Page 392 - Fort Worth City Budget 2019

Internal Service Fund Reserve Policy

Insurance Funds

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 internal service insurance fund
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;

2. One-time expenses that do not increase recurring
operating costs that cannot be funded through current
revenues. Emphasis will be placed on one-time uses that
reduce future operating costs; or

3. Start-up expenses for new programs, provided that such
action is approved by the City Council and is
considered in the context of multi-year projections of
revenue and expenses as prepared by the Department of
Finance.

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