Page 420 - FortWorthFY23AdoptedBudget

C. Capital Expenditure Financing

The City recognizes that there are three basic methods of financing its capital
requirements. It can budget the funds from current revenues (pay-go funding);
it can take the funds from unassigned fund balance, assigned fund balance, or
Net Position as allowed by the Unassigned/Assigned Fund Balance or Net
Position Policy Statements; or it can borrow money through the issuance of
debt. Debt financing includes general obligation bonds, revenue bonds,
certificates of obligation, lease/purchase agreements, certificates of
participation, commercial paper, tax notes, and other obligations permitted to
be issued or incurred under Texas law. Guidelines for assuming debt are set
forth in the Debt Policy Statements.

D. Lake Worth Expenditures

Proceeds from the sale of Lake Worth leases shall be escrowed and designated
for water and wastewater improvements within the area of the City of Fort
Worth surrounding and adjoining Lake Worth.

E. Surplus Bond Funds (M&C G-14441, July 27, 2004)

A “Restricted Residual Account” shall be established to record and manage
surplus project funds. Surplus project funds may become available after the
completion of a specific, voter- approved bond project or may result when a
bond project is modified or eliminated without being simultaneously replaced
by another eligible project.

Funds in the Restricted Residual Account may be used for projects consistent
with the voted purpose of the bonds to:

• Finance cost overruns on bond projects within the same bond
proposition;
• Reduce outstanding debt at the end of the bond program; and
• Fund newly identified projects within the voted purposes of an
approved bond proposition only after all voter-approved projects
/categories within the same proposition are substantially complete. A
project would be considered substantially complete when design has
been fully completed, construction is substantially underway, and staff
has prepared cost projections that include ample contingencies to
complete the project in the event unforeseen costs should arise.

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