Page 383 - FortWorthFY22AdoptedBudget

V. Policy:

Enterprise Funds

Reserve Levels - The City will maintain the following goal reserve levels in each
Enterprise Fund, consistent with State law and the terms of ordinances pursuant to
which obligations have been issued or incurred that are secured in whole or in part
by revenues held in or credited to an Enterprise Fund:

1. A goal of Working Capital in Enterprise Funds equivalent to
three months (25%) of the next fiscal year budgeted operating
expenses, excluding intrafund transfers out to funds within the
same reporting group (e.g. transfer out from Water and Sewer
Operating Fund to its Capital Projects Fund or Debt Service
Fund). This calculation shall be performed against the operating
fund only.

2. A Reserve of 100 Days cash on hand with a goal of 150 Days
Cash on Hand. This calculation shall be performed against the
operating fund only on Generally Accepted Accounting
Principles (GAAP - Full Accrual) basis.

3. The City’s goal is that no Enterprise Fund shall have a negative
Unrestricted Net Position. This calculation shall be performed
by using all of the funds for the respective reporting group.

4. In addition, the City acknowledges that initially, not all funds
will meet the minimum requirement for Working Capital
and/or Days Cash on Hand outlined in this policy. A fund will
be considered compliant with this policy as long as the financial
position shows continuous improvement each fiscal year.

Page 383 of 581