Page 388 - Fort Worth City Budget 2019

Enterprise Fund

Reserve Policy

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 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 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

It is the intent of the City to limit use of Enterprise Reserves to address unanticipated,
Non-Recurring needs. Reserves shall not be applied to recurring annual operating
expenses. 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.

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:

1. Fund accrued liabilities, including but not limited to debt
service, pension, and other post-employment benefits as
directed and approved within the long-term financial plan and
the annual budget ordinance. Priority will be given to those
items that relieve budget or financial operating pressure in
future periods;

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