Accrual Basis: A basis of accounting under which transactions are recognized, regardless of the timing of related cash flows; for example, in accrual accounting, revenue that was earned between April 1st and June 30th but for which payment was not received until July 10th is recorded as being received on June 30 rather than July 10.

Ad Valorem Taxes (Current): All property, real, personal, tangible, intangible, annexations, additions, and improvements to property located within the taxing unit’s jurisdiction, which are subject to taxation on January 1st of the current fiscal year. Following the final passage of the appropriation ordinance, Town Council sets the tax rate and levy for the fiscal year beginning October 1st and continuing through the following September 30th.

Balanced Budget: A budget in which current revenues equal current expenditures. Budgets may be balanced after expenditures have been prepared by adjusting taxes and fees to generate total current revenues by drawing down fund balances accumulated from prior years or by short-term borrowing to make up the difference between revenues and taxes and other income and current expenditures.

Budget: A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. The term usually indicates a financial plan for a single fiscal year without any modifier. The term “budget” is used in two senses in practice. Sometimes it designates the financial plan presented to the governing body for adoption, and sometimes the financial plan is finally approved by that body. It is usually necessary to specify whether the budget is preliminary and tentative or whether the governing body has authorized it.

Budget Amendment: A revision of the adopted budget that replaces the original provision when approved by the council. Budget amendments frequently occur throughout the fiscal year as spending priorities shift.

Capital Expenditures: The acquisition of fixed assets, usually authorized in the capital budget, includes land, buildings, infrastructure, and equipment.

Capital Project Fund: used to account for the expenditure of resources transferred from operating funds, the sale of bonds, and other revenues for significant capital improvement projects associated with the town’s capital improvement program and land acquisition projects. These funds are usually created to account for a single project or a related group of projects. They are closed when the projects are completed, even if this occurs over multiple fiscal years.

Certificates of Obligation: a financing mechanism a city may use to pay a contractual obligation incurred in: (1) a construction contract; (2) the purchase of materials, supplies, equipment, machinery, buildings, land, and rights-of-way for authorized needs and purposes; or (3) the payment of professional services, including services provided by tax appraisers, engineers, architects, attorneys, map makers, auditors, financial advisors, and fiscal agents.

Debt Service: The Town’s obligation to pay the principal and interest of all bonds and other debt instruments according to a pre-determined payment schedule.

Department: An organizational unit responsibexactle for providing programs, activities, and functions in a related field.

DFW Airport: The primary international commercial airport serving the Dallas-Fort Worth metroplex area.

Disbursement: Payment for goods and services.

Division: An administrative segment of the Town, which indicates management responsibility for an operation or a group of related activities within a functional area. Divisions are the basic units of the budget upon which departments are composed.

Effective Tax Rate: defined as the tax rate needed to provide the same property tax revenues based on the tax base on the base of the upcoming year. When property values increase, the property tax rate is lowered to collect the same tax revenue as the previous year, excluding new construction.

Emergency Services District: a political subdivision of the State of Texas dedicated to providing fire protection, fire prevention education, and emergency medical services in Argyle, Bartonville, Copper Canyon, Corral City, Northlake, and surrounding areas of Denton County.

Expenditure: This term refers to the outflow of funds paid or to be paid for an asset obtained, or goods and services received regardless of when the expense is paid. This term applies to governmental funds.

Expenses: Charges incurred (whether paid immediately or unpaid) or for operation, maintenance, interest, and other charges. Expenses are used for government-wide financial statements and proprietary funds.

Fiscal Year: the period designated by the Town signifying the beginning and ending period for recording financial transactions. The Town of Northlake has specified October 1st to September 30th as its fiscal year.

Franchise Fee: This is a charge paid for the use of Town streets and public right of way and is instead of all other municipal charges, fees, street rentals, pipe taxes or rentals, easements, or other like franchise fees, inspections, fees, and charges of, every kind except only Ad Valorem and special assessment taxes for public improvements (i.e., gas, telephone, and cable TV).

Fund: An accounting entity that has a set of self-balancing accounts and that records all financial transactions for specific activities of government functions.

Fund Balance: The difference between a fund's assets and its liabilities. Portions of the fund balance may be reserved for various purposes, such as contingencies or encumbrances.

General Fund: The fund used to account for all financial resources except those required to be accounted for in another fund.

