Loading...
HomeMy WebLinkAboutOrdinance 22931-09-2017 Ordinance No. 22931-09-2017 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE MUNICIPAL PARKING FUND IN THE AMOUNT OF $200,000.00, FROM CURRENT- YEAR AVAILABLE PARKING REVENUES, FOR THE PURPOSE OF FUNDING INCREASED CONTRACTUAL COSTS RELATED TO PARKING SERVICES; 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 Municipal Parking Fund in the amount of$200,000.00, from current-year available parking revenues, for the purpose of funding increased contractual costs related to parking services. 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 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 4. This ordinance shall take effect upon adoption. APP OED AS T FORM AND LEGALITY: CITY SECRET Y 1 Denis C. M Iroy, S7 Assistant City Attorney MarJ. tgr !" ADOPTED AND EFFECT IVE: September 26, 2017 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9/26/2017 - Ordinance Nos. 22930-09-2017, 22931-09- 2017, 22932-09-2017, 22933-09-2017, 22934-09-2017, 22935-09-2017, 22936-09-2017, 22937- 09-2017, 22938-09-2017, 22939-09-2017, & 22940-09-2014 DATE: Tuesday, September 26, 2017 REFERENCE NO.: G-19118 LOG NAME: 03FY2017 WINDUP SUBJECT: Adopt Ordinances Enacting Fiscal Year 2017 Year End Budget Adjustments by Reallocating Resources, Operating Surpluses, and Available Current-Year Revenues and Fund Balance to Offset Projected Shortfalls and Authorize All Associated Transfers (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached ordinance making Fiscal Year 2017 year-end adjustments to address projected departmental operational shortfalls. a. Reducing the Economic Development Department budgets in the General Fund by $1,750,000 due to projected savings from 380 Agreement Payments to offset projected departmental shortfalls in other General Fund departments. b. Increasing the following General Fund Department budgets by$1,750,000 to address projected shortfalls due to salary and vacancy adjustments and contractual costs: 1)City Attorney Department by$50,000.00 2)City Manager's Office by$145,000.00 3) Financial Management Services by$100,000.00 4) Human Resources Department by$285,106.00 5) Library Department by$362,011.00.00 6) Neighborhood Services Department by$60,000.00.00 7)Planning&Development Department by$421,000.00 8) Property Management Department by$326,883.00 2. Adopt the attached ordinance reallocating $445,000 in Fiscal Year 2017 unspent appropriations in the Treasury Asset Forfeiture Fund for a transfer to the General Fund for eligible Police overtime expenses to cover a shortfall. 3. Adopt the attached ordinance reallocating $49,600 in Fiscal Year 2017 unspent appropriations in the Justice Asset Forfeiture Fund and increasing estimated receipts and appropriations in that Fund by $1,525,400 from available forfeitures and fund balance for a transfer to the General Fund for eligible Police overtime expenses to cover a shortfall. 4. Adopt the attached ordinance reallocating $591,213 in Fiscal Year 2017 unspent appropriations in the State Asset Forfeiture Fund and increasing estimated receipts and appropriations in that Fund by $198,787 from available forfeitures for a transfer to the General Fund for eligible Police overtime expenses to cover a shortfall. 5. Adopt the attached ordinance increasing estimated receipts and appropriations in the General Fund in Logname: 03FY2017 WINDUP Page 1 of 6 the amount of$2,810,000 from transferred forfeiture funds for eligible Police overtime expenses to cover a shortfall. 6. Adopt the attached ordinance increasing estimated receipts and appropriations in the General Fund in an amount equal to the lesser of$550,000 or the actual year-end negative fund balance in the Municipal Golf Fund, from current-year available sales tax revenues, to address the delayed opening of Rockwood Golf Course. 7 Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Municipal Golf Fund in an amount equal to the lesser of$550,000 or the actual year-end negative balance in the Fund. 8. Adopt the attached ordinance increasing estimated receipts and appropriations in the Solid Waste Fund in the amount of$1,700,000 from current-year available container hauling fees, landfill lease revenue, and recycling waste revenue to address the projected departmental operational shortfalls. 9. Adopt the attached ordinance increasing estimated receipts and appropriations in the Fleet Service Fund in the amount of$1,000,000, from current-year available charges for services, to address increased outside repair costs. 10. Adopt the attached ordinance increasing estimated receipts and appropriations in the Municipal Parking Fund in the amount of$200,000, from current-year available parking revenues, to address increased contractual services costs related to parking services. 11. Adopt the attached ordinance increasing estimated receipts and appropriations in the Retiree Health Care Trust Fund in an amount equal to the lesser of$3,000,000 or the actual shortfall for the year, from net position, to cover higher than anticipated retiree health claims. 