Page 377 - Fort Worth City Budget 2019

Capital Projects Fund Reserve Policy

VI. Policy:

Reserve Levels – The City will maintain reserves in Capital Projects Funds that will
not exceed the amount needed to fully fund the approved projects set forth in the five-
year Capital Improvement Plan.

VII. Monitoring Performance

A. The City will measure its compliance with this policy on an annual basis as of
September 30 each year or as soon as practical after final fiscal year-end financial
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information becomes available. During the course of the fiscal year the
Department of Financial Management Services and the Performance and Budget
Office shall closely monitor the City’s revenues and expenditures/expenses to
ensure Reserves are not used beyond any planned usage.

B. If, based on staff’s analysis and forecasting, the target level of Reserves is not met
at fiscal year-end or is not likely to be met at any point within a five-year time
horizon, then during the annual budget process a plan to replenish the Reserve
levels will be developed by collaboration among affected departments and the
Department of Financial Management Services and the Performance and Budget
Office based on the requirements outlined in this policy.

C. Funding the Reserve – Funding of Reserve targets will generally come from excess
revenues over expenditures/expenses or one-time revenues.

D. Periodic Review of the Targets – At a minimum, during the annual financial
planning/budget process staff shall review the current and five-year projected
Reserves to ensure that they are appropriate given the economic and financial risk
factors the City is subject to.

VIII. Pooled Cash

Cash Balance – In order to provide liquidity adequate to meet the needs and demands
of providing government services including unanticipated reductions in revenues
or unplanned increases in expenditures/expenses, Cash Balances will be maintained
and managed through the Pooled Cash method in such a way as to minimize short-
term borrowing. This reduces overall cost to taxpayers by minimizing interest
expense. The Reserve is intended to support this effort and counterbalance the tax and
major revenues collection cycle.

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