Page 192 - CityofHaltomFY24Budget

City Of Haltom City Annual Budget, Fy2024 Supplemental Information
GLOSSARY OF KEY BUDGET TERMS
Abatement: A complete or partial cancellation of a levy imposed by the City, usually applied to tax
levies, special assessments and service charges.
Account: A separate financial reporting unit for budgeting, management or accounting purposes.
All budgetary transactions, whether revenue or expenditure, are recorded in accounts.
Accrual Basis of Accounting: A method of accounting that recognizes the financial effect of
transactions, events, and interfund activities when they occur, regardless of the timing of the
related cash flows.
Ad Valorem Tax: A tax computed from the assessed valuation of land, improvements and
properties.
Amendment: In budgetary terms, a revision to the Appropriation Ordinance approved by the City
Council.
Appropriation: An authorization made by the legislative body of a government that permits
officials to incur obligations against and to make expenditures of governmental resources. Specific
appropriations are usually made at the fund level and are granted for a one-year period.
Appropriation Ordinance: The official enactment by the legislative body establishing the legal
authority for officials to obligate and expend resources.
Assessed Valuation: A valuation set upon real estate or other property by a government as a
basis for levying taxes. Sometimes called appraised value.
Assets: Resources owned or held by that have monetary value.
Balanced Budget: The fiscal conditioned reached when reserves on hand, coupled with
projected current period revenues, equals the adopted budget of expenditures or expenses.
Bond: A written promise to pay a sum of money on a specific date at a specified interest rate. The
interest payments and the repayment of the principal are detailed in a bond ordinance. The most
common types of bonds are general obligation and revenue bonds. These are most frequently
used for construction of large capital projects, such as buildings, streets, bridges, infrastructures,
drainage, water systems and sewer systems.
Budget: The City’s financial plan for a specific fiscal year that contains both the estimated
revenues to be received during the year and the proposed expenditures to be incurred to achieve
stated objectives.
Budget Calendar: A schedule of key dates or milestones that the City departments follow in the
preparation, adoption and administration of the budget.
City Of Haltom City Annual Budget, Fy2024 Supplemental Information
Budgetary Basis of Accounting: The method used to determine when revenues and
expenditures are recognized for budgetary purposes.
Capital Expenditure: Acquisition of property, facilities or equipment with an initial acquisition
cost of $5,000 and a useful life greater than two years (see also capital outlay).
Capital Improvement Plan: A multi-year plan for capital expenditures to be accomplished
over a five-year period. It contains the list, purpose and financing of projects.
Capital Outlay: An expenditure which results in the acquisition of or addition to capital assets
and meets these criteria: has a value that is over the capitalization threshold established by
the City; has an anticipated useful life of more than one year; can be permanently identified as
an individual unit of property; constitutes a permanent addition to the value of City assets; and
does not constitute repair or maintenance (see also capital expenditure).
Capital Projects Funds: Fund type used to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by proprietary
funds and trust funds.)
Capitalization Threshold: The dollar value at which a government elects to capitalize tangible
or intangible assets that are used in operations and that have initial useful lives extending
beyond a single reporting period. The capitalization threshold for City of Haltom City is at
$5,000.
Cash Basis of Accounting: A method of accounting that recognizes transactions or events
when related cash amounts are received or disbursed.
Current Taxes: Taxes that are levied and due within one year.
Debt Service: The City’s obligation to pay the principal and interest of all bonds and other debt
instruments according to a pre-determined payment schedule.
Debt Service Fund: Governmental fund type used to account for the accumulation of
resources for, and the payment of, general long-term debt principal and interest.
Delinquent Taxes: Taxes that remain unpaid on and after the date which a penalty for non-
payment is attached.
Department: An entity within the City for the administration of specifically enumerated duties.
A department head is responsible for the accomplishment of the tasks assigned and the fiscal
administration of the department.