TMCCP - COURSE #3 EXAM
QUESTIONS AND ANSWERS
The most common method used to forecast expenditures is to create a _________
based on the past year's costs and current fiscal trends, as well as expected
discount rates and currency exchange rates where appropriate. - ANSWER-Price
index
The greatest advantage of taking proper forecasting steps is that there is a level of
____________ and ___________ if predictions go awry. - ANSWER-Accountability
Justification
Capital recovery fees may also be known as __________. - ANSWER-Impact fees
__________ analyses play an important role in the planning, programming,
budgeting system (PPBS) in order to gauge the effect of adding resources to each
program. - ANSWER-Cost-benefit
If a city uses responsibility-centered budgeting, each department is expected to be
_____________. - ANSWER-Self-supporting
Laws governing the levy of taxes and vote on the tax rate are contained in the
______________. - ANSWER-Property Tax Code.
The tax rate is the __________ levied by each taxing body within the governmental
unit. - ANSWER-Millage
Give the formula for figuring a tax bill. - ANSWER-Assessed value X multiplier -
exemptions X tax rate = total bill
A mill is ________ of a penny or _______ for every $1,000 in taxable value. If your
house is worth $100,000, a one-mill tax increase will raise your taxes by _______
per year. - ANSWER-1/10
$1
$100
What is meant by the phrase "effective tax rate"? - ANSWER-The rate of the
previous year's taxes less taxes lost during the year and divided by the value of
properties on the tax roll the previous year.
An 8% tax increase is permitted by law; if the tax increase is more than that, voters
may petition for an _______ to limit the rate to 8%. - ANSWER-Election
Texas law requires that a public hearing on the tax rate be published in a ________,
on the municipality's ________, and on any _________ to which the municipality has
free access. Give the Texas Tax Code citation. - ANSWER-Newspaper
Website
Television station
, Texas Tax Code Sec. 26.06.
The agenda item announcing a public hearing on the tax rate must clearly state that
the _______ and the _______ are to be adopted at the meeting. - ANSWER-Tax
rate
Budget
Municipal officials must, by law, give the public an opportunity for ______ into the
formation of the budget before it is _________. - ANSWER-Input
Adopted
The budget presentation is each department's opportunity to explain how their
proposed budget is based upon a ____________, follows a ___________, carries
out the municipality's ____________ statements, and helps meet the community's
goals. - ANSWER-Community needs assessment
strategic planning process
vision and mission
As an important guideline for making a clear, successful budget presentation, the
budget should be explained in terms of city's _______. - ANSWER-Priorities
Another significant guideline for making a good budget presentation is to be
prepared to _______ each item in your budget. - ANSWER-Justify
At the end of the budget process, the budget for the next fiscal year is ______ at a
publicized public meeting. - ANSWER-Adopted
The municipal council adopts the budget with an ___________. - ANSWER-
Ordinance
Tax bills are usually mailed in _________ with taxes due by _______. - ANSWER-
October
January 31
The ____________ is the municipality's operating fund. - ANSWER-general fund
Funds that are ear-marked for specific projects are called ___________. - ANSWER-
special revenue funds
Funds which are used for construction of buildings, acquisition of land, or major
projects that are spread over several years are called _________. - ANSWER-
capital project funds
The acronym CIP stands for _____________. - ANSWER-capital improvement
program
Enterprise funds are primarily funded by ___________. - ANSWER-user fees
The budget structure depends largely upon the _____ of the municipality. -
ANSWER-size
QUESTIONS AND ANSWERS
The most common method used to forecast expenditures is to create a _________
based on the past year's costs and current fiscal trends, as well as expected
discount rates and currency exchange rates where appropriate. - ANSWER-Price
index
The greatest advantage of taking proper forecasting steps is that there is a level of
____________ and ___________ if predictions go awry. - ANSWER-Accountability
Justification
Capital recovery fees may also be known as __________. - ANSWER-Impact fees
__________ analyses play an important role in the planning, programming,
budgeting system (PPBS) in order to gauge the effect of adding resources to each
program. - ANSWER-Cost-benefit
If a city uses responsibility-centered budgeting, each department is expected to be
_____________. - ANSWER-Self-supporting
Laws governing the levy of taxes and vote on the tax rate are contained in the
______________. - ANSWER-Property Tax Code.
The tax rate is the __________ levied by each taxing body within the governmental
unit. - ANSWER-Millage
Give the formula for figuring a tax bill. - ANSWER-Assessed value X multiplier -
exemptions X tax rate = total bill
A mill is ________ of a penny or _______ for every $1,000 in taxable value. If your
house is worth $100,000, a one-mill tax increase will raise your taxes by _______
per year. - ANSWER-1/10
$1
$100
What is meant by the phrase "effective tax rate"? - ANSWER-The rate of the
previous year's taxes less taxes lost during the year and divided by the value of
properties on the tax roll the previous year.
An 8% tax increase is permitted by law; if the tax increase is more than that, voters
may petition for an _______ to limit the rate to 8%. - ANSWER-Election
Texas law requires that a public hearing on the tax rate be published in a ________,
on the municipality's ________, and on any _________ to which the municipality has
free access. Give the Texas Tax Code citation. - ANSWER-Newspaper
Website
Television station
, Texas Tax Code Sec. 26.06.
The agenda item announcing a public hearing on the tax rate must clearly state that
the _______ and the _______ are to be adopted at the meeting. - ANSWER-Tax
rate
Budget
Municipal officials must, by law, give the public an opportunity for ______ into the
formation of the budget before it is _________. - ANSWER-Input
Adopted
The budget presentation is each department's opportunity to explain how their
proposed budget is based upon a ____________, follows a ___________, carries
out the municipality's ____________ statements, and helps meet the community's
goals. - ANSWER-Community needs assessment
strategic planning process
vision and mission
As an important guideline for making a clear, successful budget presentation, the
budget should be explained in terms of city's _______. - ANSWER-Priorities
Another significant guideline for making a good budget presentation is to be
prepared to _______ each item in your budget. - ANSWER-Justify
At the end of the budget process, the budget for the next fiscal year is ______ at a
publicized public meeting. - ANSWER-Adopted
The municipal council adopts the budget with an ___________. - ANSWER-
Ordinance
Tax bills are usually mailed in _________ with taxes due by _______. - ANSWER-
October
January 31
The ____________ is the municipality's operating fund. - ANSWER-general fund
Funds that are ear-marked for specific projects are called ___________. - ANSWER-
special revenue funds
Funds which are used for construction of buildings, acquisition of land, or major
projects that are spread over several years are called _________. - ANSWER-
capital project funds
The acronym CIP stands for _____________. - ANSWER-capital improvement
program
Enterprise funds are primarily funded by ___________. - ANSWER-user fees
The budget structure depends largely upon the _____ of the municipality. -
ANSWER-size
