Page 75 - Fort Worth City Budget 2019

General Fund

General Fund Statement

FUND PURPOSE AND GOALS

The General Fund is the largest fund within the City. The fund has the largest amount of revenue in the overall
city budget.

In accordance with the city's Financial Management Policy Statements (FMPS) with regard to a reliable, equitable
and diversified revenue stream, the General Fund revenues include property tax, sales tax, operating transfers,
charges for service, license and permit fees, fines forfeitures and special assessment, miscellaneous revenues such
as intergovernmental revenue, use of money and property, and other revenue. These revenues are used to finance
city departments that provide basic services. There are several other funds in the City of Fort Worth; however,
most activities that are supported by tax dollars are included in the General Fund and Debt Service Fund.

The city’s property tax generates the highest percentage of General Fund revenue. Property taxes are levied on
both real estate and personal property, according to the property’s valuation and the tax rate. For the third
consecutive year, the city lowered the tax rate. In FY2019, the city was able to lower the property tax rate to
$0.7850 per $100 of assessed valuation from $0.8050 per $100 of assessed valuation. Approximately $0.6300, or
80.25%, of that property tax rate funds General Fund operating expenditures, such as supplies and contracts, and
approximately $0.1550, or 19.75%, goes to debt service to pay the principal and interest on capital projects. Sales
tax, the second largest revenue source for the city, achieved new record highs throughout much of the FY2018
and the trend is positioned to carry through FY2019.

General debt service is the city’s obligation to pay the principal and interest on all bonds and other debt
instruments according to a payment schedule. It is funded from taxes levied by the city and is estimated to be
$97,425,882. Property tax revenues associated with debt service are deposited directly in the General Debt
Service Fund.

General Fund departments provide primary services directly to the public, as well as support services to other city
departments. In accordance with the FMPS, the city's Performance and Budget Department determines annually
the administrative service charges due to the General Fund. These charges are then budgeted accordingly in all
other funds.

The City also makes a concerted effort to maintain the General Fund’s unassigned fund balance at 10.0% of current
year, with a goal of 16.67%, of regular ongoing operating expenditures. During the course of the year the Finance
staff closely monitors the condition of the General Fund and all other city funds, and a financial forecast report is
prepared annually that evaluates revenues and expenditures, as well as performance indicators. The report
discusses trends affecting the city, as well as critical issues. The General Fund budget supports 4,980.325 full-time
equivalent positions and 19 operating departments (excluding Non-Departmental and four appointed officials
offices). Each department, listed alphabetically in the General Fund section, has a primary focus.

75