Page 378 - FortWorthFY22AdoptedBudget

Special Revenue Funds

D. Reserve Levels – The City will maintain a combined Restricted and Assigned
Fund Balances in Special Revenue Funds equivalent to two months (16.67%) of
the next fiscal year budgeted operating expenditures.

General Debt Service Fund

E. Reserve Levels – The City will maintain a level of Restricted, Committed, and
Assigned Fund Balances in each governmental Debt Service Fund equivalent to
three months (25%) of the highest projected debt service (principal and interest)
over the succeeding debt service schedule. Amounts used in this calculation shall
not include any amounts allocated for other purposes by the City Council.

VI. Monitoring Performance:

A. The City will measure its compliance with this policy on an annual basis as of
September 30 each year or as soon as practical after final fiscal year-end financial
th
information becomes available. During the fiscal year, the Financial Management
Services and Planning & Data Analytics departments shall closely monitor the City’s
revenues and expenditures to ensure Reserves are not used beyond any planned
usage.

B. If, based on staff’s analysis and forecasting, the target level of Reserves is not met at
fiscal year-end or is not likely to be met at any point within a five-year time
horizon, then during the annual budget process a plan to replenish the Reserve
levels will be developed by collaboration among affected departments and
Financial Management Services and Planning & Data Analytics departments based
on the requirements outlined in this policy.

C. Funding the Reserve – Funding of Reserve targets will generally come from excess
revenues over expenditures or one-time revenues, non-recurring revenues, and
budget surplus. Year-end surpluses are an appropriate source for replenishing
fund balance.

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.

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