If you’re new to the world of utility districts, municipalities, or land development, the terminology can be complex and unfamiliar. This glossary of words, acronyms, and definitions from Growing by Metes and Bounds is designed to make it easier to understand the language professionals use every day. Explore the list below to get familiar with key terms that will help you navigate your projects with confidence.
AMORTIZATION – retirement (of a debt) gradually, by installment payments or by sinking fund
APPRAISAL – an official valuation, as for sale, taxation, etc.
ARB – Appraisal Review Board
APPRAISAL ROLL – duplicate tax roll, omitting amounts payable, and showing annual additions of property and proposed values (also called Work Book)
A.V. – Assessed Valuation, the amount of value of any said parcel of property, after the ratio has been applied (by law, the ratio is now 100% of market value, so assessed value always equals appraised value)
BOND – an interest-bearing certificate of debt, usually issued by a government or corporation, obligating the issuer to pay the principal at a specified time
BOND ANTICIPATION NOTE – a promissory note that states that a loan is payable solely from proceeds of an upcoming bond sale
BOND APPLICATION – all documents filed with the Texas Department of Water Resources for approval of bonds
BOND FUND – Debt Service Fund
BOND RESOLUTION – order (by the District) authorizing the issue of bonds and all conditions, provisions, and covenants pertaining to the bonds
C.D. – Certificate of Deposit
CUMULATIVE DELINQUENT LIST – a (tax) listing, showing ownerships, legal descriptions, and tax amounts delinquent for all years
DEBT SERVICE – bonded indebtedness, or the amount needed to be collected in ad valorem taxes to retire the debt of the bonds
DELINQUENT TAX STATEMENT – a printed statement mailed to delinquent taxpayers, showing the amount owed, plus penalties and interest accrued
DEPOSITORY – place of deposit (financial institution)
DISCLOSURE – the document (in the Official Statement) which discloses any information a potential bond buyer may view as detrimental to the value of the bonds; municipal securities laws dictate full disclosure
EFFECTIVE TAX RATE – the comparison rate that produces approximately the same operating revenue in the current year, from property taxable in the year immediately prior, with its current appraisal value, plus sufficient revenue to service the taxing unit’s debt(s) for the coming year
EFFLUENT – outflow, sewage
ELEVATED STORAGE – elevated water tank
ESCROW ACCOUNT – a fund collected in advance to pay extraordinary debts
E.P.A. – Environmental Protection Agency
E.T.J. – extraterritorial jurisdiction
EXTRATERRITORIAL JURISDICTION – in Texas, the annexable perimeter in every direction outlying the city or incorporated limits of any incorporated city, town, or village, distance determined by population
E.V. – estimated value
F.A. – Financial Advisor
FEASIBILITY STUDY – research to determine if a potential project (development) can be successfully accomplished
FEE APPRAISAL – concise, in-depth appraisal of an individual tract of property performed for a specific purpose (i.e., estate, mortgage, insurance appraisals)
FEE SIMPLE – unencumbered by lien(s) or attachment(s)
FIDUCIARY – one who holds something in trust
FIELD NOTES – drawings showing outside dimensions of a particular parcel of property
FLUSHING VALVE – fire hydrant
INCOME APPROACH – values property by measuring the property’s value to produce income
LEGAL DESCRIPTION – established method of identifying any parcel of property geographically, by listing of Lot, Block, Section, and taxing unit (District)
MARKET ANALYSIS – feasibility study
MASS APPRAISAL – appraisal of a large number of properties in a given area to determine value for a specific purpose, implementing land, building, and personal property schedules
MEDIAN – arithmetic middle
MEDIAN LEVEL OF APPRAISAL – the median appraisal ratio of a reasonable and representative sample of properties in an appraisal district; in a numerically ordered list of appraisal ratios, the median ratio is the one that has an equal number of listed ratios above and below it
METES AND BOUNDS – literally, measurements and boundaries of a tract of land; the method consists of beginning at a given point in the boundary of the tract to be described, then reciting the courses (directions) and distances from point to point entirely around the tract
NOTICE OF(BOND) SALE – document within the Official Statement, which offers bonds for sale, noting terms and conditions of sale
OFFICIAL STATEMENT – statement soliciting bids for bonds and containing all buy-sell information relating to the bonds
ONE-HUNDRED YEAR FLOOD PLAIN – the highest level of flooding which, on average, is likely to occur once every one hundred years (i.e., which has one percent chance of occurring each year)
P & I – penalty and interest
PRELIMINARY ENGINEERING REPORT – a report that sets out the basic land plan and preliminary design of utilities with costs and total amount of bond authorization (used in creation of District)
PRELIMINARY PLAN – schematic of utilities for a particular area of development
PROPOSED VALUATION – the value(s) proposed by the Chief Appraiser at the annual Appraisal Review Board
PRUDENT MAN THEORY – a legal standard by which conduct is judged, which considers what action reasonably should be taken under a particular circumstance
PUMPAGE LOG – Operator’s daily record of water amounts pumped from a well
RATIO (of assessment) – a given percentage of full market value, to which a tax will be applied (no longer legal in assessment)
RENDITION – signed and sworn statement of value filed with the appraisal district by a property owner, including legal description, correct ownership, and address
RENDITION FORM – a preprinted form available upon request from an appraisal district for the convenience of the property owner or authorized agent
SHERIFF’S DEED – a type of deed instrument issued when a property is sold at auction to satisfy a statutory tax lien
STATUTORY TAX LIEN – provided for by the Constitution and acts of the Legislature, a security device to enforce the payment of a tax, if necessary by seizure and sale of property
TAPS – entries into the main system distribution line connecting the customer to the water system
TAXABLE VALUE – appraised value of property, after adjusting for exemptions, deferrals, and special use (open space) provisions
TAX BASE – taxable value of all property within a taxing jurisdiction
TAX DEED – the legal instrument set forth by the court in Statutory Tax Lien, which stipulates all conditions and specifications for the sale and redemption of property that has been sold for delinquent taxes
TAX FUND – a depository account established by the tax office where tax collections monies are kept prior to transfer into the Debt Service Fund
TAX RATE – an amount determined annually, expressed in terms of cents or dollars and cents “on the $100 valuation,” which, when multiplied by the Tax Base should be equal to the total levy; the tax rate is adopted by the governing body
TAX REPORT – monthly accounting by the tax office of tax collections status and authorized disbursements