Page 171 - CityofKennedaleFY26AdoptedBudget

BUDGET GLOSSARY

Accrual Accounting - A basis 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.
ACFR – Annual Comprehensive Financial Report. Government financial statements that comply with
generally accepted accounting principles (GAAP).

Ad Valorem - Latin for "value of". Refers to the tax assessed against real (land and buildings) and
personal (equipment and furniture) property.

Appraised Value - To make an estimate of value for the purpose of taxation. (The Tarrant Appraisal
District establishes Property values).
Audit - The objective of the ordinary audit of financial statements by the independent auditor is the
expression of an opinion in the fairness with which they present, in all material respects, financial
position, results of operations, and it’s cash flow in conformity with generally accepted accounting
practices.

Balanced Budget - A financial plan for a fiscal year that matches all planned revenues and expenditures
with the services provided to the residents of the City based on established policies.

Bond - A written promise to pay a sum of money on a specific date(s) at a specific interest rate. The
interest payments and the repayment of the principal are detailed in a bond ordinance.

Bonded Debt - That portion of indebtedness represented by outstanding bonds.

Budget - A financial plan, for a specified period, of operations that matches all planned revenues and
expenditures with the services provided the residents of the City.

Budget Calendar - The schedule of key dates, which the City follows in the preparation and adoption of
the budget.

Budgetary Control - The control or management of a government or enterprise in accordance with an
approved budget for the purpose of keeping expenditures within the limitations of available
appropriations and available revenues.
Calculated Effective Tax Rate - State law in Texas prescribes a formula for calculating the effective tax
rate for cities. The net effect of the formula is to produce a tax rate that goes down when property
values rise because of inflation and vice versa. The intent is to generate a rate that produces
approximately the same revenue as the year before. The formula does make adjustments for newly
annexed property and newly constructed property for the effective tax rate calculation.
Capital Improvement Program - A plan for purchasing capital expenditures over a period of years to
meet capital needs arising from the long-term work program or otherwise. It sets forth each project or
other contemplated expenditure in which the government is to have part and specifies the full resources
estimated to be available to finance the projected expenditures.

Capital Projects Fund - A fund created to account for financial resources to be used for the acquisition
or the construction of major capital facilities or equipment.

CITYOFKENNEDALE.COM/FINANCE 170