Page 437 - Southlake FY23 Budget

APPEnDIx

BUDGET GLOSSARY

A
Accrual Basis Accounting: A method of accounting for revenues and expenses when earned or incurred instead of
when cash is received or spent.

Actual: Monies which have already been used or received as opposed to budgeted monies which are estimates of
possible funds to be used or received.

Ad Valorem—Latin for “value of.” Refers to the tax assessed against real (land and building) and personal (equipment
and furniture) property. See property taxes.

Amortization: Payment of principal plus interest over a fixed period of time.

Appropriation: A legal authorization granted by the City Council to make expenditures and to incur obligations for a
specific purpose or program. Usually granted for a one-year period.

Arbitrage: The additional investment earnings a municipality receives by borrowing (issuing bonds) at tax exempt
rates and investing the proceeds at higher yielding taxable rates. The difference is the arbitrage amount which must
be paid to the IRS.

Assessed Valuation: The estimated value placed upon real or personal property as the basis for levying property
taxes.

Audit: An examination to determine the accuracy and validity of records and reports by an agency whose duty it is to
make sure the City conforms to established procedures and policies.

B

Balance Sheet: The basic financial statement, which discloses the assets, liability and equities of an entity at a
specific date in conformity with Generally Accepted Accounting Principles (GAAP).

Balanced Budget: Annual financial plan in which expenses do not exceed revenues.

Base Budget: The ongoing cost to maintain the current level of service. Inflation is included in the budget without
increasing any level of service.

Bicentennial Concessions Fund: This fund is used to account for the revenues and expenditures dedicated for
Bicentennial Park use. These funds are derived from the City’s contract with Coca-Cola.

Bond: A written promise to pay a specific sum of money (principal) at a specified future date along with periodic
interest rate. Bonds are typically used for long-term debt to pay for a particular capital expenditure.

Budget: A plan of financial operation embodying an estimate of proposed expenditures for a given period and the
proposed means of financing them. Used without any modifier, the term usually indicates a financial plan for a single
fiscal year.

Budget Amendment: A procedure used by the City staff and City Council to revise a budget appropriation.

Budget Calendar: The schedule of key dates involved in the process of adopting and then executing an adopted
budget.

436 FY 2023 City of Southlake | BUDGET BOOK
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