Page 38 - City of Fort Worth Budget Book

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 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 ensure 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
is adopted in September and shall be effective for a fiscal period beginning October 1st and ending September
30th.
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 16.7 %

Special Revenue Funds: (Fund Balance)
Alliance Maintenance Facility 16.7 %
Community Tree Planting 16.7 %
Crime Control and Prevention
District 16.7 %
Culture/Tourism 16.7 %
Culture and Tourism 2% CY Tax 16.7 %
Hotel Occupancy 2% Venue Tax 16.7 %
Emergency Medical Services 16.7 %
DFW Revenue Sharing 16.7 %
Culture and Tourism Proj Fin
Zone 16.7 %
Arena Operating 16.7 %
Economic Incentives 16.7 %
Environmental Protection 16.7 %
Municipal Golf 16.7 %
Special Donation 16.7 %

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