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Processes and Policies

Financial Policies

Note: This section addresses the City of Fort Worth’s major financial policies governing the budget process and
budget implementation. For more detailed information on City financial policies, please contact the City Financial
Management Services Department or see the Financial Management Policy Statements in the Supplemental
Information section.

The City of Fort Worth’s financial policies establish a foundation for the financial strength of the City government.
These policies guide the City Council and the city manager as they make decisions regarding resource allocations.

The financial condition of the City must be maintained at the highest level to ensure that resources are available
to meet the City’s ever-changing priorities. The following policies are related to the adoption and implementation
of the annual budget. They are designed to assure that the City maintains the highest credit rating possible from
all rating agencies.

Operating Budget

Per City charter, the City shall operate under an annual balanced budget whereby the sum of net revenues and
appropriated fund balance equals the expenditure appropriations. Revenue projections shall be set at realistic
and attainable levels, sufficiently conservative to avoid shortfalls, yet accurate enough to avoid a regular pattern
of setting tax rates that produce more revenue than is necessary. The City shall not develop budgets that include
operating deficits that require the use of one-time resources to cover recurring expenses. The City’s annual budget
shall be adopted by September 30, 2022 and shall be effective for a fiscal period beginning October 1, 2022 and
ending September 30, 2023.

Fund Balances

The City shall maintain a fund balance position that rating agencies deem adequate to meet the City’s needs and
challenges. Therefore, the City has adopted a policy that requires management to maintain fund
balances/working capital at the following levels:

General Fund: (Fund Balance)
General Fund 16.67%

General Debt Service Fund : (Fund Balance)
Debt Service Fund 25.00%

Special Revenue Funds: (Fund Balance)
Crime District 16.67%
Culture/Tourism 16.67%
Environmental 16.67%
Municipal Golf 16.67%

Enterprise Funds: (Working Capital)
Municipal Airport 25.00%
Municipal Parking 25.00%
Solid Waste 25.00%
Stormwater 25.00%

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