Page 395 - Fort Worth City Budget 2019

Internal Service Fund Reserve Policy

Non-Insurance Funds

1. A minimum level of Working Capital in Non-Insurance Internal Service Funds
equivalent to three percent (3%) of regular, on-going operating expenses
(including transfers out). This calculation does not include non-recurring items
and shall be performed using the operating fund only.

2. No Internal Service Fund shall have a negative Unrestricted Net Position. This
calculation shall be performed by using all of the funds for the respective reporting
group funds of the specific non-insurance related internal service fund.

3. In addition, the City acknowledges that initially, not all funds will meet the
minimum requirement for Working Capital outlined in this policy. A fund will
be considered compliant with this policy as long as the financial position shows
continuous improvement each fiscal year.

VII. Monitoring Performance

A. 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 year-end account
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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 expenses to ensure Reserves
are not used beyond any planned usage.

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 internal service 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

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