Page 89 - FortWorthFY22AdoptedBudget

General Fund

General Fund Statement

FUND PURPOSE AND GOALS

The General Fund is the largest fund within the City and includes the highest revenue total in the overall city
budget.

Under the City's Financial Management Policy Statements (FMPS) and concerning a reliable, equitable, and
diversified revenue stream, General Fund revenues include property tax, sales tax, operating transfers, charges
for service, license and permit fees, fines, forfeitures and special assessments, and miscellaneous revenues such
as intergovernmental revenue, use of money and property, and other revenue. These revenues are used to finance
city departments that provide basic services. There are several other funds in the City of Fort Worth; however,
most activities that are supported by tax dollars are included in the General Fund and Debt Service Fund.

The City’s property tax generates the highest percentage of General Fund revenue. Property taxes are levied on
both real estate and personal property according to each property’s valuation and the tax rate. In FY2022, the city
is adopting a property tax rate of $0.7325 per $100 of assessed valuation, which is $0.015 lower than FY2021.
Approximately $0.5850, or 79.86%, of that property tax rate, funds General Fund operating expenditures, such as
supplies and contracts, and approximately $0.1475, or 20.14%, goes to debt service to pay the principal and
interest on capital projects. Sales tax, the second-largest revenue source for the city, performed better than
anticipated throughout much of FY2021, and is projected to be $8.2M over the established budget. Sales tax in
FY2022 is expected to return to more normal growth and be more stable than FY2020 or FY2021.

General debt service is the City’s obligation to pay the principal and interest on all bonds and other debt
instruments according to a payment schedule. It is funded through taxes levied by the City and is estimated to
total $120,022,221. Property tax revenues associated with debt service are deposited directly into the General
Debt Service Fund.

Departments funded by the General Fund provide primary services directly to the public and support services
provided to other city departments. Under the FMPS, the City's Planning & Data Analytics Department determines
the administrative service charges which are due to the General Fund annually. These charges are then budgeted
accordingly in all other funds.

The City also makes a concerted effort to maintain the General Fund’s unassigned fund balance at a minimum of
10.0% of the current year's regular ongoing operating expenditures, to maintain two months’ worth (16.67%) of
regular ongoing operating expenditures. During the year, the Finance staff closely monitors the condition of the
General Fund and all other city funds, and a financial forecast report is prepared annually that evaluates revenues,
expenditures, and performance indicators while simultaneously discussing trends and critical issues affecting the
City. The General Fund budget supports 5,269 authorized positions, 17 operating departments (these counts
exclude the Non-Departmental designation), and 4 appointed officials’ offices. Each department and office, listed
alphabetically in the General Fund section, has a primary focus.

Page 89 of 581