Page 403 - Fort Worth City Budget 2019

Capital Expenditures and

Improvements Policy

City shall replace these assets according to the aforementioned schedule.

C. Capital Expenditure Financing

The City recognizes that there are three basic methods of financing its capital
requirements. It can budget the funds from current revenues (pay-go funding); it
can take the funds from unassigned fund balance, assigned fund balance, or Net
Position as allowed by the Unassigned/Assigned Fund Balance or Net Position
Policy Statements; or it can borrow money through the issuance of debt.
Debt financing includes general obligation bonds, revenue bonds, certificates of
obligation, lease/purchase agreements, certificates of participation, commercial
paper, tax notes, and other obligations permitted to be issued or incurred under
Texas law. Guidelines for assuming debt are set forth in the Debt Policy
Statements.

D. Lake Worth Infrastructure Fund

Proceeds from the sale of Lake Worth leases shall be escrowed and designated
for water and wastewater improvements within the area of the City of Fort Worth
surrounding and adjoining Lake Worth.

E. Surplus Bond Funds (M&C G-14441, July 27, 2004)

A “Restricted Residual Account” shall be established to record and manage
surplus project funds. Surplus project funds may become available after the
completion of a specific, voter- approved bond project or may result when a bond
project is modified or eliminated without being simultaneously replaced by
another eligible project.

Funds in the Restricted Residual Account may be used for projects consistent
with the voted purpose of the bonds to:

 Finance cost overruns on bond projects within the same bond
proposition;
 Reduce outstanding debt at the end of the bond program; and
 Fund newly identified projects within the voted purposes of an approved
bond proposition only after all voter-approved projects / categories
within the same proposition are substantially complete. A project would
be considered substantially complete when design has been fully
completed, construction is substantially underway, and staff has
prepared cost projections that include ample contingencies to complete
the project in the event unforeseen costs should arise.

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