Governmental Fund: Those funds through which most governmental functions typically are financed. The acquisition, use, and financial resources and the related current liabilities are accounted for through governmental funds (General, Special Revenue, and General Debt Service).

Homestead Exemption: Helps you save taxes on your home. An exemption removes part of the value of your property from taxation and lowers your taxes. For example, if your home is valued at $100,000and, you qualify for a $20,000 exemption, you pay taxes on your home as if it was worth only $80,000.

Independent School District: type of school district in some US states for primary and secondary education that operates as an entity independent and separate from any municipality, county, or state.

Impact Fees: Planning and budgeting device used to assist cities in managing growth by meeting the demand for increased numbers of roads, water, and sewer lines to serve new development. Impact fees require land developers to pay for a share of a city’s cost of providing off-site infrastructure to serve the developing property. Impact fees allow cities to recoup some of the cost of delivering infrastructure when development begins, rather than waiting until tax revenue or service changes are collected after development has occurred.

Municipal Utility District is one of several special districts that function as independent, limited governments. The purpose of a MUD is to provide a developer with an alternate way to finance infrastructures, such as water, sewer, drainage, and road facilities.

Ordinance: A formal legislative enactment by the governing board of a municipality. If it is not in conflict with any higher form of law, such as a state statute of the constitutional provision, it has the full force and effect of law within the municipality's boundaries to which it applies. The difference between an ordinance and a resolution is that the latter requires less legal formality and has a lower legal status. Ordinarily, the statutes or charter will specify or imply those legislative actions which must be by ordinance and those which may be by resolution. Revenue raising measures, such as imposing taxes, special assessments, and service charges, universally require ordinances.

Property Tax: Property taxes are levied on the real and personal property according to the property’s valuation and the tax rate.

Public Improvement District: defined geographical area established to provide specific types of improvements or maintenance within site financed by assessments against the property owners within the region. Chapter 372 of the Texas Local Government Code authorizes the creation of PIDs by cities.

Revenues: (1) Increases in governmental fund type net current assets other than expenditure refunds and residual equity transfers. Under NCGA Statement 1, general long-term debt proceeds and operating transfers are classified as “other financing sources” rather than revenues. (2) Increases in proprietary fund type net total assets other than expense refunds, capital contributions, and residual equity transfers. Under NCGA Statement 1, operating transfers are classified separately from revenues.

Sales Tax: A general “sales tax” is levied on persons and businesses selling merchandise or services in the town limits on a retail basis. The categories for taxation are defined by state law. Money collected under the authorization of this tax is for the use and benefit of the Town; however, no town may pledge anticipated revenues from this source to secure the payment of funds or other indebtedness.

Tax Increment Reinvestment Zone (TIRZ): a political subdivision of a municipality or county in Texas created to implement tax increment financing. They may be initiated by the city or county or by petition of owners whose total holdings in the zone consist of a majority of the appraised property value.

Tax Rate: The amount of tax stated in terms of a unit of the tax base; for example, $0.50 per $100 (one hundred dollars) assessed property valuation.

Tax Roll: The official list shows the amount of taxes levied against each taxpayer or property. Frequency, the tax roll, and the assessment roll are combined, but the two can be distinguished even in these cases.

Taxable Value: The dollar figure property owners use to determine tax liability. The taxable value is calculated by multiplying the assessed value by the tax rate.

Taxes: Compulsory charges levied by a government for financing services performed for the common benefit. This term does not include specific charges against particular persons or property for current or permanent benefits such as special assessments. Neither does the time include charges for services rendered only to those paying such charges as, for example, sewer service charges.

Water Control and Improvement District: a political subdivision of the State of Texas and is empowered to purchase, construct, operate and maintain everything necessary to provide water, wastewater, and drainage services.


CDC: Centers for Disease Control and Prevention

DFW Airport: Dallas/Fort Worth International Airport

EDC: Economic Development Corporation

ESD: Emergency Services District

FWSD: Fresh Water Supply District

HOT: Hotel Occupancy Tax

ISD: Independent School District

I&S: Interest and Sinking

MMD: Municipal Management District

M&O: Maintenance and Operations

MUD: Municipal Utility District

NPD: Northlake Police Department

PID: Public Improvement District

TIRZ: Tax Increment Reinvestment Zone

WCID: Water Control and Improvement District