HomeMy WebLinkAboutOrdinance 22993-11-2017 Ordinance No. 22993-11-2017
AN ORDINANCE INCREASING THE FISCAL YEAR 2017 ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GENERAL DEBT SERVICE FUND IN THE AMOUNT OF
$573,972.00, FROM AVAILABLE FUNDS, TO MAKE A TRANSFER TO THE CULTURE
AND TOURISM DEBT SERVICE FUND AND CORRECT A MISALLOCATION OF
PAYMENTS ON THE SERIES 2013 AND SERIES 2015 GENERAL OBLIGATION BONDS
IN PRIOR FISCAL YEARS; 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 amount
of$573,972.00 in the General Debt Service Fund, from available funds,to make a transfer to the Culture and
Tourism Debt Service Fund and correct misallocation of payments on the series 2013 and series 2015 general
obligation bonds in prior fiscal years.
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said prior ordinances and appropriations are hereby expressly repealed.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.
PPROVED AlTO/FORM AND LEGALITY: CITY SECRETA
Den . McElro aryJ. Kay
Sr. Assistant Citorney
ADOPTED AND EFFECTIVE: November 14. 2017
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 11/14/2017 - Ordinance No. 22993-11-2017
DATE: Tuesday, November 14, 2017 REFERENCE NO.: "G-19163
LOG NAME: 13GENERAL DEBT SERVICE FUND APPROPRIATION ORDINANCE
SUBJECT:
Authorize Adoption of a Fiscal Year 2017 Appropriation Ordinance Increasing the Estimated Receipts and
Appropriations in the General Debt Service Fund in the Amount of$573,972.00 (ALL COUNCIL
DISTRICTS )
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance increasing Fiscal Year 2017
estimated receipts and appropriations in the General Debt Service Fund in the amount of$573,972.00 to
make a transfer to the Culture and Tourism Debt Service Fund and correct a misallocation of payments on
the Series 2013 and Series 2015 general obligation bonds in prior Fiscal Years.
DISCUSSION:
In preparation for the annual external audit and publication of the Comprehensive Annual Financial
Report, the Financial Management Services Department completed a review of outstanding debt liabilities
across all funds as part of its year-end review. As a result of these activities, it has been determined that
actual debt service payments made on the Series 2013 and Series 2015 GO bonds were misallocated
between the General Debt Service Fund and the Culture and Tourism Debt Service Fund which are
pledged to support the debt. The misallocation resulted in the Culture and Tourism Debt Service Fund
overpaying for debt by the recommended amount through the end of Fiscal Year 2017. An accounting
entry was made to 2017 current year payments to correct the prior misallocation, using general debt
service fund balance that had accrued as a result of the fund's prior underpayment in order to make the
Culture and Tourism Debt Service Fund whole.
It is important to note that while debt service payments on the respective series were misallocated among
various participating funds and accounts, the sum of all debt expense equaled what was due and
payments were made in a timely fashion. Additionally, the series 2013 and 2015 GO bonds are
considered governmental debt for which liability is aggregated rather than being reported on a fund-by-
fund basis. Thus in prior year CAFRs, reporting of the total year-end liability for each series of debt was
not inaccurately reported.
Adoption of the attached appropriation ordinance supports the correcting accounting entry and will bring
the net position/fund balance and liabilities for each of the affected funds into correct balance as of 2017
Fiscal Year end. Steps have been taken to ensure the misallocation of payments does not occur in the
future. Internal debt service schedules have been updated to reflect correct amounts, and the debt
service payments reflected in the 2018 budget are accurate.
This M&C does not request approval of a contract with a business entity.
Logname: 13GENERAL DEBT SERVICE FUND APPROPRIATION ORDINANCE Page I of 2
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations, funds will be available
in the Fiscal Year 2017 General Debt Service Fund, as appropriated.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Account Project ProgramActivity Budget Reference # Amount
ID ID Year Chartfield 2
1)401001 0132000 5810100 $533,134.00
1 40100 0132000 5810200 $18,015.47
1)401001 0132000 5810300 $3,500.00
1)401001 0132000 5810303 $19,322.34
FROM _
Fund Department ccoun Project Programctivity BudgetT Reference # Amount
ID ID Year I (Chartfield 2)
CERTIFICATIONS:
Submitted for Ciy Manager's Office by: Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: Alex Laufer (2268)
Logname: 13GENERAL DEBT SERVICE FUND APPROPRIATION ORDINANCE Page 2 of 2