Page 379 - FortWorthFY22AdoptedBudget

VII. Conditions for Use of Reserves:

General Fund and Special Revenue Funds

It is the intent of the City to limit the use of General Fund and Special Revenue Fund
Reserves to address unanticipated, non-recurring needs. Reserves shall not be applied
to recurring annual operating expenditures. Reserves may, however, be used to allow
time for the City to restructure its operations deliberately manner (as might be required
in an economic downturn), but such use will only take place in the context of an
adopted long-term plan.

Debt Service Funds

The City intends to limit the use of Debt Service Reserves to address the repayment of
any outstanding debt.

VIII. Excess of Reserves:

In the event Reserves exceed the minimum balance requirements, at the end of each
fiscal year, any excess Reserves may be used in the following ways:

General Fund and Special Revenue Funds

1. Fund accrued liabilities, including but not limited to debt service, pension,
and other post-employment benefits as directed and approved within the
long-term financial plan and the annual budget ordinance. Priority will be
given to those items that relieve budget or financial operating pressure in
future periods;

2. Appropriated to lower the amount of bonds or increase the pay-as-you-go
contributions needed to fund capital projects in the City’s Capital
Improvement Plan;

3. One-time expenditures that do not increase recurring operating costs that
cannot be funded through current revenues. Emphasis will be placed on one-
time uses that reduce future operating costs; or

4. Start-up expenditures for new programs provided that such action is
approved by the City Council and is considered in the context of multi-year
projections of revenue and expenditures as prepared by the Financial
Management Services department.

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