Page 332 - Watauga FY22-23 Budget

GLOSSARY OF TERMS

Taxes: Compulsory charges levied by a government for the purpose of financing services
performed for the common benefit. The term does not include specific charges made against
particular persons or property for current or permanent benefits such as special assessments.
Neither does the term include charges for services rendered only to those paying such charges as,
for example, sewer service charges.

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

Tax Rate: An amount applied to the taxable value of assessed property, expressed as cents per
$100 of assessed property, e.g. $0.591216/$100 of valuation.

Tax Roll: The official list of taxable property for a given tax year and the amount of taxes levied
against each taxpayer.

Taxable Value: Estimated value of taxable property to which the ad valorem tax rate is applied.

Taxes: Compulsory charges levied by a government for the purpose of financing services
performed for the common benefit.

Texas Municipal Retirement System (T.M.R.S.): An agent multiple-employer public retirement
system. Watauga provides pension benefits for all permanent employees through a joint
contributory plan in the statewide Texas Municipal Retirement System.

TXDOT: Acronym for the Texas Department of Transportation, a state government agency
responsible for administering capital funds for street repairs.

Utility Franchise Tax: A tax paid by a utility for a special privilege granted by the Watauga City
Council, permitting the continued use of public property, such as city streets, and usually involving
the elements of monopoly and regulation.

Voter Approval Tax Rate: Calculated maximum property tax rate allowed by law without voter
approval.

Warrants: A legal writ authorizing an officer to make an arrest, seizure, or search.

Working Capital: Current assets less current liabilities. The measure of working capital indicates
the relatively liquid portion of total enterprise fund capital, which constitutes a margin or buffer for
meeting obligations.

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