HomeMy WebLinkAboutIR 9132 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9132
To the Mayor and Members of the City Council October 20, 2009
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SUBJECT: FINANCIAL MANAGEMENT POLICY STATEMENTS
The City of Fort Worth is accountable to its citizenry for the appropriate use of public funds. Municipal
resources must be wisely used to ensure adequate funding for the services, public facilities and
infrastructure necessary to meet the community's immediate and long-term needs. The Financial
Management Policy Statements {FMPS} serve as a framework to achieve this fiscal stability in meeting the
City's goals and objectives.
The FMPS were initially adopted by the City Council on January 15, 1994. Pursuant to the State's Public
Funds Investment Act, the City Council is required to take formal action annually stating that the City's
investment policy and related strategy have been reviewed and any changes properly recorded. As a
result, the FMPS are periodically updated with revisions and refinements regarding investments and other
fiscal policies as deemed necessary, and presented to City Council on at least an annual basis for
adoption. The latest revision to the FMPS was on July 21, 2009 when City Council amended the FMPS by
revising the use of revenues generated from gas well development leases as reflected and approved by
M&C G-16632.
An M&C regarding current changes to FMPS is tentatively scheduled for Council's consideration on
October 27` . This M&C and accompanying draft document will recommend several changes to the FMPS
as summarized below:
The Revenues from Gas Well Development Lease section will be slightly amended for enhanced
clarification on the use of such funds,
• The DFW Car Rental Revenue Sharing section will be modified to reflect the dedication of this revenue
to facility improvements of the Fort Worth Convention Center and the Will Rogers Memorial Center,
• The Culture and Tourism Fund Balance Undesignated Fund Balance requirement will be increased to
20 percent,
• The Water and Sewer Payment-in-Lieu-of-Taxes section will be added to be consistent with the Fiscal
Year 2010 Adopted Budget, and
The Retirement System chapter will be expanded to include healthcare for eligible employees, retirees,
and beneficiaries.
Staff will be presenting the current revision of the FMPS, including the changes noted above, to the Audit
& Finance Advisory Committee on {October 22d. Based on the Audit & Finance Advisory Committee's
recommendation, the FMPS will subsequently be forwarded to the City Council for approval on {October
27th
It should be noted that City staff is scheduled to have further discussions with the City Council on budget �
priorities, and related goals and objectives in the eery near future. Additionally, an outside consultant has
i been identified to assist the Financial Management Seies Department and citywide departments in
developing detailed policies and procedures for the City's fiscal operations. The FMPS will provide the i
framework for this work effort.
Should you have any questions regarding any of the above-mentioned, please do not hesitate to contact
Lena H. Ellis at extension 3517.
P.E.
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS