Page 409 - FortWorthFY23AdoptedBudget

I. Authority:

The Fort Worth City Council is responsible for legislation, policy formulation, and
overall direction setting of the government. This includes the approval of financial
policies that establish and direct the operations of the City of Fort Worth. The City
Manager and Assistant City Managers are responsible for carrying out the policy
directives of the City Council and managing the day-to-day operations of the executive
departments, including the Department of Financial Management Services. This
policy shall be administered on behalf of the City Manager and the Assistant City
Managers by the Chief Financial Officer/Director of Finance.

II. Purpose:

The City desires to maintain a prudent level of financial resources to guard its
stakeholders against service disruption in the event of unexpected temporary revenue
shortfalls or unpredicted one-time expenditures. In addition, this policy is intended
to document the appropriate Reserve level to protect the City’s creditworthiness
and provide adequate cash flow based upon the traditional operating cycle. The
Government Finance Officers Association’s (GFOA) best practice for reserves
recommend, at a minimum, regardless of size, maintain an unassigned fund balance
of no less than two months of regular operating revenues or operating expenses.
Reserves are accumulated and maintained to provide stability and flexibility to
respond to unexpected adversity and/or opportunities and to minimize the costs
associated with short-term cash borrowing.

This policy establishes the amounts the City will strive to maintain in its General
Fund, Special Revenue Funds, and General Debt Service Funds Reserves, how the
Reserves will be funded, and the conditions under which the Reserves may be used.

III. Applicability and Scope:

This policy shall apply to the General Fund, all Special Revenue Funds, and the
General Debt Service Fund under the budgetary and fiscal control of the City Manager
and the City Council.

IV. Related Documents and References:

A. Operating and Capital Budget Policy
B. Long-Term Financial Planning Policy
C. Capital Asset Investment and Management Policy
D. Debt Management Policy

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