Page 385 - FortWorthFY22AdoptedBudget

VI. Monitoring Performance:

A. For purposes of this calculation, Working Capital will include long-term
investments that can be liquidated within five business days. 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 expenses 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 the 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.

VII. Conditions for Use of Reserves:

The City intends to limit use of Proprietary Reserves to address unanticipated, non-
recurring needs. Reserves shall not be applied to recurring annual operating expenses.
Reserves may, however, be used to allow time for the City to restructure its operations
deliberately (as might be required in an economic downturn), but such use will only
take place in the context of an adopted long-term plan.

Page 385 of 581