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APPROVED BUDGET FISCAL YEAR 2022-2023

BUDGET GLOSSARY

Accrual Accounting - A basis of accounting in which revenues are recognized in the accounting
period in which they are earned, and expenses are recognized in the period in which they are incurred.

ACFR – Annual Comprehensive Financial Report. Government financial statements that comply with
generally accepted accounting principles (GAAP).

Ad Valorem - Latin for "value of". Refers to the tax assessed against real (land and buildings) and
personal (equipment and furniture) property.

Anti-Crime Half Cent Sales Tax Fund - An internal name for the Crime Control and Prevention District
approved by Hurst voters on September 9, 1995 to collect a 1/2 percent sales tax for crime control and
prevention purposes. The tax was renewed by voter referendum for an additional twenty years in May
2010.

Appraised Value - To make an estimate of value for the purpose of taxation. (The Tarrant Appraisal
District establishes Property values).

Appropriation - An authorization made by the City Council, which permits the City to incur obligations
and to make expenditures of resources.

Appropriation Ordinance - The official enactment, by City Council, to legally authorize City staff to
obligate and expend resources.

Assessment Ratio - The ratio at which tax rate is applied to tax base. The assessment ratio is
currently set at 100% by State law.

Audit - The objective of the ordinary audit of financial statements by the independent auditor is the
expression of an opinion in the fairness with which they present, in all material respects, financial
position, results of operations, and it’s cash flow in conformity with generally accepted accounting
practices.

Balanced Budget - A financial plan for a fiscal year that matches all planned revenues and
expenditures with the services provided to the residents of the City based on established policies.

Bond - A written promise to pay a sum of money on a specific date(s) at a specific interest rate. The
interest payments and the repayment of the principal are detailed in a bond ordinance.

Bonded Debt - That portion of indebtedness represented by outstanding bonds.

Budget - A financial plan, for a specified period, of operations that matches all planned revenues and
expenditures with the services provided the residents of the City.

Budget Calendar - The schedule of key dates, which the City follows in the preparation and adoption of
the budget.

Budget Document - The instrument used by the budget-making authority to present a comprehensive
financial plan of operations to the City Council.

Budget Message - The opening section of the budget from the City Manager, which provides the City
Council and the public with a general summary of the most important aspects of the budget.

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