Page 349 - FY 2025 Adopted Operating Budget and Business Plan

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GLOSSARY OF TERMS

Activities: Discrete tasks accomplished by Departments on an on-going basis.

Accrual Basis: A method of financial accounting whereby revenues and expenses are recognized in the accounting
period in which they are earned and incurred. The City’s enterprise and internal service funds utilize this basis of accounting.

Ad Valorem Tax: Property taxes based on assessed valuation of property and collected from property owners.

AFR: see Annual Financial Report.

Annual Financial Report: A report designed to present the financial position and results of operations of various
funds of the City.

Appropriation: An authorization made by the City Council that permits officials to incur obligations against and to make
expenditures of governmental resources. Appropriations are made for fixed amounts and are granted, in the operating budget,
for a one-year period.

Assessed Valuation: A value that is established for real or personal property for use as a basis for levying property
taxes. Property values in Arlington are established by the Tarrant Appraisal District. The assessed value in Arlington for FY
2023 is $35.74 billion. This is an increase of 11.04% percent from the assessed value of $32.19 billion for FY 2022.

Assumptions: Items assumed to be true for a given budget cycle and/or built into budget projections or analysis of a
program or budget.

AV Tax: see Ad Valorem Tax.

BAR: see Budget Analysis Report.

Bifurcated Tax Rate: The City of Arlington has a bifurcated tax rate, meaning that the tax rate is divided into two
smaller tax rate subsets. For example, the adopted FY 2023 tax rate is 59.98¢ per $100 of valuation. The tax rate is then
bifurcated in to two smaller groups, the general fund portion and the debt service portion, which are 40.30¢ and 19.68¢
respectively.

Balanced Budget: As required by law, revenues and interfund transfers must equal or exceed expenditures for all funds.
Additionally, one-time funds cannot be used for recurring expenditures.

Bond Election: A special election held in order that citizens may cast a ballot for or against a proposal to perform a given
capital improvement project. Elections may include approval for the City to issue General Obligation Bonds.

Bond Rating: A rating assigned by outside credit rating companies which gives investors an idea of the creditworthiness
of the City.

Bond Sales: The sale of General Obligation bonds and other debt instruments in the public market, proceeds from which
allow the funding of various capital improvement program (CIP) projects.

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

Budget Analysis Report (BAR): A quarterly report compiled to show fiscal year-end revenue and expenditure
projections, which may allow for adjustments in expenditures as needed so as not to exceed the City’s annual operating budget.

FY 2025 Adopted Budget and Business Plan 340 City of Arlington, Texas