M&C Review

COUNCIL ACTION:  Approved on 9/11/2018 

DATE: 9/11/2018 REFERENCE NO.: **G-19360 LOG NAME: 13FY2019FMPS
SUBJECT:   Adopt Financial Management Policy Statements for Fiscal Year 2019 (ALL COUNCIL DISTRICTS)


It is recommended that the City Council adopt the attached Financial Management Policy Statements for Fiscal Year 2019.


The Financial Management Policy Statements (FMPS) were initially adopted by the Mayor and City Council on January 15, 1994 and provide the foundation for financial management within the City of Fort Worth.  Adoption of the FMPS comes under the auspices of the City's Charter, which outlines the need to adopt policies to administer and safeguard the City's financial resources.  

The FMPS contains sections which provide policy level guidance on such topics as revenues, expenditures, reserves, debt management, interfund loans, investments, grants, accounting, auditing, financial reporting and internal controls.  Each topic comprises its own section of the overall policy document and is reviewed and recommended for update from time to time.  The annual adoption of the revised FMPS is intended to replace/supersede all previously adopted financial policies.  

The proposed changes to the FMPS for Fiscal Year 2019 include the following:

        Revenue Receipting Policy:

                - Added language requiring the testing of cash provided for payment by customers

        Debt Policy:

                - Changed the average life of revenue bonds from 12.0 years to 17-18 years to more closely reflect the life of the asset

                - Added Kroll as an approved rating agency

                - Updated to reflect changes in federal laws

                - Added description of Tax Notes

        Reserve Policies

                - Debt Service Funds - clarified applicability of reserve calculations for governmental debt service fund and proprietary debt service funds

                - Water Fund - moved minimum cash on hand from 62 days to 100 days; changed maximum from 250 days to 150 days

                - Proprietary Funds - added clarifying language on calculations for working capital, unrestricted net position, and days cash on hand

        Fiscal Monitoring Policies

                - Monthly reports - eliminated the production and publication of monthly reports; provide data on an ad hoc basis

                - Capital project reports - provide data on an ad hoc basis

        Donation Policy

                - Changed requirement of donation resulting in Mayor and Council Communication to only those items creating a capital asset

        Accounting, Auditing and Financial Reporting

                - Added language supporting participation in the Government Finance Officers Association's Certificate of Achievement for Excellence in Financial Reporting Program

        Procurement (Purchasing) Card

                - Removed from FMPS, to be part of the purchasing policy

All Policies had grammatical changes and updates including formatting.  Red line versions of all of the policies are attached to this Mayor and Council Communication.  

This M&C does not request approval of a contract with a business entity.


The Director of Finance certifies that the Financial Management Policy Statements provide the foundation for solid fiscal management.

    Fund Department
Account Project
Program Activity Budget
Reference #
(Chartfield 2)

    Fund Department
Account Project
Program Activity Budget
Reference #
(Chartfield 2)

Submitted for City Manager's Office by:
Susan Alanis (8180)
Originating Department Head:
Aaron Bovos (8517)
Additional Information Contact:

  1 IntroSection - RED LINE.pdf
  10 Section-XI-Fiscal-Monitoring - RED LINE.pdf
  11 Section XIII Accounting Auditing and Financial Reporting - RED LINE.pdf
  12 Section-XIV-RetirementSystem - RED LINE.pdf
  13 Section-XV-Internal-Controls - RED LINE.pdf
  14 Section-XVI-E-Commerce - RED LINE.pdf
  15 Glossary.pdf
  15 XIV Donations-RED LINE.pdf
  2 Section-I-Revenue - RED LINE.pdf
  2a Gas Policy Statement - RED LINE.pdf
  2b Revenue Receipting Policy - RED LINE.pdf
  2c Water Sewer Payments Policy - RED LINE.pdf
  3 Section-II-Expenditures - RED LINE.pdf
  4a Capital-Projects-Fund-Reserve-Policy - RED LINE.pdf
  4b General-Fund-and-DebtService-Fund-Reserve-Policy - RED LINE.pdf
  4c Enterprise-Fund-Reserve-Policy - RED LINE.pdf
  4d InternalService-Insurance-Fund-Reserve-Policy - RED LINE.pdf
  4e InternalService-Non-Insurance-Fund-Reserve-Policy - RED LINE.pdf
  4f Special-Revenue-Fund-Reserve-Policy - RED LINE.pdf
  5 Section-IV-Capital-Expenditure - RED LINE.pdf
  5aCapital Assets - RED LINE.pdf
  6 Section-V-Debt - RED LINE.pdf
  6a debt-monitoring - RED LINE.pdf
  7 Section-VI-Interfund-Loans - RED LINE.pdf
  8a Section-VII-Investments_Cash Mgmt - RED LINE.pdf
  9 Section-IX-Grants - RED LINE.pdf