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HomeMy WebLinkAboutOrdinance 8996 ~~, ~~ ORDINANCE NO. ~/ { ~r AN ORDINANCE APPROPRIATING $552,929 FROM THE GENERAL FUND BALANCE AND $1,317,837 FROM THE BALANCES OF VARIOUS INDIVIDUAL DEPARTMENT FUNDS FOR THE PURPOSE OF TRANSFER- RING A TOTAL OF $1,870,766 TO GENERAL FUND DEPARTMENTS AND INDIVIDUALLY FUNDED DEPARTMENTS TO PROVIDE FUNDS FOR THESE DEPARTMENTS, WHICH FUNDS WERE ENCUMBERED TO FINANCE DEPARTMENTAL PROJECTS AND ACTIVITIES DURING THE 1982-1983 FISCAL YEAR; PROVIDING FOR A SUPPLEMENTAL APPROPRIATION OF $16,815 FOR THE PUBLIC LIBRARY TO CLOSE CERTAIN OUTSTAND- ING GRANTS; 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 $552,929 is hereby transferred from the General Fund fund balance and $1,317,837 is hereby transferred from the balances of various Enterprise and Internal Service Funds for the purpose of transferring a total of $1,870,766 in the following amounts to the following General Fund departments and individually funded depart- ments to provide funds to these departments, which funds were encumbered to finance departmental projects and activities during the 1982-1983 fiscal year: General Fund Mayor and Council $ 1,251 City Manager 284 Office of Management Services 592 Data Processing 12,157 Human Resources 810 City Secretary 470 Law 27 Finance 5,363 Personnel 3,995 Transportation & Public Works 277,176 City Services 1,564 Planning 305 Development 454 Public Events 679 Culture & Tourism 89,463 Police 38,199 Fire 26,423 Emergency Preparedness 8,093 Municipal Court 1,044 Public Health 43,272 Park & Recreation 14,692 Public Library 13,256 Non-departmental 13,360 ~,. - , .. - .. ~.. Equipment Services Fund 505,405 Parking Garage Fund 311 Water & Sewer Fund 705,288 Golf Fund 55,199 Airports Fund 724 Office Services Fund 99 Solid Waste Fund 50,811 The specific purposes of these transfers, and the amounts thereof, are set out more particularly in City of Fort Worth Mayor and Council Communication No. G-5863, dated December 22, 1983, a copy of which is attached hereto and incorporated herein. SECTION 2. That the sum of $16,815 be appropriated from the General Fund fund balance to the Public Library Department, such funds to be used to close certain outstanding grants. SECTION 3. Should any portion, section or .part of a section of this ordi- nance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 4. That this ordinance shall be cumulative of Ordinance No. 8886, and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instances said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. -2- rt . ~. SECTION 5. That this Ordinance shall take effect and be in full force and effect from and after the date of its passage, and it is so ordained. APPROVED AS TO FORM AND LEGALITY: City Attorney Date: ADOPTED: ~~~ ~~- ~3 EFFECTIVE: /~j - pZv~-~J~ lp 3 -3- CI"i Y YANA :F:R b ACCOUNTINCi•2 ~ /ll LL.~ ly( ® U ~lll~ !/ ~LIUY ~1./® ILIV U lLll~ l(i~ ~./~LY ~~ IV1L U IV~iliu.AV tL~® U lL TRANSPORTATIONJPUBLIC WVV"OIIRLLKS-~ MANAGEME IT~p~~~iCE$•1 REFERENCE SUBJECT Supplemental Appropriations to ~ PAGE NUMBER FY 83-84 Budget for Prior Year Encum- ~.Aw-i 12/22/83 G-5863 brances and Repayment of Unauthorized ` 1of 3 _ ~,NSUr<< Library Grant Expenditures Prior Year 'Encumbrances Once adopted, the City's annual operating expenditure budget is formally enacted into law through the passage of an appropriations ordinance Appropriations provide the legal authorization for governmental spending during the year. They also establish spending limits., since they cannot be exceeded legally unless subsequently amended by the City Council. #.,-~;~ Encumbrance accounting is a method of ensuring that the appropriations are not ~~ eac~4eded ~y' `encumbering funds as purchases or services are requested, it is ensured that expenditures plus related commitments do not exceed the appropria- tion. Encumbrances outstanding at year end represent the estimated amount of the expenditures ultimately to result if unperformed contracts in process at year end are completed. Encumbrances outstanding at year end do not constitute expenditures or liabilities because an appropriation for any given fiscal year can legally be spent only between October 1 and September 30. When