Page 383 - Fort Worth City Budget 2019

General and Debt Service

Funds Reserve Policy

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

I. 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 revenue
collection cycle.

IX. Conditions for Use of Reserves

General Fund

It is the intent of the City to limit the use of General Fund Reserves to address
unanticipated, Non-Recurring needs. Reserves shall not be applied to recurring annual
operating expenditures. Reserves may, however, be used to allow time for the City
to restructure its operations in a deliberate manner (as might be required in an
economic downturn), but such use will only take place in the context of an adopted
long-term plan.

Governmental and Proprietary Debt Service Funds

It is the intent of the City to limit the use of Debt Service Reserves to address the re-
payment of any outstanding debt.

X. Excess of Reserves

In the event Reserves exceed the minimum balance requirements, at the end of each
fiscal year, any excess Reserves may be used in the following ways:

General Fund

1. Fund accrued liabilities, including but not limited to debt service, pension,
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