Page 399 - Fort Worth City Budget 2019

Special Revenue Fund

Reserve Policy

VI. Policy:

Reserve Levels - The City will maintain the following minimum Fund Balance
amounts, with Fund Balance for purposes of this policy being the combined total of
the Assigned and Restricted Fund Balance classifications:

1. A minimum Fund Balance in Special Revenue Funds equivalent to
two months (16.67%) of regular, on-going Operating Expenditures
(including operating transfers out). This calculation shall not include
Non-Recurring Items.

2. The City acknowledges that initially, not all funds will meet the
minimum requirement for Fund Balance 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 fiscal year-end
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financial 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 expenditures 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 Reserve targets will generally come from
excess revenues over expenditures or one-time revenues.

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