Page 381 - Fort Worth City Budget 2019

General and Debt Service

Funds Reserve Policy

V. Related Documents and References:

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

VI. Policy:

General Fund

A. Reserve Levels - The City will maintain a minimum Unassigned Fund Balance in
the General Fund equivalent to ten percent (10%) of regular ongoing operating
expenditures, with a goal of two months (16.67%) of regular ongoing operating
expenditures. Regular ongoing operating expenditures shall not include the
portion of funds transferred from the General Fund to the Capital Project Fund to
support pay-go capital projects.

B. Committed Fund Balance – The City Council maintains the City’s highest level of
decision-making authority and the formal action that is required to be taken to
establish, modify, or rescind a fund balance commitment is an item placed on the
City Council’s agenda and approved at a City Council meeting. The action must
either approve or rescind, as applicable, prior to the last day of the fiscal year for
which the commitment is made. The amount subject to the constraint may be
determined in the subsequent period.

C. Assigned Fund Balance – The City Council, through adoption of this policy, have
authorized the City Manager or his/her designee and the Chief Financial Officer /
Director of Finance to jointly designate or commit assigned fund balances without
further City Council approval. It should be noted that this authority only gives the
ability to designate future “intended” uses of fund balance that is in excess of
nonspendable, restricted, and committed amounts, and the minimum required
reserve. It does not vest additional spending authority in the City Manager or
his/her designee or Chief Financial Officer / Director of Finance. Subsequent
appropriations of fund balance would continue to require City Council approval.

Spending Priorities - When expenditures are incurred for the purposes for which
both restricted and unrestricted fund balance is available, the City will consider
restricted funds to be spent before unrestricted funds. Further, if there is an
expenditure incurred for purposes for which committed, assigned, or unassigned
fund balance classifications could be used, the City will consider committed

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