Page 188 - ClearGov | Documents

Glossary

Abatement: A reduction or elimination of a real or personal proper ty 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: The total structure of records and procedures that identify record, classify, and repor t information on
the {nancial position and operations of a governmental unit or any of its funds, account groups, and organizational
components.

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). (See
Interest)

ACFR: Annual Comprehensive Financial Repor t — A detailed repor t of an organization's {nancial activities and
performance over the {scal year.

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

Appropriation: A legal authorization from the community's legislative body to expend money and incur obligations for
speci{c public purposes. An appropriation is usually limited in amount and as to the time period within which it may be
expended.

Arbitrage: As applied to municipal debt , the investment of tax- exempt bonds or note proceeds in higher yielding, taxable
securities. Section 103 of the Internal Revenue Ser vice (IRS) Code restricts this practice and requires (beyond cer tain limits)
that earnings be rebated (paid) to the IRS .
Assessed Valuation: A value assigned to real estate or other proper ty by a government as the basis for levying taxes.

Assets: Items owned by an organization that have economic value, such as cash, investments, proper ty, and equipment .

Audit: An examination of a community's {nancial systems, procedures, and data by a cer ti{ed public accountant
(independent auditor), and a repor t on the fairness of {nancial statements and on local compliance with statutes and
regulations. The audit ser ves as a valuable management tool in evaluating the {scal performance of a community.

Audit Repor t: Prepared by an independent auditor, an audit repor t includes: (a) a statement of the scope of the audit; (b)
explanatory comments as to application of auditing procedures; (c) {ndings and opinions. It is almost always
accompanied by a management letter which contains supplementary comments and recommendations.

Available Funds: Balances in the various fund types that represent non-recurring revenue sources. As a matter of sound
practice, they are frequently appropriated to meet unforeseen expenses, for capital expenditures or other one - time costs.

Balance Sheet: A statement that discloses the assets, liabilities, reser ves and equities of a fund or governmental unit at a
speci{ed date.

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 reser ves to cover any
shor tfall between revenues and expenditures. This allows the City of Colleyville to maintain {nancial stability while using
accumulated reser ves to fund critical one - time expenses, such as capital projects, without compromising its ability to
provide essential ser vices. The use of reser ves must still comply with the City ’s reser ve policies, ensuring that enough
funds remain to meet operating and emergency needs.

FY 2025-2026 Annual Budget | Colleyville Page 188