Page 377 - FortWorthFY22AdoptedBudget

V. Policy:

General Fund

A. Reserve Levels - The City will maintain an Unassigned Fund Balance in the
General Fund equivalent to two months (16.67 %) of the next fiscal year budgeted
operating expenditures.

B. Committed Fund Balance – The City Council maintains the City’s highest level of
decision-making authority and the formal action that is required to be taken to
establish, modify, or rescind a fund balance commitment is an item placed on the
City Council’s agenda and approved at a City Council meeting. The action must
either approve or rescind, as applicable, prior to the last day of the fiscal year for
which the commitment is made. The amount subject to the constraint may be
determined in the subsequent period.

C. Assigned Fund Balance – The City Council, through adoption of this policy, has
authorized the City Manager or his/her designee and the Chief Financial
Officer/Director of Finance to jointly designate or commit assigned fund balances
without further City Council approval. It should be noted that this authority only
gives the ability to designate future “intended” uses of fund balance that are in
excess of nonspendable, restricted, and committed amounts, and the minimum
required reserve. It does not vest additional spending authority in the City
Manager or his/her designee or Chief Financial Officer/Director of Finance.
Subsequent appropriations of fund balance would continue to require City Council
approval.

Spending Priorities - When expenditures are incurred for the purposes for which
both restricted and unrestricted fund balance are available, the City will consider
restricted funds to be spent before unrestricted funds. Further, if there is an
expenditure incurred for purposes for which committed, assigned, or unassigned
fund balance classifications could be used, and the City will consider committed
funds to be spent before assigned funds, and will consider assigned funds to be spent
before unassigned funds.

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