Page 396 - Fort Worth City Budget 2019

Internal Service Fund Reserve Policy

Non-Insurance Funds

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 Working Capital 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.

XI. Authority over Reserves

The City Council may authorize the use of Reserves. The Department of Financial
Management Services and the Performance and Budget Office will regularly report
both current and projected Reserve levels to the City Manager and City Council.

3 | P a g e

396