Page 414 - 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 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 expenses. 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 unrestricted net position
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 Proprietary
Fund Reserves, how the Reserve will be funded, and the conditions under which the
Reserves may be used. This policy is intended to supplement, but not supersede,
provisions of ordinances of the City governing the issuance or incurrence of bonds
or other obligations secured in whole or in part by revenues or credited to a
Proprietary Fund.

III. Applicability and Scope:

This policy shall apply to all Proprietary Funds 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

Page 414 of 623