Page 305 - Southlake FY24 Budget

Budget Glossary
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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.
Balance Sheet: The basic financial statement,
which discloses the assets, liability and equities
of an entity at a specific date in conformity Appendix
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 adopted expenditures for a given
period and the adopted 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.
Budget Hearing: The public hearings conducted
by City Council to consider and adopt the annual
budget.
FY 2024 City of Southlake | Budget Book 305