Page 398 - Fort Worth City Budget 2019

Special Revenue Fund

Reserve Policy

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 the 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 expenditures. 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. Reserves 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 Special
Revenue Funds as Reserves, how the Reserves will be funded, and the conditions
under which Reserves may be used.

III. Applicability and Scope:

This policy shall apply to all Special Revenue Funds under the budgetary and fiscal
control of the City Manager and the City Council except the Crime Control and
Prevention District Fund.

This policy is applicable to Governmental Funds, and is intended to supplement, not
supersede, provisions of the City governing the issuance of bonds or other obligations
secured in whole or in part by revenues held in or credited to a Governmental Fund.

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

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