HomeMy WebLinkAboutOrdinance 22576-01-2017 ORDINANCE NO.22576-01-2017
AN ORDINANCE ADJUSTING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE IDENTIFIED FUNDS BY THE AMOUNTS SHOWN
AND DECREASING UNAUDITED FUND BALANCE/NET POSITION AS
INDICATED; 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 those amounts allocated to the various City departments for Fiscal Year 2015-2016 in the Budget of the
City Manager shall be subject to adjustments in estimated receipts and appropriations as follows:
o Increase in the General Fund of$4,555,290.00 and decrease in unaudited, unassigned fund balance
by the same amount;
o Increase in the Red Light Enforcement Fund of$342,155.00 from higher than budgeted revenues;
o Increase in the Tax Increment Fund—Zone No. 10(Lonestar/Cabela's)of$466,596.00 and decrease
in unaudited, restricted fund balance by the same amount;
o Increase in the Municipal Parking Fund in the amount of$800,043.00 to reflect transfer of funds
associated with reestablishment of associated debt service fund;
o Decrease in estimated receipts and appropriations in the General Debt Service Fund of
$40,970,055.00 to reflect transfer of funds associated with reestablishment of a Municipal Parking
Debt Service Fund;
o Increase in the Municipal Parking Debt Services Fund of$40,970,055.00to reflect transfer of funds
from General Debt Service Fund;
o Increase in the Golf Debt Service Fund of$407,030.00 and decrease in unaudited, restricted fund
balance by the same amount to support transfer of residual balance to Golf capital projects at
closure of fund;
o Increase in the Risk Management Fund of$7,786,444.00 and decrease in unaudited, unrestricted net
position by the same amount to support transfer of residual balance to Risk Financing Fund at
closure of Risk Management Fund;
o Increase in the Unemployment Compensation Insurance Fund of $860,521.00 and decrease in
unaudited, unrestricted net position by the same amount to support transfer of residual balance to
Risk Financing Fund at closure of Unemployment Compensation;
o Increase in the Risk Financing Fund of $12,655,130.00, reflecting transfers in from Risk
Management and Unemployment Compensation Funds and appropriation of$4,008,165.00, from
available revenues,to fund a transfer out to the Workers Compensation Fund to facilitate that fund's
closure;
o Decrease in the Group Health Insurance Fund of $28,465,653.00 to reflect transfer of
$32,432,100.00 in budget associated with retiree health benefit payments to a separate fund, as
offset by an increase in appropriation of $3,966,434.00 for additional claims payments and a
decrease in unaudited, assigned net position by the same amount;
o Increase in the Retiree Healthcare Trust of$32,432,100.00 to reflect transfer of budget associated
with retiree health benefits.
Ordinance No.22576-01-2017
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SECTION 2.
That should any portion, section or part of a section of this ordinance 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. 21873-09-2015 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 AS TO FORM AND LEGALITY:
Denis C. cElroy, istant City Attorney ary J se
As City Secretary
ADOPTED AND EFFECTIVE: January 24,2017
Ordinance No.22576-01-2017
Page 2 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/24/2017 - Ordinance No. 22576-01-2017
DATE: Tuesday, January 24, 2017 REFERENCE NO.: G-18929
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SUBJECT:
Adopt Ordinance Adjusting Appropriations in Various Funds and Amounts to Bring Revenues and
Expenditures Into Balance in Order to Finalize Fiscal Year 2016 (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance adjusting receipts and
appropriations in various Funds as described below in order to bring receipts and expenditures into
balance in order to finalize Fiscal Year(FY) 2016 and facilitate year-end closure and audit:
A. Adiustments to Reflect Spending in Excess of Approved and Appropriated Budget:
1. Increase estimated receipts and appropriations in certain departments of the General Fund by
$4,555,290.00 and decrease unaudited, unassigned fund balance by the same amount, which is entirely
offset by savings returned to the fund balance by other departments;
2. Increase estimated receipts and appropriations in the Red Light Enforcement Fund by $342,155.00
from higher than budgeted revenues;
3. Increase estimated receipts and appropriations in the Tax Increment Fund —Zone No. 10
(Lonestar/Cabela's) by $466,596.00 and decrease unaudited, restricted fund balance by the same
amount;
B. Adjustments to Reflect Modified Fund Structure without Increase to Budget:
4. Increase estimated receipts and appropriations in the Municipal Parking Fund by $800,043.00 to reflect
transfer of funds associated with reestablishment of Municipal Parking Debt Service Fund;
5. Decrease estimated receipts and appropriations in the General Debt Service Fund by $40,970,055.00
to reflect transfer of funds to the reestablished Municipal Parking Debt Service Fund;
6. Increase estimated receipts and appropriations in the Municipal Parking Debt Service Fund by
$40,970,055.00 to reflect transfer of funds from General Debt Service Fund;
7. Increase estimated receipts and appropriations in the Golf Debt Service Fund by $407,030.00 and
decrease the unaudited, restricted fund balance by the same amount;
8. Increase estimated receipts and appropriations in the Risk Management Fund by $7,786,444.00 and
decrease unaudited, unrestricted net position by the same amount to reflect transfer associated with
consolidation into recently created Risk Financing Fund;
9. Increase estimated receipts and appropriations in the Unemployment Compensation Insurance Fund by
$860,521.00 and decrease unaudited, unrestricted net position by the same amount to reflect transfer
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associated with consolidation into recently created Risk Financing Fund;
C. Adiustments to Reflect Modified Fund Structure with an Increase to Budget:
10. Increase estimated receipts and appropriations in the Risk Financing Fund by $12,655,130.00, from
residual balance transferred in from the Risk Management and Unemployment Compensation Insurance
Funds and from available revenues, to fund a transfer out to the Workers Compensation Fund to facilitate
that fund's closure;
11. Decrease estimated receipts and appropriations in the Group Health Insurance Fund by a net amount
of$28,465,653.00 to reflect transfer of$32,432,100.00 in budget associated with retiree health benefit
payments to a separate fund, as offset by an increase in appropriation of$3,966,434.00 for additional
claims payments and a decrease in unaudited, unrestricted net position by the same amount; and
12. Increase estimated receipts and appropriations in the Retiree Healthcare Trust Fund by
$32,432,100.00 to reflect transfer of budget associated with retiree health benefit payments.
