Page 282 - Microsoft Word - FY 2020 Adopted Budget Document

Appendices

STATEMENT OF FINANCIAL PRINCIPLES (CONTINUED)

Investments

Investments shall be made in conformance with the City's Investment Policy, with the primary objectives of:

 Safety – preservation of capital in the investment portfolio;
 Liquidity – portfolio remain sufficiently liquid to meet operating requirements;
 Yield – goal of rate of return of 102% of U.S. treasury curve at average maturity.

Grants

All grants and other federal and state funds shall be managed to comply with the laws, regulations, and guidance of the
grantor, and all gifts and donations shall be managed and expended according to the wishes and instructions of the donor.

Tax Collection

The City shall encourage the Tax Assessor-Collector to follow an aggressive policy of collecting property tax revenues. An
average collection rate of at least 98% of current levy shall be maintained.

Self‐Insurance & Retirement Funds
All retirement and self-insurance funds will be examined annually to ensure that adequate balances are maintained. Unfunded
actuarial liabilities in a retirement program are to be amortized over a 25-year period or less. The self-insurance program for
workers’ compensation shall be funded at a 75% confidence level, and the APFA self-insurance program shall be funded at a
50% confidence level.

Reserves

 The City’s working capital reserve in the General Fund shall be maintained at a minimum level of 8.33% (1/12 ) of annual
th
General Fund expenditures.

 The City’s General Fund unreserved ending balance may only be used for one-time purchases such as capital
equipment.

 The total General Fund balance shall be maintained at a minimum of 15% of annual General Fund expenditures.

 The fund balance in the debt service fund shall be maintained at a minimum level of 4.0% of annual debt service
expenditures.

2020 Adopted Budget and Business Plan 269 City of Arlington, Texas