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HomeMy WebLinkAboutOrdinance 22433-09-2016 ORDINANCE NO. 22Y33-09-2016 AN ORDINANCE ENACTING FISCAL YEAR 2015-2016 YEAR-END BUDGET ADJUSTMENTS CONSISTING OF REALLOCATION OF RESOURCES AND OPERATING SURPLUSES TO OFFSET PROJECTED SHORTFALLS, TO FUND DEPARTMENTAL CAPITAL PROJECTS AND OUTLAYS, AND TO PARTIALLY FUND THE IT NETWORK INFRASTRUCTURE REPLACEMENT PROJECT; APPROPRIATING AVAILABLE NET POSITION IN THE MUNICIPAL GOLF FUND AND THE GROUP HEALTH INSURANCE FUND TO PARTIALLY FUND THE IT NETWORK INFRASTRUCTURE REPLACEMENT PROJECT AND DECREASING NET POSITION BY THE SAME AMOUNTS; AUTHORIZING AND DELEGATING AUTHORITY TO EFFECT ALL NECESSARY TRANSFERS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR THE REPEAL OF ALL ORDINANCES AND APPROPRIATIONS IN CONFLICT WITH THE PROVISIONS OF THIS ORDINANCE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: I OFFSETTING SHORTFALLS WITH SURPLUS SECTION 1. That the operating budget of the General Fund of the City of Fort Worth for Fiscal Year 2015-2016, as enacted by Ordinance 21873-09-2015, as amended, is hereby further amended to reduce appropriations in identified departmental budgets by a total of$1,973,000.00, representing available operating surplus, for use to offset deficits in other departmental budgets: Department Amount of Reduction Police Department $1,973,000.00 Total $1,973,000.00 Ordinance No.22433-09-2016 Page 1 of 6 SECTION 2. That the operating budget for the General Fund of the City of Fort Worth for Fiscal Year 2015-2016, as enacted by Ordinance 21873-09-2015, as amended, is hereby further amended to increase appropriations in the following departmental budgets by a total of$1,973,000.00, to offset anticipated deficits: Department Amount of Increase City Manager's Office $125,000.00 City Secretary's Office $23,000.00 Code Compliance Department $440,000.00 Fire Department $1,096,000.00 Financial Management Services $110,000.00 Property Management Department $179,000.00 Total $1,973,000.00 II ALLOCATING ADDITIONAL NET SURPLUS FOR CAPITAL PROJECTS AND OUTLAYS SECTION 3. That the operating budget of the General Fund of the City of Fort Worth for Fiscal Year 2015-2016, as enacted by Ordinance 21873-09-2015, as amended, is hereby further amended to reduce appropriations in identified departmental budgets by a total of$5,968,000.00, representing available operating surplus,to fund a transfer for capital projects and outlays: Department Amount of Reduction Police Department $4,487,000.00 Economic Development Department $706,000.00 Park&Recreation Department $231,000.00 Transportation/Public Works $480,000.00 Library Department $64,000.00 Total $5,968,000.00 Ordinance No.22433-09-2016 Page 2 of 6 SECTION 4. That the operating budget of the General Fund of the City of Fort Worth for Fiscal Year 2015-2016, as enacted by Ordinance 21873-09-2015, as amended, is hereby further amended to increase appropriations in Non-Departmental by$5,968,000.00, for purposes of making a transfer to the General Capital Projects Fund for capital projects and outlays. SECTION 5. That the capital improvement plan budget of the City of Fort Worth for Fiscal Year 2015- 2016, as enacted by Ordinances 22004-12-2015 and 22175-04-2016, as amended, is hereby further amended to increase appropriations in the General Capital Projects Fund by a total of$5,968,000.00 allocated to the following capital projects and outlays: Department Project/Outlay Amount Economic Development Department Economic Development Strategic Plan $350,000.00 Fire Department Physical Agility Equipment $100,000.00 Library Department Central Library Bathrooms $127,000.00 Park&Recreation • Furniture, fixtures and equipment for three $541,000.00 community centers • Fleet Equipment Police Department • Surveillance cameras $2,650,000 • In-car camera upgrades • Electronic citation writers • Gunshot location system(partial) Property Management Department • Replace Gordon Swift Building Roof $1,200,000.00 • Fire Station 43 Sewer Line • Construction Crew Equipment Transportation/Public Works Dept. • Two flameless pothole filler trucks $1,000,000.00 • Traffic Signal Equipment • Street Plan Manual Update Total $5,968,000.00 Ordinance No.22433-09-2016 Page 3 of 6 III REALLOCATING CERTAIN OPERATING SURPLUS AND OTHER RESOURCES TO PARTIALLY FUND THE IT NETWORK INFRASTRUCTURE REPLACEMENT PROJECT SECTION 6. That the operating budget of certain identified funds of the City of Fort Worth for Fiscal Year 2015-2016, as enacted by Ordinance 21873-09-2015, as amended, is hereby further amended to reallocate a total of $3,046,774.00 in the identified operating funds, representing current-year surplus, as a transfer to the IT Capital Projects Fund to pay the identified Fund's allocated contribution to the IT Network Infrastructure Replacement Project: Fund Amount of Operating Surplus Being Reallocated as Transfer to Capital Culture and Tourism Fund $385,653 Library Special Revenue Fund $1,131 Environmental