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City of Mansfield Annual Budget and Service Program Fiscal Year 2025-2026 Table of Contents

Glossary

Abatement: A reduction or elimination of a real or personal property 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 report information on
the financial 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 Report - A detailed report of an organization's financial activities and performance
over the fiscal year.

Amortization:
schedule.

Appropriation:
specific 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 Service (IRS) Code restricts this practice and requires (beyond certain limits)
that earnings be rebated (paid) to the IRS.

Assessed Valuation: A value assigned to real estate or other property by a government as the basis for levying taxes.

Assets:

Audit: An examination of a community's financial systems, procedures, and data by a certified public accountant
(independent auditor), and a report on the fairness of financial statements and on local compliance with statutes and
regulations. The audit serves as a valuable management tool in evaluating the fiscal performance of a community.

Audit Report: Prepared by an independent auditor, an audit report includes: (a) a statement of the scope of the audit; (b)
explanatory comments as to application of auditing procedures; (c) findings 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, reserves and equities of a fund or governmental unit at a
specified date.

Betterments (Special Assessments): Whenever a specific area of a community receives benefit from a public
improvement (e.g., water, sewer, sidewalk, etc.), special property taxes may be assessed to reimburse the governmental
entity for all or part of the costs it incurred. Each parcel receiving benefit from the improvement is assessed for its
proportionate share of the cost of such improvements. The proportionate share may be paid in full or the property owner
may request that the assessors apportion the betterment over 20 years. Over the life of the betterment, one year’s

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