CGFO Public Finance and Budget
Ad Valorem Tax - ✔️✔️-a direct tax based "according to value" of property
-entities authorized by law to levy ad valorem taxes on property other than intangible
personal property
-may issue bonds from ad valorem taxation
Appropriation - ✔️✔️legal authorization to make expenditures or enter into obligations
for specific purposes
Assessed Valuation - ✔️✔️an annual determination of the just or fair market value of
property by the county property appraiser for purposes of ad valorem taxation
Activity - ✔️✔️departmental efforts that contribute toward the accomplishment of
specific, identified, program objectives
Assessed Value - ✔️✔️-the value of property for the purpose of levying property taxes
-same as the market value less exemptions in TX
-other states, fraction of the market value
Available Fund Balance - ✔️✔️money remaining from prior years that is not committed
for other purposes and can be allocated in the upcoming budget
Balanced Budget - ✔️✔️-current revenues equal current expenses
-legal requirement for a balance budget may be set by the state or local government
Benefits Received Principle - ✔️✔️-users or those who benefit from a service pay for at
least a portion of the cost of providing that service
-examples include taxes on gasoline that are earmarked for road improvements or
service charges for water and wastewater based on consumption
Bid - ✔️✔️-a response to an inquiry about the cost and availability of goods to be
purchased, usually one from several vendors that are evaluated competitively
Bond - ✔️✔️-a way of borrowing money long term for capital projects
-a promise to repay money borrowed on a particular date often 10 or 20 years into the
future
-most bonds also involve a promise to pay a specified dollar amount of interest at
predetermined intervals
Budget - ✔️✔️-a plan for spending that balances revenues and expenditures over a
fixed time period, usually a year, and that includes a work plan
-the financial plan presented to the body for adoption and the plan finally approved by
that body (proposed and adopted)
Ad Valorem Tax - ✔️✔️-a direct tax based "according to value" of property
-entities authorized by law to levy ad valorem taxes on property other than intangible
personal property
-may issue bonds from ad valorem taxation
Appropriation - ✔️✔️legal authorization to make expenditures or enter into obligations
for specific purposes
Assessed Valuation - ✔️✔️an annual determination of the just or fair market value of
property by the county property appraiser for purposes of ad valorem taxation
Activity - ✔️✔️departmental efforts that contribute toward the accomplishment of
specific, identified, program objectives
Assessed Value - ✔️✔️-the value of property for the purpose of levying property taxes
-same as the market value less exemptions in TX
-other states, fraction of the market value
Available Fund Balance - ✔️✔️money remaining from prior years that is not committed
for other purposes and can be allocated in the upcoming budget
Balanced Budget - ✔️✔️-current revenues equal current expenses
-legal requirement for a balance budget may be set by the state or local government
Benefits Received Principle - ✔️✔️-users or those who benefit from a service pay for at
least a portion of the cost of providing that service
-examples include taxes on gasoline that are earmarked for road improvements or
service charges for water and wastewater based on consumption
Bid - ✔️✔️-a response to an inquiry about the cost and availability of goods to be
purchased, usually one from several vendors that are evaluated competitively
Bond - ✔️✔️-a way of borrowing money long term for capital projects
-a promise to repay money borrowed on a particular date often 10 or 20 years into the
future
-most bonds also involve a promise to pay a specified dollar amount of interest at
predetermined intervals
Budget - ✔️✔️-a plan for spending that balances revenues and expenditures over a
fixed time period, usually a year, and that includes a work plan
-the financial plan presented to the body for adoption and the plan finally approved by
that body (proposed and adopted)
