Page 386 - FortWorthFY22AdoptedBudget

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:

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 expenses 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 expenses 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 expenses as prepared
by the Department of Finance.

IX. Authority over Reserves:

The City Council may authorize the use of Reserves. The Financial Management
Services and Planning & Data Analytics departments will regularly report both
current and projected Reserve levels to the City Manager and City Council.

X. Quality Control and Quality Assurance:

It is the responsibility of the Chief Financial Officer/Director of Finance to ensure the
presence of procedures that provide sufficient guidance to affected City personnel
to fulfill the intent of this policy. This policy will be reviewed at least annually and
updated on an as-needed basis.

XI. Basis:
Generally Accepted Accounting Principles (GAAP - Full Accrual) basis is use for
calculating the reserve level for Proprietary Funds Reserve.

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