Page 384 - FortWorthFY22AdoptedBudget

Internal Service Funds

Reserve Levels for Internal Service Insurance Funds - The City will maintain the
following minimum reserve levels in all Internal Service Insurance Funds:

1. A goal of Working Capital in Insurance Funds 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 using the operating
fund only.

2. No Insurance Fund shall have a negative Unrestricted Net
Position. This calculation shall be performed by using all of the
funds of the respective reporting group of the specific insurance
related internal service fund.

3. In addition, the City acknowledges that initially, not all funds
will meet the minimum requirement for Working Capital
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.

Reserve Levels for Non-Insurance Internal Service Funds - The City will maintain the
following minimum reserve levels in all Internal Service Insurance Funds:

1. A goal of Working Capital in Non-Insurance Internal Service
Funds equivalent to ten percent (10%) 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
using the operating fund only.

2. No Internal Service Fund shall have a negative Unrestricted Net
Position. This calculation shall be performed by using all of the
funds for the respective reporting group funds of the specific
non-insurance related internal service fund.

3. In addition, the City acknowledges that initially, not all funds
will meet the minimum requirement for Working Capital
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.

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