Page 394 - Fort Worth City Budget 2019

Internal Service Fund Reserve Policy

Non-Insurance Funds

I. Authority:

The Fort Worth City Council is responsible for legislation, policy formulation, and
overall direction setting of the government. This includes the approval of financial
policies which establish and direct the operations of the City of Fort Worth. The City
Manager and Assistant City Managers are responsible for carrying out the policy
directives of the City Council and managing the day to day operations of the
executive departments, including the Department of Financial Management Services.
This policy shall be administered on behalf of the City Manager and Assistant City
Managers by the Chief Financial Officer/ Director of Finance.

II. Purpose:

The City desires to maintain a prudent level of financial resources to guard its
stakeholders against service disruption in the event of unexpected temporary revenue
shortfalls or unpredicted one-time expenses. In addition, this policy is intended to
document the appropriate Reserve level to protect the City’s credit worthiness and
provide adequate cash flow based upon the traditional operating cycle. The Internal
Service Fund Reserves (for non-insurance funds) are accumulated and maintained to
provide stability and flexibility to respond to unexpected adversity and / or
opportunities and to minimize the costs associated with short- term cash borrowing.

This policy establishes the amounts the City will strive to maintain in its Non-
Insurance Internal Service Fund Reserve, how the Reserve will be funded, and the
conditions under which the Reserves may be used.

III. Applicability and Scope:

This policy shall apply to all Non-Insurance Internal Service Funds under the
budgetary and fiscal control of the City Manager and the City Council.

IV. Glossary - See definitions related to this policy provided in the appendix

V. Related Documents and References:

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

VI. Policy:

Reserve Levels - The City will maintain the following minimum reserve levels in all
Non-Insurance Internal Service Insurance Funds:

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