Page 303 - Saginaw FY22 Adopted Annual Budget

CITY OF SAGINAW
BUDGET GLOSSARY

The Annual Budget contains specialized and technical terminology that is unique to public finance and
budgeting. To assist the reader of the Annual Budget document in understanding these terms, this
budget glossary has been included in the 2019-2020 Annual Budget.

ACCOUNTS PAYABLE: A liability account reflecting amounts on open accounts owing to private
persons or organizations for goods and services received by a government (but not including amounts
due to other funds of the same government or to other governments).

ACCOUNTS RECEIVABLE: An asset account reflecting amounts owing to open accounts from private
persons or organizations for goods and services furnished by a government.

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

AD VALOREM TAXES (Current): Latin for "value of". Refers to the tax assessed against real (land and
buildings) and personal (equipment and furniture) property located within the taxing unit’s jurisdiction
which are subject to taxation on January 1 of the current year. Following the receipt of the City’s certified
values from the appraisal district, the City Council sets the tax rate and levies taxes for the fiscal year
beginning October 1 and continuing through the following September 30.

AD VALOREM TAXES (Delinquent): Ad Valorem taxes are due on October 1 and become delinquent
if not paid before February 1 of the fiscal year in which it is imposed.

AD VALOREM TAXES (Penalty and interest): A delinquent tax incurs a penalty of seven (7%) percent
of the amount of the tax for the first calendar month it is delinquent, plus one (2%) 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 (18%) percent
of the amount of the delinquent tax without regard to the number of months the tax has been delinquent.

ADVANCE REFUNDING BONDS: Bonds issued to refund an outstanding bond issue prior to the date
on which the outstanding bonds become due or callable. Proceeds of the advance funding bonds are
deposited in escrow with a fiduciary, invested in US Treasury Bonds or other authorized securities, and
used to redeem the underlying bonds at maturity or call date and to pay interest on the bonds being
refunded or the advance refunding bonds.

APPRAISAL REVIEW BOARD (ARB): This is a group of local citizens authorized to check Tarrant
Appraisal District's work and resolve disputes with taxpayers. This board certifies the appraised values
on the appraisal roll.

APPRAISED VALUE: To make an estimate of property value for the purpose of taxation. The market
value of real and personal property located in the City as of January 1 each year. (City of Saginaw
property values are determined by the Tarrant Appraisal District.)

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

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