Page 214 - CITY OF AZLE, TEXAS

GLOSSARY

KEY BUDGET TERMS

ACCRUAL BASIS OF ACCOUNTING: A method of accounting in which revenues are
recorded when measurable and earned, and expenses are recognized when a good or service
is used.

AD VALOREM TAX: A tax levied on taxable property (land, improvements and personal
property) for the purpose of financing general operations of the City and debt service
requirements.

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): Usually referred to by its
abbreviation, this report summarizes financial data for the previous fiscal year in a standardized
format. The ACFR is organized by fund and contains two basic types of information: (1) a
balance sheet that compares assets with liabilities and fund balance and (2) an operating
statement that compares revenues and expenditures.

APPRAISED VALUE: The market value of real and personal property located in the City as of
January 1 each year, as determined by the Tarrant Appraisal District.

APPROPRIATION: The maximum level of spending for each fund and for each department as
authorized annually by the City Council.

BOND: A written promise to pay a specified sum of money, called the face value or principal
amount, at a specified date in the future, called the maturity date, together with periodic interest
at a specified rate.

BALANCED BUDGET: A budget in which current revenues equal current expenditures.

BUDGET: A financial plan for a specified period of time (fiscal year) that matches all planned
revenues and expenditures for various municipal services.

BUDGET CALENDAR: The schedule of key dates or milestones that a government follows in
the preparation and adoption of a budget.

BUDGET MESSAGE: A general discussion of the submitted budget presented in writing by the
City Manager as a part of the budget document.

CAPITAL OUTLAY: An expenditure which results in the acquisition of or addition to fixed
assets, and meets these criteria: has an anticipated useful life of more than one year; can be
permanently identified as an individual unit of property; belongs to one of the following
categories: Land, Buildings, Structures & Improvements, Equipment; constitutes a tangible,
permanent addition to the value of City assets; does not constitute repair or maintenance; and,
is not readily susceptible to loss.

CAPITAL PROJECT: A specific and identifiable improvement or purpose for which
expenditures are proposed within the capital budget or capital improvement program.

City of Azle FY 2023-2024 Budget 203