Page 19 - City of Fort Worth Budget Book

Processes and Policies Fund Structure

Purpose
The City’s accounts are organized based on funds and account groups, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts
comprised of assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate.

Governmental Fund Types
Governmental funds are used to account for the majority of the City’s activities and are comprised of the general,
general debt, and special revenue funds.
General Fund:

The General Fund is the primary operating fund of the City. It is used to account for all financial resources except
for those required to be accounted for in another fund. The primary revenue sources are non-exchange revenues
such as taxes for which the City accounts on a modified accrual basis.

The General Fund is first subdivided into individual departments to account for functional and program activities.
The departments may be further divided into divisions to account for greater detail. For example: the Police
Department is the parent department to the Police Traffic Division.
General Debt Service Fund:

The Debt Service Fund is used to account for principal and interest payments for the city’s long-term, tax-
supported debt.
Special Revenue Funds:

Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted
to expenditures for specified purposes.

Proprietary Fund Types
Proprietary funds are used when the city charges customers for services it provides to recover the costs of
providing the services. This group includes both enterprise and internal service funds.

Enterprise Funds:
Enterprise funds are used to account for operations that are financed and operated as private businesses. The
goal of the city is that the costs (expenses, including depreciation) of providing the service are recovered through
user charges. The primary customers are outside entities. For example: a homeowner who receives water
service. The City of Fort Worth has five enterprise funds, two of which are considered major funds.

The Water Fund contains three departments, water, sewer and reclamation water. This fund is responsible for all
the water and sewer services to the City and to 33 surrounding communities. These departments also repair and
replace water and sewer lines that have broken or are old and in need of replacing.

The Stormwater Utility Fund plans and executes the City’s response to flood conditions and how to mitigate
flooding in the City. This department maintains the existing system of pipes and channels and improves drainage
and reduces erosion through construction projects. It also warns the public about flooding and erosion hazards
and reviews developments for compliance with City stormwater standards.
Internal Service Funds:

Internal service funds are used to account for operations that are operated as private businesses, but the primary
customers are internal departments. The City of Fort Worth has five internal service funds.

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