12. Authorizing all necessary transfers to effect the appropriations identified above. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is: 1. To take actions within the General Fund associated with finishing Fiscal Year 2017 by adjusting funding among General Fund departments; providing funds to the Municipal Golf Fund to cover the anticipatec negative year-end fund balance associated with the delayed opening of the Rockwood Golf Course; tc identify actions necessary and to resolve the Police Department's General Fund projected deficit by appropriating additional asset forfeiture funds; 2. To appropriate increased current-year revenue in the Solid Waste, Fleet Service, and Parking Funds to cover associated expenditures; and 3. To appropriate funds for increased costs associated with Retiree Healthcare. 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. In the past, Staff has waited until the completion of the Comprehensive Annual Financial Report (CAFR) to effect the settlement of General Fund departments. The current practice is to manage this process during the current fiscal year and allocate net savings to meet one-time needs or to address items that have arisen during the fiscal year. General Fund Logname: 03FY2017 WINDUP Page 2 of 6 The City Manager is authorized by the budget ordinance to move certain monies from Non-Departmental to other departments, as needed, under delegated authority. The Non-Departmental budget in the General Fund includes allocations based on the Fund's overall annual budgeted need for electric utility contingency cost, separation leave costs for General Fund employees, contractual costs, election costs and tuition reimbursement costs; that allocation can be distributed to individual departments as they have specific expenses in these areas. For FY17, the City Manager made allocations and transfers totaling $8,311,372 tc various departments to cover separation leave ($7,809,772), vacancy rate adjustments ($20,228), race and diversity study ($200,000), election costs ($141,372), and minor contractual items ($140,000). Reallocating a Portion of Operating Surplus to Offset Department Shortfalls In aggregate, the General Fund is expected to receive $600,000.00 more in revenue than expenses at the end of FY2017. Based on the most recent forecast, unless funds are reallocated, some departments are projected to have deficits at the end of the fiscal year due to vacancy and salary changes, higher expenses due to higher workload, or contractual obligations. In addition, Economic Development is anticipated to have $1,750,000 in savings primarily from lower than anticipated 380 Agreement payments. To address the forecasted General Fund departmental deficits, adoption of the first attached ordinance will reallocate available budget from Economic Development's anticipated savings to the General Fund departments to cover needed expenditures, and adoption of the ordinances associated with recommendations 2-5 will reallocate asset forfeiture funds to cover a Police shortfall in the General Fund associated with overtime that is described in more detail below. All of the changes related to the General Fund (including a transfer out to Golf that is described below) are outlined in the following chart. Revised Budget After Non- Departmental Delegated Revised Authority for Original Budget with Separation Leave Budget Supplement and Contracted FY2017 Additional Dept/Fund _I Ordinance _Appropriationsi Services 1 Forecast lAppropriationslReasons City Attorney 1 $ 6,326,798F—$ 6,377,7151 $ 6,377,7151 $6,427,715'1 $ 50,000 alary Adjustments City Auditor 1 $ 1,804,11-51 $ 1,804,115F—$ 1,804,1151 $ 1,804,4151 $- City Manager's acancy 054027F $ 8354027 $ 8499027 $ 145,000 dj stments Office $ 7,932,913 $ 8, , , , , , _ City Secretary_1 $ 1,322,1671 $ 1,648,2781 $ 1,7_89,6501 $ 1,789,6501– $ -(~� Code 1$ 19,983,542 $ 19,983,542 $ - Compliance $ 19,983,542Fs 19,983,542 Lower 380 Economic Agreement Development_ $ 17,974,825F$ 17,980,825 $ 17,980,825 $ 16,230,825 $(1,750,000)Payments Financial acancy Management 1 $ 1,122,156 $ 11,122,156 $ 11,322,1561$ 11,422,156 $ 100,000 dj st ents iFireFire Department $ 138,966,469 $ 138,966,469 $ 142,146,469 142,146,469 $ -1 Departmen 1$ 138,966,4691$ 138,966,469 $ 142,146,4691 Human - Human Resources 1 $ 4,376,467 $ 4,376,467 $ 4,403,361 $4,688,467 $285,106 ension Consultant Library acancy Department _ $ 19,125,037 $ 19,125,037 $ 19,224,026 $ 19,586,037 $ 362,011 djustments Municipal Court $ 17,268,127 $ 17,268,127{ $ 17,549,1271$ 17,549,1271 $- I I �.