Page 345 - FY 2026-2027 Adopted Budget Book

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.

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.

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)

Ad Valorem Tax: A tax computed from the assessed valuation of land and improvements.

Amortization: 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 specific public purposes. An appropriation is usually limited in amount and as to the time period
within which it may be expended.

Appropriation Ordinance: The official enactment by the City Council establishing the legal authority for City
officials to obligate and expend resources.

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.

Arbitrage Rebate: A required payment to the taxing authority (Internal Revenue Service) due to the excessive
yield earned on the gross proceeds of debt, above the bond yield.

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

Assets: Resources owned or held by the City that have monetary value.

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

FY 2026-2027 Adopted Budget Book · September 15, 2026 341