Protection Fund $42,976 Red Light Enforcement Fund $11,309 Stormwater Utility Fund $308,749 Solid Waste Fund $153,809 Municipal Parkin Fund $10,179 Municipal Airports Fund $88,214 Water and Sewer Fund $1,927,135 Capital Projects Services Fund $90,476 Risk Financing Fund $27,143 Total $3,046,774 SECTION 7. That in addition to those amounts allocated to the various City departments and funds for Fiscal Year 2015-2016 in the operating budget of the City Manager, as enacted by Ordinance 21873-09-2015, as amended, there shall also be increased appropriations in the Municipal Golf Fund of $73,512.00, from available net position, and in the Group Health Insurance Fund of $28,274.00, from available net position, and a corresponding decrease in each Fund's net position, Ordinance No.22433-09-2016 Page 4of6 for the purpose of making a transfer to the IT Capital Projects Fund to pay each Fund's allocated contribution to the IT Network Infrastructure Replacement Project. SECTION 8. That the capital improvement plan budget of the City of Fort Worth for Fiscal Year 2015- 2016, as enacted by Ordinance 22004-12-2015, as amended, is hereby further amended to increase appropriations in the IT Capital Projects Fund by $3,148,560.00 for partial funding of the IT Network Infrastructure Replacement Project. IV ENACTING GENERALLY APPLICABLE PROVISIONS SECTION 9. That in accordance with the Charter of the City of Fort Worth, the City Council by adoption of this ordinance hereby authorizes all transfers contemplated and necessitated by the budget amendments and appropriations enacted herein and delegates to the City Manager, or his designee, authority to undertake all actions as necessary to effect such transfers within budgeted and appropriated amounts. SECTION 10. That should any part, portion, section, or part of a section of this ordinance be declared invalid or inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion, or judgment shall in no way affect the remaining parts, portions, sections, or parts of sections of this ordinance, which provisions shall be, remain, and continue to be in full force and effect. Ordinance No.22433-09-2016 Page 5 of 6 SECTION 11. All rights and remedies of the City of Fort Worth, Texas, are expressly saved as to any and all violations of the provisions of the Code of the City of Fort Worth, or any other ordinances of the City, that have accrued at the time of the effective date of this ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such ordinances, same shall not be affected by this ordinance, but may be prosecuted until final disposition by the courts. SECTION 12. That all ordinances and appropriations for which provisions have previously been made are hereby expressly repealed to the extent they are in conflict with the provisions of this ordinance. SECTION 13. 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: ATTEST: Sarah J. Fullen der ary er City Attorney City ecretary Adopted& Effective: September 20, 2016 Ordinance No.22433-09-2016 Page 6 of 6 City of Fort Worth, Texas Mayor and Council Communication COUNCIL.ACTION: Approved on 9120/2016 - Ordinance No. 22433-09-2016&.22434-09- 2016 DATE: Tuesday, September 20, 2016 REFERENCE NO.: G-18828 LOG NAME: 13FY2016 WINDUP SUBJECT: Adopt Ordinance Enacting Fiscal Year 2016 Year End Budget Adjustments by Reallocating Resources and Operating Surpluses to Offset Projected Shortfalls, to Fund Departmental Capital Projects and Outlays, and to Partially Fund the IT Network Infrastructure Replacement Project, Authorize All Associated Transfers, and Adopt Supplemental Appropriation Ordinance to Allocate $40,000.00 for a Rollover to Fund Services Benefitting Seniors (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached ordinance making Fiscal Year 2016 year-end budget adjustments to address projected departmental operational shortfalls for a net impact of$0: a. Reducing the Police Department budget in the General Fund by $1,973,000.00 due to projected savings to offset projected departmental shortfalls in other General Fund departments and to allocate revenue for transfer to capital projects and outlays. b. Increasing the following departmental General Fund budgets in the General Fund by $1,973,000.00 to address projected shortfalls: 1) City Manager's Office by $125,000.00 2) City Secretary's Office by $23,000.00 3) Code Compliance Department by $440,000.00 4) Fire Department by $1,096,000.00 5) Financial Management Services Department by $110,000.00 6) Property Management Department by $179,000.00 2. Adopt the attached ordinance transferring existing appropriations of$5,968,000.00 from the General Fund operating budget to General Capital Projects Fund: a. Reducing the following departmental General Fund operating budgets by $5,968,000.00 due to projected savings to fund City-wide capital projects or capital outlay. 