� Neighborhood acancy Logname: 03FY2017 WINDUP Page 3 of 6 Iservices 1 $ 8,974,7441 $ 9,014,7441 $ 9,054,7441 $ 9,114,7441 $ 60,000 djustments Departmental $ 50,816,439 $ 49,525,247F$ 41,213,8751$41,763,875 $ 550,000 ransfer to Golf Park and 1 $ 44,175,0731$44,175,073 $-�^ Recreation $ 43,847,073 $ 43,847,073 Performance and Budget 1 $ 5,662,328 $ 6,155,3781 $ 6,155 378 $6,155,378 $ -Highe Planning & $ 13617 $ 1tsr Workload & Development $ 13,530,4111 , ,701 3,617,701 $ 14,038,701 $421,000o_ _ Police _ $226,302,4141$226,821,2591 $230,471,2580233,281,2581 $2,810,000overtime acancy djustments& Property entralized Management $ 10,915,692 $ 24,415,692F$ 24,480,809 $24,807,692 $ 326,883 ontract Costs rans rpic bl pWorksn & $ 32, $ 32,753 154 $ 32,753,154 $-� 753,154 $ 32,753,154 , 550,000 transfer o Golf&$2.81 M General Fund ransfers from asset Total $639,004,871 $652,857,005 $652,857,005$656,217,005 $3,360,000 orfeiture Included in the proposed reallocation above are funds to address a Police Department estimated General Fund deficit of$2,810,000 associated with overtime. Because overtime is an eligible expenditure of forfeiture funds, the Department intends to utilize those funds to address this deficit. This M&C reallocates existing unspent appropriations and appropriates additional available forfeiture funds and fund balance for transfers to the General Fund as follows: . Reallocation of$445,000 from current-year unspent appropriations in the Treasury Asset Forfeiture Fund for a transfer to the General Fund -The forecasted fund balance is $30,000 at the end of FY2017. . Reallocation of$49,600 from current-year unspent appropriations in the Justice Asset Forfeiture Fund and additional appropriation of$1,525,400 of available forfeiture funds and fund balance for a transfer to the General Fund - The fund has $396,287 of current-year received forfeitures to appropriate and the balance of$1,129,113 will come from fund balance, leaving a forecasted fund balance of$66,000 at the end of FY2017. . Reallocation of$591,213 from current-year unspent appropriations in the State Asset Forfeiture Fund and additional appropriation of$198,787 of available forfeiture funds for a transfer to the General Fund -The fund has $198,787 of current-year received forfeitures to appropriate, leaving a forecasted fund balance of$250,000 at the end of FY2017. Adoption of the ordinance associated with the fifth recommendation appropriates the $2,810,000 of transfers from forfeiture funds in the Police Department portion of the General Fund in FY2017. Municipal Golf Fund Following the recent forecast, the Municipal Golf Fund is on pace to end FY17 with a negative fund balance as a result of the planned delayed opening of Rockwood Golf Course. This M&C seeks authorization to appropriate a portion of the current year's higher-than-budgeted sales tax revenues for a transfer from the General Fund to the Municipal Golf Fund in an amount equal to the lesser of$550,000 or the final year-end negative fund balance in the Municipal Golf Fund. Logname: 03FY2017 WINDUP Page 4 of 6 The budgeted operational subsidy to Municipal Golf for FY2017 is $615,000. With this transfer the subsidy for Municipal Golf for FY2017 will be up to $1,165,000.The appropriation ordinances associated with recommendations 6 and 7 effect the transfer from the General Fund to the Municipal Golf Fund. Solid Waste Fund The Solid Waste Fund is projected to expend $1,700,000 more than budgeted for contractual service related to solid waste pick-up that was insufficiently budgeted for in FY2017. There is offsetting current-year revenue from container hauling fees, landfill lease and recycling waste revenues to offset the shortfall. Equipment and Fleet Service Fund The Fleet Service Fund is projected to have a shortfall of$1,000,000 as the Outside Repair& Maintenance expenses have been higher than budgeted. These additional expenses are passed through and charged to the departments resulting in increased revenues that offset this shortfall. Municipal Parking Fund The Municipal Parking Fund is projected to expend $200,000 more than budget for costs related to contractual parking services. There is offsetting revenue from current-year parking revenue, which resulted from higher than anticipated parking activities, to offset this shortfall. Retiree Healthcare Trust Fund The Retiree Healthcare Trust Fund is forecasted to have $3,000,000 in additional expenditures over budget related to retiree healthcare costs. Approval of the ordinance associated with recommendation 11 will appropriate net position in this fund to cover the overage with the expectation that plan changes will contain retiree healthcare costs. 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 budgets, as appropriated, of the General Fund, Treasury Asset Forfeiture Fund, Justice Asset Forfeiture Fund, State Asset Forfeiture Fund, Municipal Golf Fund, Solid Waste Fund, Fleet Service Fund, Municipal Parking Fund, and Retiree Health Care Fund. The net position appropriation within the Retiree Health Care Fund will be from non-liquid trust assets, requiring an inter-fund loan to be provided from the General Fund. This loan will be administered under the Financial Management Policy Statements. FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year Chartfield 2 FROM Fund Department ccoun Project JProgram ctivity Budget Reference # �71 ID ID Year Chartfield 2 CERTIFICATIONS: Submitted for City Manager's Office by: Susan Alanis (8180) Logname: 03FY2017 WINDUP Page 5 of 6 Originating Department Head: Lynda Johnson (6222) Brady Kirk (8520) Additional Information Contact: Terry Hanson (7934) Logname: 03FY2017 WINDUP Page 6 of 6