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 operation.
The purpose of this Mayor and Council communication (M&C) is to adjust the final budget to reflect actual
performance for the year ending September 30, 2016. Any amounts over budget must be appropriated by
action of the City Council, in accordance with the City Charter (Chapter X, Section 5, and Expenditure
Only Pursuant to Appropriations). This action represents the final step before the external audit can be
completed and the Comprehensive Annual Financial Report published.
There are three categories of appropriations reflected in the attached ordinance. The first category
appropriates budget to offset excess expenditures in certain departments, with the total amount of each
increased appropriation offset either by savings in other departments (General Fund), increased revenues
(Red Light Enforcement Fund), or available funds (TIF 10). The second category of appropriations reflects
fund structure reorganization for Risk Management and Debt Service functions without any net new
spending. The third reflects budget increases for fund restructuring involving the Risk Financing Fund and
its predecessors and some excess costs for healthcare.
Below is a brief explanation of the activity that caused deviations from the adopted budget:
Spending in Excess of Approved and Appropriated Budget
The first part of the attached ordinance increases estimated receipts and appropriations in the budgets for
various funds and departments to offset spending that exceeded the FY 2016 authorized amount. The
department, fund, amount, and reason for the overage is explained below.
General Fund
Appropriation are increased by a cumulative amount of$4,555,290.00 as follows:
DEPARTMENT ADDITIONAL APPROPRIATION
Economic Development Department $109,175.00
Reason - Realigned budget during FY 2016 that was needed for economic development payments.
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Fire Department $144,445.00
Reason - Higher equipment and maintenance costs associated with outside repair services and specialty
parts for Fire apparatus.
Human Resources Department $27,700.00
Reason -An increase in the use of Temporary Employees over FY 2016 resulted in a budget overage.
Library Department $22,145.00
Reason - Encumbrance reporting errors showed more budget than was actually available causing
additional spending. Errors have been corrected and are being monitored.
Municipal Court Department $14,400.00
Reason - For the purchase of necessary Building Integration Software that is associated with overall
security of Municipal Court locations which was not originally included in the FY 2016 budget.
Police Department $3,975,230.00
Reason - The Police Department operating budget was reduced during the FY2016 forecast process by
$6,460,000. The non-departmental budget for civil service separation leave did not fully reflect historical
separation trends. In addition, due to unforeseen events, Police response activities were altered and
additional overtime was incurred to ensure the safety of both staff and the public. Both challenges led to a
budget overage.
Transportation and Public Works Department $262,195.00
Reason - The TPW budget was reduced during the FY 2016 forecast process by approximately
$400,000.00. Additional electricity charges came in after the forecasting process resulting in a budget
overage.
Note on Overall General Fund Performance —After the above-outlined increases are made, the Actual
Revenues in the General Fund will still exceed Expenditures by approximately $5 million, resulting in a net
contribution to fund balance.
Red Light Enforcement Fund
RED LIGHT ENFORCEMENT FUND ADDITIONAL APPROPRIATION
Transportation and Public Works Department $342,155.00
Reason - Higher revenues of$962,105 resulted in a higher payment to the State of Texas.
Tax Increment Reinvestment Fund —Zone No. 10
TIF #10 ADDITIONAL APPROPRIATION
Economic Development Department $370,071.00
Reason - FY 2015 payments were paid in FY 2016 resulting in a budget shortfall.
TIF #10A ADDITIONAL APPROPRIATION
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Economic Development Department $96,525.00
Reason - FY 2015 payments were paid in FY 2016 resulting in a budget shortfall.
Adiustments to Reflect Modified Fund Structure without Increase to Budget:
Over the course of the past several months a number of Funds have been restructured or reorganized,
including the re-creation of separate debt service funds for some of the City's enterprise funds (M&C G-
18820) and the consolidation of three Risk Management-related funds into a single Risk Financing Fund
(G-18491).
