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APPROVED BUDGET FISCAL YEAR 2022-2023

Reserve - An account used to indicate that a portion of a fund balance is restricted for a specific
purpose.

Retained Earnings - The excess of assets less liabilities in the proprietary funds.

Revenue - Funds that the government receives as income.

Revenue Bonds - Bonds whose principal and interest are payable exclusively from a revenue source
pledged as the payment source before issuance.

Risk Management - An organized attempt to protect a government's assets against accidental loss in the
most economic method.

ROW – Right of Way

Senate Bill 2 - Senate Bill 2, also known as the Texas Property Tax Reform and Transparency Act of
2019, was passed by the Texas Legislature in 2019. At its most fundamental level, S.B. 2 reforms the
system of property taxation in three primary ways: (1) lowering the tax rate a taxing unit can adopt without
voter approval and requiring a mandatory election to go above the lowered rate; (2) making numerous
changes to the procedure by which a city adopts a tax rate; and (3) making several changes to the
property tax appraisal process.

Strategic Information Resource Plan - A document that is available from the Information Services
Division and serves as a guideline and basis for budgeting for future citywide computer related needs.

Special Revenue Fund - A fund used to account for the proceeds of specific revenue sources (other
than special assessments, expendable trusts or for major capital projects) that are legally restricted to
expenditures for specified purposes.

Sundry Charges - This includes items that are not in the supply or maintenance category. These
expenses may be for services provided by private business organizations, by public utilities, for
contract labor, for outside consultants, payment of claims and damages against the City, or service
provided by some department of the government agency.

Tax Base - The total value of all real and personal property in the City as of January 1st of each year, as
certified by the Appraisal Review Board. The tax base represents net value after all exemptions.

Tax Levy - The resultant product when the tax rate per one hundred dollars is multiplied by the tax
base.

Tax Rate - Total tax rate is set by Council and is made up of two components: debt service and
operations rates. According to Section 5.42 of the City Charter, the maximum tax rate shall not exceed
$1.50 on the one hundred dollars ($100.00) valuation of taxable property within the City.

Truth and Taxation – Concept embodied in the Texas Constitution that requires local taxing units to
make taxpayers aware of tax rate proposals and to afford taxpayers the opportunity to limit tax increases.

Truth and Taxation Calculation - Requires taxing units to calculate two rates after receiving a certified
appraisal roll from the chief appraiser.

Voter-Approval Rate - If the governing body of a taxing unit adopts a tax rate that exceeds the voter
approval tax rate, it must automatically hold an election for voters to approve the tax increase.

Working Capital – Current assets minus current liabilities.

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