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F. Spending Priority of Capital Project Funding Sources (excluding grants)

Many capital projects that are administered by the City of Fort Worth have
multiple funding sources, which can include internal and external sources.
Spend funding in the following order: (e.g., Priority One, then Priority Two,
then Priority Three, and lastly Priority Four)

Priority One: Proceeds from any type of debt issuance, including tax notes,
bonds, loans, etc. Use proceeds from oldest to newest (i.e., 2002 GO Bond
proceeds before 2014 Bond proceeds, or 2014 before 2018 proceeds). Per IRS
regulations, 85% of all Bond proceeds must be spent within three years. Failure
to spend Bond proceeds timely could result in the bonds sold being deemed
taxable.

Priority Two: Source of funds that include projects where a source external to
the City is funding a portion or all of the project in the order listed below:
1. Intergovernmental Agreements (Once verified as Non-Grant)
2. Contribution from an outside source (e.g., cash donation)
3. Developer contributions

Priority Three: Internally committed funding sources. Internal commitments
exist due to an action taken by the Mayor and Council (M&C), such as the
adoption of the Financial Management Policy Statements which designate the
use of specific revenues for specific purposes, e.g., DFW Airport Sharing
Revenue to the Culture and Tourism activity, Gas Well Lease income for
specific purposes, or Transfers-In.

Priority Four: Other funding sources appropriated by Budget that do not fall
into the three above categories. These funds should always be spent last due to
the ability to re-program any remaining funds when a project is completed to
other identified needs within the City.

G. Spending Priority of Grant Related Capital Projects

The funding priority identified above for non-grant capital projects should
generally be followed for grant funded projects, as long as the priorities and
methodologies are consistent with the grant requirements. Where the grant
requirements differ from the above identified City priorities, the grant priorities
should prevail.

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