Page 382 - Fort Worth City Budget 2019

General and Debt Service

Funds Reserve Policy

funds to be spent before assigned funds, and will consider assigned funds to be
spent before unassigned funds.

For the purposes of this policy, current fiscal year’s actual expenditures will exclude
significant Non-Recurring Items.

Governmental Debt Service Fund

D. Reserve Levels – The City will maintain a minimum level of Restricted, Committed,
and Assigned Fund Balance in each governmental Debt Service Fund equal to two
(16.67%) to three (25%) months of the highest projected debt service over the
succeeding debt service forecast. Amounts used in this calculation shall not include
any amounts allocated for other purposes by the City Council.

While reserves for the General Fund and the General Debt Service Fund are
calculated separately, the resulting individual Reserve requirements will be
combined into one figure to be compared with the total General Fund and Debt
Service Fund’s fund balance.

Proprietary Debt Service Fund

E. Reserve Levels – The City will maintain a minimum level of Restricted Net Position
in proprietary Debt Service Funds between two (16.67%) to three (25%) months of
the highest projected debt service over the succeeding debt service forecast.
Amounts used in this calculation shall not include any amounts allocated for other
purposes by the City Council.

VII. Monitoring Performance

F. 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.

G. 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.

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