HomeMy WebLinkAboutOrdinance 22642-03-2017 ORDINANCE NO.22642-03-2017
AN ORDINANCE DECREASING APPROPRIATIONS IN THE PARK AND RECREATION
DEPARTMENT BUDGET OF THE GENERAL FUND BY $2,864,533.00 AND INCREASING
APPROPRIATIONS IN OPERATING TRANSFER OUT OF THE GENERAL FUND BY THE
SAME AMOUNT, FOR THE PURPOSE OF MAKING A TRANSFER TO THE BOTANIC
GARDEN SPECIAL REVENUE FUND; 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 the operating budget of the City of Fort Worth for Fiscal Year 2016-2017, as enacted by Ordinance 22393-09-2016, as
amended, is hereby further amended to reduce appropriations in the Park and Recreation Department of the General Fund by
$2,864,533.00, representing budget attributable to the Fort Worth Botanic Garden, for purposes of funding a transfer to the
Botanic Garden Special Revenue Fund.
SECTION 2.
That the operating budget of the City of Fort Worth for Fiscal Year 2016-2017, as enacted by Ordinance 22393-09-2016, as
amended, is hereby further amended to increase appropriations in Operating Transfer Out of the General Fund by
$2,864,533.00,for purposes of funding a transfer to the Botanic Garden Special Revenue Fund.
SECTION 3.
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 4.
That this ordinance shall be cumulative of Ordinance No. 22393-09-2016 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hereby expressly repealed.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 5.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
Tyler F. W 1 Ronald P.Gonzales,
Assistan ' Attorney Assistant City Secretary
ADOPTED AND EFFECTIVE:March 28,2017
Ordinance No.22642-03-2017
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/28/2017 - Ordinance No. 22642-03,-2017, 22643-0,3-2017
& 22644-03-2017
DATE: Tuesday, March 28, 2017 REFERENCE NO.: G-18978
LOG NAME: 80BG STRATEGIC PLAN FISCAL IMPLEMENTATION
SUBJECT:
Establish the Botanic Garden Special Revenue Fund by Committing All Revenues Generated from the Fort
Worth Botanic Garden and Receipted into the Fund to be Used Solely to Offset Botanic Garden Related
Expenditures, Authorize Transfers from the Special Purpose Fund and the General Fund to the Botanic
Garden Special Revenue Fund with No Increase to Total Budgeted Appropriation, and Adopt Appropriation
Ordinances (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council:
1. Establish the Botanic Garden Special Revenue Fund as a special revenue fund effective October 1,
2016, by committing all revenues generated from the Fort Worth Botanic Garden and receipted into the
Fund to be used solely to offset Botanic Garden related expenditures;
2. Adopt the attached ordinance decreasing appropriations in the Park and Recreation Department budget
of the General Fund by $2,864,533.00 and increasing appropriations in Operating Transfer Out by the
same amount, for the purpose of making a transfer to the Botanic Garden Special Revenue Fund;
3. Authorize a transfer from the General Fund to the Botanic Garden Special Revenue Fund in the amount
of$2,864,533.00;
4. Adopt the attached ordinance decreasing appropriations in the Park and Recreation Project of the
Special Purpose Fund by $1,620,756.00, and increasing appropriations in Operating Transfer Out by up to
$1,620,756.00, subject to receipt of revenues, for the purpose of making a transfer to the Botanic Garden
Special Revenue Fund;
5. Authorize a transfer from the Special Purpose Fund to the Botanic Garden Special Revenue Fund in the
amount of$1,620,756.00; and
6. Adopt the attached ordinance, increasing receipts and appropriations in the Botanic Garden Special
Revenue Fund by $5,150,066.00, which includes additional anticipated current-year Botanic Garden
revenue.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take actions associated with
establishing a Special Revenue Fund for the Botanic Garden effective October 1, 2016, including
committing all revenues generated at the facility and receipted into the Fund to offset Botanic Garden
expenditures and restructuring existing Botanic Garden budgets and appropriations so that the facility's
Logname: 80BG STRATEGIC PLAN FISCAL IMPLEMENTATION Pagel of 3
dollars all flow through the new Botanic Garden Special Revenue Fund (BG Fund). This action relates to
the Phase One implementation of the Fort Worth Botanic Garden Strategic Plan.
On November 15, 2016, the City Council authorized the acceptance of the Fort Worth Botanic Garden
Strategic Plan from EMD Consulting Group, LLC, and referred it to the City Manager and Staff for further
review and evaluation to develop strategies and polices for the implementation of the strategic plan (M&C
G-18885).
Staff has met with the Strategic Plan Transitional Committee comprised of representatives from the two
main support groups, the Fort Worth Botanical Society (FWBS) and the Fort Worth Garden Club (FWGC)
and other appointees to develop strategies related to earned revenues, Staff and operational expenses.
