Page 282 - CityofGrapevineFY25AdoptedBudget

Budget Glossary

ADA – Americans with Disabilities Act

Ad Valorem Tax - Tax computed from the taxable valuation of land and improvements.

Account – A separate financial reporting unit for budgeting, management, or accounting
purposes. All budgetary transactions, whether revenue or expenditure, are recorded in accounts.

Allocation - A part of a lump-sum amount, which is designated for expenditure by specific
organization units and/or for special purposes, activities, or objects.

Annual Comprehensive Financial Report (ACFR) – This report summarizes financial data for
the previous fiscal year in a standardized format.

Appropriation - An authorization granted by the City Council to make expenditures and to incur
obligations identified in the adopted operating budget.

Assessed Valuation - A valuation set upon real and personal property by the Tarrant Appraisal
District as a basis for levying taxes.

Audit – An examination, usually by an official or a private accounting firm retained by Council,
of organization financial statements and the utilization of resources.

Authorized Positions - Number of positions authorized in the final budget.

Balance Sheet – A financial statement that presents the assets, liabilities, reserves and balances
of a specific governmental fund as of a specified date.

Bond – A promise to repay borrowed money on a particular date, often ten or twenty years in the
future. Most bonds also involve a promise to pay a specified dollar amount of interest at
predetermined intervals. The City uses bonds to obtain long-term financing for capital projects.

Bond Covenant – A legally enforceable agreement with bondholders that requires the
governmental agency selling the bond to meet certain conditions in the repayment of the debt.

Bond Ordinance – A law approving the sale of bonds that specifies how proceeds may be spent.

Bond Funds - Resources derived from issuance of bonds for financing capital improvements.

Budget - A financial plan for a specified period of time that matches all planned revenues and
expenditures with various municipal services. It is the primary means by which most of the
expenditure and service delivery activities of a government are controlled.

Budget Amendment - A revision of the adopted budget that, when approved by Council,
replaces the original provision.

Budget Basis - The accounting system used in tracking the budget execution is GAAP.

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