Page 245 - BudgetBookCover_FY26_Adopted.pdf

Arbitrage

With respect to the issuance of municipal securities, arbitrage usually refers to the difference between the interest paid on tax-exempt bonds and the interest
earned by investing the proceeds of the bonds in higher yielding taxable securities. Federal income tax laws generally restrict the ability to earn positive
arbitrage in connection with tax-exempt bonds.

Assessed Valuation

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

Audit

A standardized, systematic and independent examination of data, statements, records, operations and performances of an enterprise for the purpose of
examining for compliance with standardized procedures for managing cash on hand, receipts, payments, investments, and other allocations of monetary
resources, capital assets or the use of personnel time and expertise.

Balanced Budget

A budget adopted by the City Council and authorized by ordinance where the proposed expenditures are equal to or less than the proposed revenues plus fund
balances.

Basis of Accounting

A term used to refer as to when revenues, expenditures, expenses, and transfers - and related assets and liabilities - are recognized in the accounts and
reported in the City's financial statements.

Bond

A written promise to pay a sum of money on a specific date at a specific interest rate.

Budget

The City's financial plan that contains both the estimated revenues to be received during the year and the proposed expenditures to be incurred to achieve
stated objectives.

Budget Amendment

A formal legal procedure utilized by the City to revise a budget during a fiscal year.

Budget Calendar

The schedule of dates used as a guide to complete the various steps the budget preparation and adoption process.

Budget Message

The opening section of the budget document from the City Manager that provides the City Council and the public with a general summary of the most important
aspects of the budget. Sometimes referred to as a "transmittal letter."

Budgetary Control

The control of management of the organization in accordance with an approved budget for the purpose of keeping expenditures within the limitations of
available appropriations and revenues.

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