.e. financial plan, estimate, etc.) whose expenditures are equal to
or less than revenues (resources).

301 NRH | TEXAS