1) Police Department by $4,487,000.00 2) Economic Development Department by $706,000.00 3) Park and Recreation Department by $231,000.00 4) Transportation/Public Works Department by $480,000.00 5) Library by $64,000.00 c. Increasing Non-Departmental by $5,968,000.00 and transferring to the General Capital Projects Fund. d. Increasing estimated receipts and appropriations in the General Capital Projects Fund by $5,968,000.00 from transferred operating surplus for the purpose of funding capital outlay and projects in Logname: 13FY2016 WINDUP Page I of 5 the Economic Development, Fire, Library, Park and Recreation, Police, Property Management, and Transportation/Public Works Departments. 3. Adopt the attached appropriation ordinances and transferring associated funds $3,148,560.00 to provide partial funding for the IT Network Infrastructure Replacement Project: a. Increasing appropriations in the Municipal Golf Fund by $73,512.00 and in the Group Health Insurance Fund by $28,274.00 and decreasing fund balance/net position in each Fund by the same amount for purposes of making a transfer to the IT Capital Projects Fund. b. Transferring to the IT Capital Projects Fund the following amounts from the existing appropriations in indicated sources, totaling $3,148,560.00: 1) $385,653.00 from the Culture and Tourism Fund 2) $73,512.00 from the Municipal Golf Fund 3) $42,976.00 from the Environmental Protection Fund 4) $11,309.00 from the Red Light Enforcement Fund 5) $308,749.00 from the Stormwater Utility Fund 6) $153,809.00 from the Solid Waste Fund 7) $10,179.00 from the Municipal Parking Fund 8) $88,214.00 from the Municipal Airports Fund 9) $1,927,135.00 from the Water and Sewer Fund 10) $90,476.00 from the Capital Project Services Fund 11) $28,274.00 from the Group Health Insurance Fund 12) $27,143.00 from the Risk Financing Fund 13) $1,131.00 from the Library Special Revenue Fund c. Increasing estimated receipts and appropriations in the amount of$3,148,560.00 in the IT Capital Projects Fund. 4. Adopt the attached supplemental appropriation ordinance decreasing Fiscal Year 2016 Non- Departmental and increasing expenditures in the Neighborhood Services portion of the General Fund budget for Fiscal Year 2017 by $40,000.00 from rollover of surplus funds from Fiscal Year 2016 in order to fund services benefiting senior citizens in the City. DISCUSSION: The purpose of this Mayor and Council Communication is to take actions associated with closing out Fiscal Year 2016. This includes increasing appropriations in certain departments that are projected to be over budget offset by decreasing appropriations in departments that anticipate savings. In addition, the net available surplus funds were evaluated during the Fiscal Year 2017 budget development process for opportunities to fund one-time capital projects and capital outlays in order to reduce the needs in the upcoming fiscal year. Also, the IT Network Infrastructure Replacement Project Phase II that is scheduled during Fiscal Year 2017 can be partially funded with current year savings in the non-General Funds. Finally, this M&C also takes actions to appropriate and rollover $40,000.00 in surplus from 2016 for services that benefit senior citizens in the City. 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. Based on third quarter re-estimates, it was determined that we anticipate surplus revenues of approximately $2.2 million and expenditure savings of approximately $9.9 million in the General Fund. In the past, Staff waited until the completion of the Comprehensive Annual Financial Report (CAFR) to effect the settlement of General Fund departments. Going forward, the intent is to manage this process during the current fiscal year and to allocate net savings to meet one-time capital needs when the fund balance exceeds required reserves. Logname: 13FY2016 WINDUP Page 2 of 5 Reallocating a Portion of Operating Surplus to Offset Department Shortfalls Based on the most recent forecast, unless funds are reallocated the following departments are projected to have deficits as of August 24, 2016: Additional ;General Fund Department I !Purpose Appropriations ICity Manager's Office $125,000.00 'Salaries and Benefits ICity Secretary's Office - Y $23,000.00 'Health Insurance I Code Compliance Department $440,000.00 Mosquito Surveillance i(M&C C-27771) Financial Management Services $110,000.00 Salaries and Benefits ! ehicle Maintenance and ,Fire Department $1,096,000.00 repair Property Management Department ; $179,000.00 (Electricity (,Total General Fund $1,973,000.00 The most recent forecast indicates that there is more than sufficient budget in the Police Department within the General Fund and adoption of the attached ordinance would reallocate available budget to the extent needed to offset these deficits. Reallocating a Portion of Operating Surplus to Fund Capital Projects and Outlays The projected surplus in the General Fund exceeds the projected deficits. Therefore, in addition to covering anticipated overages, adoption of the attached ordinance would reallocate available budget for the following General Fund