Page 376 - Fort Worth City Budget 2019

Capital Projects Fund Reserve Policy

I. Authority:

The Fort Worth City Council is responsible for legislation, policy formulation, and
overall direction setting of the government. This includes the approval of financial
policies which establish and direct the operations of the City of Fort Worth. The City
Manager and Assistant City Managers are responsible for carrying out the policy
directives of the City Council and managing the day-to-day operations of the executive
departments, including the Department of Financial Management Services. This
policy shall be administered on behalf of the City Manager and the Assistant City
Managers by the Chief Financial Officer/Director of Finance.

II. Purpose:

The City desires to maintain a prudent level of financial resources to guard its
stakeholders against service disruption in the event of unexpected temporary revenue
shortfalls or unpredicted one-time expenditures/expenses. In addition, this policy
is intended to document the appropriate Reserve level to protect the City’s credit
worthiness and provide adequate cash flow based upon the traditional operating
cycle. Capital Project Fund Reserves are accumulated and maintained to provide
stability and flexibility to respond to unexpected adversity and/or opportunities and
to minimize the costs associated with short-term cash borrowing.

This policy establishes the amounts the City will strive to maintain in its Capital
Projects Fund Reserve, how the Reserve will be funded, and the conditions under
which the Reserve may be used.

III. Applicability and Scope:

This policy shall apply to the Capital Projects Funds under the budgetary and fiscal
control of the City Manager and the City Council. This policy applies to
governmental and proprietary fund types.

IV. Glossary - See definitions related to this policy provided in the appendix

V. Related Documents and References:

A. Operating and Capital Budget Policy
B. Long-Term Financial Planning Policy
C. Capital Asset Investment and Management Policy

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