Page 415 - CityofColleyvilleFY25AdoptedBudget

Glossary
Abatement: A reduction or elimination of a real or personal property tax, motor vehicle excise, a fee, charge, or special
assessment imposed by a governmental unit. Granted only on application of the person seeking the abatement and only
by the committing governmental unit.

Accounting System: Records and procedures used to record, classify, and report information on the nancial status and
operations of an entity.

Accrual Basis: A method of accounting in which revenues are recognized in the accounting period in which they are
earned, and expenses are recognized in the period in which they are incurred, regardless of when cash is received or paid.

Accrued Interest: The amount of interest that has accumulated on the debt since the date of the last interest payment,
and on the sale of a bond, the amount accrued up to but not including the date of delivery (settlement date).

Amor tization: The gradual repayment of an obligation over time and in accordance with a predetermined payment
schedule.

Appropriation: A legal authorization from the governing body to expend money and incur obligations for speci c public
purposes. An appropriation is usually limited in amount and time period.

Arbitrage: The reinvestment of the proceeds of tax-exempt securities in materially higher-yielding taxable securities.
Section 103 of the Internal Revenue Service (IRS) Code restricts this practice and requires that earnings above certain
limits be rebated to the IRS.

Assessed Valuation: The estimated value placed upon real and personal property by the chief appraiser of the appraisal
district as the basis for levying property taxes.

Assets: Property owned by the City for which a monetary value has been established.

Audit: An objective examination and evaluation of the nancial statements of the City completed by an outside Certi ed
Public Accountant (CPA) rm to ensure that the nancial records are a fair and accurate representation of the
transactions they claim to represent.

Available Funds: The portion of a fund’s nancial resources that is readily convertible to cash, excluding certain assets
such as inventories or unrealized changes in investment values. Available Funds represent a more accurate re ection of
the City's cash position for budgeting purposes. These funds are calculated by subtracting liabilities and encumbrances
from assets, ensuring that only cash or cash-equivalent resources that are readily available are included. This differs from
Fund Balance, which may include non-liquid assets. The City of Colleyville uses Available Funds in its budgetary process
to assess its ability to meet current operating needs and nance capital projects without the need for additional
borrowing.

Balanced Budget: A budget in which total expenditures do not exceed total revenues for the scal year, ensuring the City
operates within its means. However, a budget is also considered balanced if the City has suf cient reserves to cover any
shortfall between revenues and expenditures. This allows the City of Colleyville to maintain nancial stability while using
accumulated reserves to fund critical one-time expenses, such as capital projects, without compromising its ability to
provide essential services. The use of reserves must still comply with the City’s reserve policies, ensuring that enough
funds remain to meet operating and emergency needs.

Base Budget: Ongoing expense for personnel, contractual services, and the replacement of supplies and equipment
required to maintain service levels previously authorized by the City Council.

Basis of Accounting: The method used to determine when revenues and expenditures are recognized in the accounts
and reported in the nancial statements. For example, the modi ed accrual basis is used for governmental funds.

Bond: A certi cate of debt issued by an entity, guaranteeing payment of the original investment, plus interest, by a
speci ed future date. Bonds are typically used for long-term debt to pay for large capital expenditures.

City of Colleyville | Budget Book 2025 Page 415