The second part of the attached ordinance adjusts appropriations to reflect fund-restructuring that did not
result in an increase in the overall City budget.
Municipal Parking Fund
MUNICIPAL PARKING FUND ADDITIONAL APPROPRIATION
Transportation and Public Works Department $800,043.00
Although the Municipal Parking Debt Service Fund was re-established in September, the M&C that
separated that debt service fund from its operating counterpart did not include the appropriation to support
the transfer of the portion of net position associated with debt service into the newly recreated debt service
fund. The attached ordinance enacts that appropriation.
Reallocation Between General Debt Service Fund and Municipal Parking Debt Service Fund
GENERAL DEBT SERVICE FUND REDUCED APPROPRIATION
Financial Management Services Department ($40,970,055.00)
MUNICIPAL PARKING DEBT SERVICE FUND ADDITIONAL APPROPRIATION
Transportation and Public Works Department $40,970,055.00
A portion of the Municipal Parking Fund's outstanding debt was refunded in mid-2016. At the time that
debt sale occurred, a separate debt service fund for the Municipal Parking did not exist; so the parking-
related funds were placed in the General Debt Service Fund (M&C G-18736).
Since the Municipal Parking Debt Service Fund was recreated late in FY2016, the receipts and
appropriations associated with refunding of the Parking-system debt more properly belong in the Parking
Debt Service Fund. Adoption of the attached ordinance adjusts the General Debt Service Fund and
Municipal Parking Debt Service Fund by corresponding amounts to reflects the reallocation of that budget
to its proper location.
Adjustment Associated with Elimination of Golf Debt Service Fund
GOLF DEBT SERVICE FUND ADDITIONAL APPROPRIATION
Financial Management Services Department $407,030.00
In FY2015 the Municipal Golf Fund was transitioned form an enterprise fund to a special revenue fund
(M&C G-18515). Following that action, the remaining outstanding debt associated with the Golf Fund was
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absorbed by the General Debt Service Fund, and City Council approved the use of residual balance in the
Golf Debt Service Fund for golf capital projects (M&C G-18872). However, an appropriation supporting
that transfer was not made. Adoption of the attached ordinance makes the necessary appropriation.
Consolidation of Unemployment Compensation and Risk Management Funds in the Risk
Financing Fund
UNEMPLOYMENT COMPENSATION FUND ADDITIONAL APPROPRIATION
Human Resources Department $860,520.00
RISK MANAGEMENT FUND ADDITIONAL APPROPRIATION
Financial Management Services Department $7,786,444.00
These funds were closed in FY2015 and replaced (along with the Workers Compensation Fund) by a Risk
Financing Fund (M&C G-18491). However, the residual balances in these funds were not officially
appropriated for transfer. Adoption of the attached ordinance appropriates those amounts to support the
transfer.
Adiustments to Reflect Modified Fund Structure with an Increase to Budget
Consolidation of Workers Compensation Fund in Risk Financing Fund and Offset of Negative Net
Position
RISK FINANCING FUND ADDITIONAL APPROPRIATION
Human Resources Department $12,655,130.00
The attached ordinance appropriates available revenues in the Risk Financing Fund in an amount
necessary to fund a transfer to the Workers Compensation Fund to eliminate a negative net position and
facilitate its closure, with the bulk of the appropriated funds coming from residual balances transferred in
to the Risk Financing Fund following closure of the Unemployment Compensation and Risk Management
Funds.
Reallocation Between Group Health and Retiree Health Funds and Offset of Increased Benefits
Costs
GROUP HEALTH INSURANCE FUND REDUCED APPROPRIATION
Human Resources Department $28,465,653.00
RETIREE HEALTHCARE TRUST ADDITIONAL APPRORPIATION
Human Resources Department $32,432,087.00
The City currently pays for health benefits for both active employees and certain retirees. Historically all
such payments were managed through a single fund. However, to better track the costs as between the
two populations and more accurately reflect expenditures, the decision was made to process health
benefits associated with retirees through a separate fund.
Adoption of the attached appropriation ordinance moves the $32,432,087.00 in budget associated with
retiree health benefit payments out of the Group Health Insurance Fund and into the Retiree Healthcare
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Trust.
Because benefit costs were higher than projected, an additional appropriation of$3,966,434.00 is needed
in the Group Health Insurance Fund. Approval of the attached ordinance appropriates that amount,
resulting in the net decrease to the Group Health Insurance Fund being only $28,465,653.00.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and the adoption of
the attached supplemental appropriation ordinance, funds will be available in the FY 2016 operating
budgets as appropriated to the various funds.
FUND IDENTIFIERS (FIDS):
TO
Fund Departmentccoun Project Program c#ivity Budget Reference # mol
ID ID Year Chartfield 2
FROM
Fund Department Accoun Project Program ctivity Budget Reference # �mounl
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Lynda Johnson (6222)
Additional Information Contact: Kip Dernovich (7371)
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