appropria- tions lapse at year end, even if encumbered, the City may intend either to honor the contracts in progress at year end or to cancel them. If a decision is made to honor them, then• (1) encumbrances outstanding at year end should either be disclosed in the notes to the financial statements or reserved in fund balance, and (2) the subsequent year's appropriations should provide authority to complete these transactions. For example, on September 30, 1983, the City's unaudited financial statements show that the Finance Department had the following: ~~ Annual appropriation $ 1,132,889 Expended or encumbered 1,078,268 ` Remai~3iag, balance $ 54, 621 ~~ The remaining balance of the annual appropriation ($54,621) that was not expended or encumbered will lapse to the General Fund's Unreserved Fund Balance. Of the $1,078,268 at was expended or encumbered, $5,363 worth of services or items had not been~ivered, and thus were considered outstanding encumbrances as of September 30, 1983. A itemized list of outstanding encumbrances by department and/or fund is as follows: 1 PAGE 2 3 r ~ of _ rary Grant General Fund Mayor and Council City Manager Office of Management Services Data Processing Human Resources City Secretary Law Finance Personnel Transportation & Public Works City Services Planning Development Public Events Culture & Tourism Police Fire Emergency Preparedness Municipal Court Public Health Park & Recreation Public Library Non-departmental Total General Fund Equipment Services Fund Parking Garage Fund Water & Sewer Fund Golf Fund Airports Fund Office Services Fund Solid Waste Fund tures $ 1,251 284 59 2 12,157 810 4 70 27 5,363 3,995 277,176 1,564 30,5, .. ..~~r;. ~cif:4 yv',i.;;sy:.c 4 54 679 89,463 38,199 26,423 8,093 1,044 43,272 14,692 13,256 13.360 $ 552,929 $ 505,405 311 $ 705,288 $ 55,199 $ 724 $ 99 $ 50, 811 The sum of each fund's outstanding encumbrances will be reflected as a Reservation of Fund Balance/Retained Earnings in the FY 82-83 annual financial statements. Unauthorized Library Grant Expenditures The Library Department has been notified by the State Library that certain grants from previous fiscal years have "open" items that must be resolved within the next month or current Library grants will be suspended These ~=`~ ~_ ~.=,~ ,.~~ DATE REFERENCE SUBJECT Supplemental Appropriations t0 PAGE NUMBER FY 83-84 Budget for Prior Year Encum- 3 3 11/22/83 G-5863 brances and Repayment of Unauthorized --- °r_____ Library Grant Expenditures "open" items are unauthorized expenditures of grant funds for capital outlay and lack of proof that reported expenditures actually occurred for certain grant years. The unauthorized expenditures must be repaid, they are not negotiable. To provide the proof requested, the City must pay an external auditor to certify that the grant funds were spent as reported for certain years Unfortunately, most of the grants in question were prior to 1977, which is when the current accounting system was implemented. The research required to find the information so that the auditor can certify that expenditures were made as reported may be extensive The State Library has set a January 31, 1984, deadline for this information to be provided. A supplemental appropriation of $16,815 is required for the Library to resolve this matter. Of this amount, $6,815 is to repay the State Library for purchase of unauthorized items, and $10,000 is for the estimated audit fee. Recommendation: It is recommended that the City Council adopt an ordinance: 1) Authorizing the supplemental appropriations listed above for prior year's encumbrances so that authority is provided to complete these transactions and pay the vendors for items provided or services rendered, and 2) Authorizing a supplemental appropriation in the amount of $16,815 for the Library to close outstanding grants prior to 1980. ~ APPROVED ~Y RAM ms CITY COUNCIL ABC 22 1963 /~ D~. ~~~~"~~-cam' C1Ly $@OT@tOIy Ot th@ (.`lam Qf ~~ W,A~a SUBMITTED F.OR THE CITY MANAGER'S 1 `/~ //1 / ~ _ o //' // '/ / ~ DISPOSITION BY COUNCIL. PROCESSED BY 'OFFICE BY _ //} \ n { / / / / ' ! `/~ O APPROVED ORIGINATING ^ OTHER (DESCRIBE) DEPARTMENT HEAD: Kay CeCll CITY SECRETARY TIONAL IN FORMKAT IyNC A~~~TED il R©INANCE N0 ~~~~ a , ext eC CONTACT . DATE