Page 400 - Fort Worth City Budget 2019

Special Revenue Fund

Reserve Policy

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
of providing government services including unanticipated reductions in revenues or
unplanned increases in expenditures / 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 special revenue fund Reserves to address
unanticipated, Non-Recurring needs. Reserves shall not normally be applied to
recurring annual operating expenditures. 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. Appropriated to lower the amount of bonds or increase the pay-as-
you-go contributions needed to fund capital projects in the City’s
Capital Improvement Plan;

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