Page 255 - CityofArlingtonFY26AdoptedBudget

Appendices

GLOSSARY OF TERMS (CONTINUED)

Certificate of Obligation: A type of loan for funding city projects.

CIP: see Capital Improvement Program.

Commercial Paper: Short-term loans for funding projects.

Convention and Event Services Fund: Supports the operation of the Arlington Expo Center and the Convention
and Visitors Bureau. The fund also provides support for the Arts and Historic Preservation. Revenues are from hotel occupancy
taxes and fees at the Expo Center.

Debt Service: Paying back loans and interest.

Deficit: When expenses are more than income.

Depreciation: The decrease in value of assets over time.

Enterprise Fund: A fund for services that operate like a business, In Arlington, the Aviation Fund, the Storm Water
Utility Fund, and the Water and Sewer Fund are enterprise funds.

Expenditure: Money spent by the government.

Fiscal Year: A 12-month period used for budgeting, from October 1 to September 30.

Franchise Fee: A fee paid by businesses for using city property to provide services. Services requiring franchises include
electricity, telephone, water, natural gas, cable television and sanitation.

Fund: A separate account for different city activities.

Fund Balance: The money left in a fund at the end of the fiscal year.

General Fund: The main fund for most city services like police, fire, and parks.

General Obligation Bonds: Bonds for public projects, repaid through property taxes.

Governmental Funds: Funds for tax-supported activities.

Grant: Money given by one entity to another for a specific purpose.

Homestead Exemption: A reduction in property taxes for homeowners. For FY 2026, the exemption in Arlington is
20%, with an additional $60,000 for the elderly and disabled.

Internal Service Fund: Funds for services provided within the city government.

Issuing Debt: Borrowing money through bonds or loans.

Levy: To impose or collect a tax.

Manager’s Message: An overview of the budget from the city manager.

FY 2026 Proposed Budget and Business Plan 249 City of Arlington, Texas