departments to cover needed expenditures as described, either from available budget within their own department or from other departments: ;General Fund Transfer to (purpose —+ !Department Capital lEconom_is Development $350,000.00 JEconomic Development Strategic Plan Fire ' $100,000.00 Physical Agility Equipment rLibrar Y $127,000.00 Central Library Bathrooms ;Furniture, fixtures and equipment for three Park & Recreation $541,000.00 {community centers and fleet equipment !Surveillance cameras, in-car camera upgrades, ! Police $2,650,000.00 !electronic citation writers and part of gunshot E ;location system ' ;Property Management ;Roof replacement at Gordon Swift Building, Department $1,200,000.00 (sewer line at Fire Station 43, and construction 3 ;crew equipment t i $1,000.000.00 (Two flameless pothole filler trucks, traffic I +Transportation/Public !signal equipment such as crosswalk signals Logname: 13FY2016 WINDUP Page 3 of 5 Works ( and LED lights; revision of the 1987 Street Plan I Manual otal General Fund $5,968,000.00 I i Reallocating a Portion of Operating Surplus and Other Resources to Partially Fund the IT Network Infrastructure Replacement Project This M&C is also reallocating surplus budget from various sources for partial funding of the IT Solutions' Network Infrastructure Replacement Project. In addition, two funds plan to use fund balance to provide their portion of the project. On June 16, 2015, the City Council approved an agreement to provide for replacement of various IT network infrastructure (M&C C-27346). That M&C established an estimated total cost for the project of $14.4 million and allocated $7 million to fund Phase I, with Staff committing to development the funding strategy for the balance of the project. Phase I was completed during Fiscal Year 2016, and approval of funding in this M&C, when combined with monies approved in the recently adopted Fiscal Year 2017 budget, represents an additional funding of the total estimated project costs. Staff will endeavor to achieve the reduced final cost of$14 million. The following funds are transferring money in the current fiscal year to the IT Capital Projects Fund from surplus operating funds: Fund Transfer Culture and Tourism Fund $385,653.00 Library Special Revenue Fund $ 1,131.00 Environmental Protection Fund $42,976.00 Red Light Enforcement Fund $11,309.00 Stormwater Utility Fund $308,749000 Solid Waster Fund $153,809.00 Municipal Parking Fund $10,179.00 Municipal Airports Fund $88,214.00 Water and Sewer Fund $1,927,135.00 Capital Projects Services Fund $90,476.00 Risk Financing Fund $27,143.00 otal 1 $3,046,774.00 These two funds are transferring money in the current fiscal year to the IT Capital Projects Fund from newly available fund balance/net position that is being appropriated in the attached ordinance: Fund I Transfer Municipal Golf Fund $73,512.00 Group Health Insurance Fund $28,274.00 otal $101,786.00 The total amount of$3,148,560.00 will fund a portion of the Network Infrastructure Replacement Project, with additional funding from accumulated gas lease revenue provided in the adopted Fiscal Year 2017. Reallocating a Portion of Operating Surplus to be Rolled Forward to Fiscal Year 2017 for Senior Logname: 13FY2016 WINDUP Page 4 of 5 Services The final action recommended by this M&C responds to a City Council request raised during the recent budget adoption process. In the course of considering and adopting the Fiscal Year 2017 budget, support was voiced for increasing the allocation of resources for services that benefit senior citizens in the City. The adopted Fiscal Year 2017 budget includes a General Fund allocation of$80,000.00 for direct monetary support to Senior Citizen Services of Greater Tarrant County. In addition, the adopted budget provides approximately $100,000.00 in Community Development Block Grant (CDBG) funding to the organization and continues the funding that allows for in-kind support in the form of unpaid use of City facilities and equipment at various Community and Recreation Centers throughout the City. The adoption of the second attached ordinance would provide $40,000.00 in addition to the resources identified above for additional funding for services that benefit seniors in the City during the coming year. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon the approval of the above recommendations and adoption of the attached ordinance, funds will be available in the current operating and capital budgets, as appropriated, of the General Fund, Municipal Golf Fund, Group Health Insurance Fund, and the General Capital Projects Fund, and the IT Capital Projects Fund. FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year Chartfield 2 FROM Fund Department ccountl Project Program ctivity Budget Reference # moun ID ID Year Chart Field 2 CERTIFICATIONS: Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Lynda Johnson (6222) Additional Information Contact: Terry Hanson (7934) I.,ogname: 13FY2016 WINDUP Page 5 of 5