This is the first of three M&Cs related to implementation of Phase One.
Listed below are key components of the recommended changes. It is anticipated that these changes will
take effect in April, 2017 upon execution of the associated contracts with FWGC and FWBS.
1. Creation of the Botanic Garden Special Revenue Fund. The creation of a new BG Fund was
recommended to facilitate a transparent accounting and tracking of funds associated with the
facility. Revenue currently generated at the Fort Worth Botanic Garden (FWBG) through its two main
support organizations, the FWBS and the Garden Club Committee of the FWGS will now be receipted
into this fund.
Under Governmental Account Standards Board (GASB) standards, special revenue funds are used to
account for and report the proceeds of specific revenue sources that are restricted or committed to
expenditures for specific purposes (other than debt service or capital projects). The concept involves two
core elements: (1) a specific purpose and (2) one or more revenue sources that are restricted or
committed to that purpose and comprise a substantial portion of the funding for that purpose. For a
revenue source to be considered committed under GASB standards, the government's highest level of
decision-making authority must take formal action directing that revenue source be used only for specific,
identified purposes.
In the case of the BG Fund, the purpose is to support the on-going operation of the City's Botanic Garden,
which includes general operations, programming and staffing, facilities maintenance, equipment purchase
and maintenance, land maintenance and capital improvements. The revenues are generated from Botanic
Garden activities including rentals, retail sales, and Japanese Garden and conservatory admission.
In addition to the earned revenues currently generated through the support groups, the General Fund
dollars allocated to the Fort Worth Botanic Garden (10100 0807080) will be moved into the BG Fund.
Reimbursement revenues received from the Botanical Research Institute of Texas, Inc. and the Fuller
Foundation for maintenance of their areas at the FWBG will also be reassigned from the Special Purpose
Fund to the BG Fund.
Approval of this M&C will serve as formal action by the City Council as the City's highest level of decision-
making authority to commit all revenues generated from Botanic Garden activities and receipted into this
Fund.
If this action is approved, the committed revenues cannot be used for any other purpose unless the City
Council removes or changes the specified use.
Although current-year budget and appropriations will be moved out of their current locations in the General
Fund and Special Purpose Fund, some residual transactions from prior years' appropriations may be
booked in the Special Revenue Fund in the current year. Park staff will work with staff in Budget and
Financial Management Services to ensure all such transactions are cleaned up in connection with closing
Logname: 80BG STRATEGIC PLAN FISCAL IMPLEMENTATION Page 2 of 3
out the fiscal year and issuance of the FY2017 CAFR.
2. Personnel expenses. Expenses for the nine (9) existing City employees currently paid by the FWGC
and the five (5) City employees currently paid by the FWBS would be allocated to and expensed from the
BG Fund. The $100,000.00 contributed annually by the FWBS for education Staff and supplies would also
be charged against this fund. This amount includes the partial funding of three (3) City employees.
3. Hiring of FWBS employees. The FWBS employs staff to manage its organization and under
contractual Agreement manage the ticket office and Treasure Tree gift shop at the Japanese Garden.
There are 10 positions, eight filled, two vacant. The City will create 10 authorized positions and hire
incumbents as City employees. The Human Resources Department has approved this plan. There would
be no interruption in service at the FWBG.
4. Hiring of 3.5 new authorized positions. The earned revenues received through the support groups
currently exceed the expenses related to personnel expenditures. As recommended in the EMD
Consulting Group strategic plan assessment in order to improve the maintenance of the facility, the guest
experience and the opportunities for increased facility usage and associated revenue, the City will use
these funds to create 3.5 authorized positions including one (1) electrician, and 2.5 positions related to
customer service and custodial support.
Both the 10 FWBS positions and the new positions will be created as overages in the City system in the
current year and included as additions in the Fiscal Year 2018 City Manager's recommended Budget.
The Fort Worth Botanic Garden is located in COUNCIL DISTRICT 7 and is considered a City-wide Special
Use Facility. 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 adoption of the
attached appropriation ordinances, available funds within the Special Purpose Fund and the General Fund
will be transferred to the Botanic Garden Special Revenue Fund, and that funds will be available in the
current operating budget, as appropriated, of the Botanic Garden Special Revenue Fund. Upon approval
of this M& C, the Botanic Garden Special Revenue Fund will meet GASB' s criteria that will allow it to be
reported as a special revenue fund and that the Park and Recreation Department is responsible for the
collection and deposit of these revenues.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project JProgram ctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project JProgram ctivity Budget Reference # moun
ID ID Year (Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office bv: Susan Alanis (8180)
Originating Department Head: Richard Zavala (5704)
Additional Information Contact: Sandra Youngblood (5755)
Logname: 80BG STRATEGIC PLAN FISCAL IMPLEMENTATION Page 3 of 3