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HomeMy WebLinkAboutOrdinance 22116-03-2016 ORDINANCE NO.22116-03-2016 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE INFORMATION TECHNOLOGY SYSTEMS FUND IN THE AMOUNT OF $210,000.00, FROM $124,000.00 IN HIGHER-THAN- BUDGETED COMPUTING SERVICE FEE REVENUES AND FROM $86,000.00 IN USE OF THE FUND'S UNRESTRICTED NET POSITION, FOR THE PURPOSE OF OFFSETTING EXPENSES THAT ARE OVER BUDGET AND FACILITATING CLOSEOUT OF FISCAL YEAR 2015 BUDGET; PROVIDING FOR A SEVERABILITY CLAUSE;MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH;AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2014-2015 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Information Technology Systems Fund in the amount of$210,000.00, from $124,000.00 in higher-than- budgeted computer service fee revenues and $86,000.00 in use of the Information Technology Systems Fund's unaudited, unrestricted net position for the purpose of offsetting expenses that are over budget and facilitating closeout of Fiscal Year 2015. SECTION 2. That should any portion, section or part of a section of this ordnance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance No. 21457-09-2014 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED A TO FORM AND LEGALITY: —A�W, �v Denis C. cElroy, istant City Attorney ary J. ser,' ity cretary ADOPTED AND EFFECTIVE:March 22,2016 Ordinance No.22116-03-2016 Page 1 of 1 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 3/22/2016 - Ordinance No. 22115-03-2016, 22116-03-2016,; 22117-03-2016 & 22118-03-2016 DATE: Tuesday, March 22, 2016 REFERENCE NO.: **G-18686 LOG NAME: 13FY2015 CLOSING SUBJECT: Adopt Supplemental Appropriation Ordinances in the Amount of$206,000.00 in the General Fund, in the Amount of$632,000.00 in the Solid Waste Fund, in the Amount of$99,000.00 in the Municipal Airports Fund and in the Amount of$210,000.00 in the Information Technology Systems Fund for Fiscal Year 2015 Year End Budget Adjustments from Available Revenues and Decreasing Unaudited, Unassigned Fund Balance/Net Position as Noted (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached supplemental appropriation ordinance increasing estimated receipts and appropriations for Fiscal Year 2015 by $206,000.00 in the General Fund, from use of fund balance and decreasing the General Fund unaudited, unassigned fund balance by the same amount, to offset General Fund departments that are over budget; 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations for Fiscal Year 2015 by $632,000.00 in the Solid Waste Fund, from available, higher-than-budgeted residential billing revenues, to offset expenses that are over budget; 3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations for Fiscal Year 2015 by $99,000.00 in the Municipal Airports Fund, from available, higher-than-budgeted landing fee revenues, to offset expenses that are over budget; and 4. Adopt the attached supplemental appropriation ordinance increasing estimated receipts and appropriations for Fiscal Year 2015 by $210,000.00 in the Information Technology Systems Fund, from $124,000.00 in available, higher-than-budgeted computing service fees and from $86,000 use of net position and decreasing the Information Technology Systems Fund unaudited, unrestricted net position by $86,000.00, to offset expenses that are over budget. DISCUSSION: The City's annual operating budget is formally enacted into law by City Council action adopting an appropriation ordinance that establishes spending limits for each department's and fund's operation. The purpose of this Mayor and Council Communication (M&C) is to provide the City Council with the final balanced budget, per the audit, for the year ending September 30, 2015. This process begins with the recording of all expenditures from October 1, 2014 to September 30, 2015. As a result of the external auditors' review, additional expenditure entries are either posted or re-classed, resulting in changes to departments' final total expenditures. All departments' final expenditures are then compared to the budgeted amount approved in the original appropriation ordinance as adjusted for supplemental Logname: 13FY2015 CLOSING Page 1 of 3 appropriations approved throughout the year. The amounts over budget must be appropriated by action of the City Council in accordance with the City Charter (Chapter X, Section 5, Expenditure Only Pursuant to Appropriations). Approval of this M&C appropriating those amounts represents the final step before the audit can be completed and the Comprehensive Annual Financial Report published. Below is a brief explanation of the activity resulting in departments or funds exceeding their Fiscal Year 2015 Budget as of March 14, 2016. General Fund: General Fund Department Additional Appropriations Fire _ $ 206,000.00 Total - General Fund $ 206,000.00 The Fire Department overage is primarily due to higher than anticipated outside fleet repair and maintenance costs during the year. Overall, the Fiscal Year 2015 General Fund had a budgetary contribution to fund balance of$13 million dollars. Other Funds: Fund Additional Appropriations Solid Waste Fund $ 632,000.00 Municipal Airports Fund $ 99,000.00 Information Systems Fund I $ 210,000.00 Solid Waste Fund expenses exceeded budget as a result of increases in the residential collections contract. Those expenses are offset by increases in residential billing receipts that came in at a level that is higher than what was budgeted. The Municipal Airports Fund expenses exceeded budget due mainly to the contractual Agreement with Alliance Air Services to manage Alliance Airport. Under the contract, Alliance Air Services is compensated based on revenues generated at the facility. Landing fee revenues at Alliance Airport exceeded budgeted amounts, meaning Alliance Air Services is due additional compensation, which results in a higher-than-budgeted cost for the fund. Nevertheless, a contribution to Net Position occurred in Fiscal Year 2015 in the amount of$51.2 million dollars. Information Technology Systems Fund costs are higher than budgeted due primarily to phase one in the replacement of the City's network and telephone systems (M&C C-27346). That M&C indicated that the replacement would be funded, in part, from departmental savings. Those savings were not ultimately realized due to unanticipated increases in other contractual expenses of the fund. The additional costs are partially offset by increases in computing services fees in the amount of$124,000.00, with the remainder coming from use of net position. This M&C does not request approval of a contract with a business entity. Logname: 13FY2015 CLOSING Page 2 of 3 FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon the approval of the above recommendations and adoption of the attached supplemental appropriation ordinances, funds will be available in the current operating budgets, as appropriated, of the General Fund, the Solid Waste Fund, the Municipal Airports Fund and the Information Technology Systems Fund. FUND IDENTIFIERS (FIDs): TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) 1 10100 0368020 5430103 $206,000.0 0 54001 0239901 4443002 $632,000.00 2 54001 0239902 5330201 $632,000.00 3 55001 0551301 4405502 $99,000.00 3 55001 0551301 5330201 $99,000.00 60105 0048002 4404001 $85,000.00 60105 0046020 4404004 $39,000.00 60105 0041000 5900010 $210,000.00 FROM Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year (Chartfield 2) CERTIFICATIONS: Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Aaron Bovos (8517) Additional Information Contact: Loraine Coleman (8542) Logname: 13FY2015 CLOSING Page 3 of 3