HomeMy WebLinkAboutOrdinance 22670-04-2017 ORDINANCE NO. 22670-04-2017
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GENERAL GAS LEASE CAPITAL
PROJECTS FUND IN THE AMOUNT OF $500,000.00, FROM AVAILABLE
GAS RELATED REVENUES, FOR THE PURPOSE OF SUPPLEMENTING
FUNDING FOR COMMUNITY FACILITY AGREEMENT PROJECTS
WHEN DEVELOPER CONTRIBUTIONS ARE INSUFFICIENT TO
COVER COSTS; AUTHORIZING THE CITY MANAGER TO MAKE
CERTAIN TRANSFERS AND ALLOCATIONS UP TO BUDGETED
AMOUNTS; 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 2016-
2017 in the Budget of the City Manager, there shall also be increased estimated receipts and
appropriations in the General Gas Lease Capital Projects Fund in the amount of$500,000.00, from
available gas related revenues, for the purpose of supplementing funding for community facility
agreement projects when developer contributions are insufficient to cover costs, with such
appropriations shown more fully as follows:
GENERAL GAS LEASE CAPITAL PROJECTS FUND
REVENUES:
Available Gas Well Related Revenues $500,000
TOTAL REVENUE $500,000
EXPENDITURES:
Non-Departmental $500,000
Transfers and appropriation to be made from the Non-Departmental
Center undesignated project within the Capital Projects Reserve
Fund to the applicable project incurring the cost.
TOTAL EXPENDITURES $500,000
Ordinance 22670-04-2017 Page 1 of 2
SECTION 2.
That, appropriations in the General Gas Lease Capital Projects Fund identify and allocate monies
that are anticipated to be required during the fiscal year to supplement funds received from
developers for the inspection, materials testing, and other services to be performed by City staff
in connection with community facility agreement projects that are funded solely by developers
when the amount of developer contributions is insufficient to cover the City's costs. In
accordance with Chapter X of the Charter of the City of Fort Worth, Texas, by adoption of this
ordinance, the City Council authorizes and delegates to City's City Manager authority, when
such a project has a shortfall, to enact and make transfers and allocations of such monies in a
cumulative amount not to exceed the total amount budgeted, with such transfers and
appropriation to be made from the Non-Departmental Project of the General Gas Lease Capital
Projects Fund to the receiving project's center within the General Gas Lease Capital Projects
Fund, provided, however, that the City Manager shall be required to report such transfers and
allocations to the City Council in periodic financial reports, which shall be submitted no less than
quarterly throughout the fiscal year.
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:
l
Dews C. cElro ssistant City Attorney MaryJfa3aer, City Secretary
ADOPTED AND EFFECTIVE: April 11, 2017
Ordinance 22670-04-2017 Page 2 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/11/2017 - Ordinance No. 22670-04-2017
DATE: Tuesday, April 11, 2017 REFERENCE NO.: "G-18981
LOG NAME: 03CFA DEVELOPER GAP FUNDING
SUBJECT:
Authorize Transfer of$500,000.00 in Previously Appropriated Gas Related Revenues to the General Gas
Lease Capital Projects Fund for Street Related Community Facilities Agreement Projects and Adopt
Ordinance Appropriating Funds and Delegating Authority to Effect Transfers Up to the Budgeted Total (ALL
COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the transfer of$500,000.00 in previously appropriated gas related funds from the General
Capital Projects Close Fund to the General Gas Lease Capital Projects Fund for street related community
facilities agreements; and
2. Adopt the attached ordinance, increasing receipts and appropriations in the General Gas Lease Capital
Projects Fund in the amount of$500,000.00 and delegating authority to the City Manager of his designee
to effect transfers within the fund up to its appropriated total.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to transfer previously appropriated
money from an old capital fund that is slated for closure to a more current fund and appropriate the funds
in their new location for their original purpose.
In November 2015, the City Council appropriated gas related revenues into the Capital Projects Reserve
Fund (which was consolidated into the General Capital Projects Close Fund as part of implementation of
ERP) as additional funding for street related community facilities agreements (CFAs) (M&C G-
18610). That appropriation was a supplement to the financial framework approved by the City Council to
support the execution and implementation of CFAs (M&C G-18840). The dollars appropriated in 2015
were put into a capital fund that contains a number of stale projects that are being cleaned up in
preparation for the fund's closing.
The purpose of the current M&C is to transfer the funds to a more current fund (the General Gas Lease
Capital Projects Fund) and appropriate them in the new location for use in the CFA process. Given that
the dollars appropriated in 2015 came from available gas related revenues, transferring them to the
General Gas Lease Capital Projects Fund allows them to be maintained in a manner consistent with the
funding type.
CFAs and Delegated Authority
As development occurs throughout the City of Fort Worth, developers enter into contracts with the City to
Logname: 03CFA DEVELOPER GAP FUNDING Page 1 of 3
undertake private construction of public infrastructure, such as roads or water lines (community facilities)
needed to support private development plans. Under the terms of the City's standard Community
Facilities Agreement (CFA), the developer is responsible for constructing facilities in accordance with City
standards and must also cover the costs of inspection and material testing by the City to ensure City
standards are being met.
As noted in M&C G-18840, the funds that are supposed to cover the City's costs are collected from
developers on a project by project basis in the form of a Developer Contribution and deposited as
appropriate. However, from reviewing past years' revenues and expenditures, Staff has determined that
the contribution structure needs to be reassessed. Currently, the contributions paid by developers for
small projects are generally insufficient to cover the City's costs while contributions for large projects
occasionally exceed costs, with the excess dollars subsequently being refunded.
As part of an overall infrastructure development process review, Staff will evaluate contribution rates and
recommend equitable assessments at the appropriate time. However, in the interim of studying and
updating the assessment structure in order to continue executing and implementing CFAs, fall back
funding sources are needed to cover City costs when they exceed the contribution rates. Staff
recommends the City Council transfer$500,000.00 of previously appropriated gas well revenue funds to
the current Gas Lease Capital Projects Fund and used to cover CFA costs when developer contributions
are insufficient to cover the total costs of providing the services.
The attached ordinance also delegates authority to the City Manager or his designee, when a situation
arises as outlined above, to enact and make transfers and allocations to individual CFA projects within the.
General Gas Lease Capital Projects Fund as needed. As transfers from the designated appropriations
are made, the remaining appropriated and designated total would be reduced. As capital funds, once
appropriated, the budgeted amounts would remain in the assigned CFA project until the money has been
expended or the project is completed. Annual re-appropriation would not be required.
The delegated authority granted by the attached ordinance is subject to the restriction that the total
amount of all such transfers within the fund may not exceed the amount appropriated and designated for
this purpose and is also subject to the requirement that the City Manager periodically report the transfers
and allocations to the City Council throughout the fiscal 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 approval of the above recommendation and adoption of the
attached appropriation ordinances, funds will be available in the current capital budgets of the General
Gas Lease Capital Projects Fund.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project JProgram ctivity Budget Reference # moun
ID ID Year (Chartfield 2)
FROM
Fund Department �4ccoun Project Program ctivity; BudgetT Reference # mount
ID ID ( Year I (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Logname: 03CFA DEVELOPER GAP FUNDING Page 2 of 3
Originating Department Head: Lynda Johnson (6222)
Additional Information Contact: Terry Hanson (7934)
Logname: 03CFA DEVELOPER GAP FUNDING Page 3 of 3