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HomeMy WebLinkAboutOrdinance 23394-09-2018 ORDINANCE NO. 23394-09-2018 AN ORDINANCE ENACTING FISCAL YEAR 2017-2018 YEAR-END BUDGET ADJUSTMENTS IN THE GENERAL FUND CONSISTING OF REALLOCATION OF RESOURCES AND OPERATING SURPLUSES TO OFFSET PROJECTED SHORTFALLS; AUTHORIZING AND DELEGATING AUTHORITY TO EFFECT ALL NECESSARY TRANSFERS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR THE REPEAL OF ALL ORDINANCES AND APPROPRIATIONS IN CONFLICT WITH THE PROVISIONS OF THIS ORDINANCE. SECTION 1. That the operating budget of the General Fund of the City of Fort Worth for Fiscal Year 2017- 2018, as enacted by Ordinance 22927-09-2017, as amended, is hereby further amended to reduce appropriations in the following General Fund departments by $7,160,328.00,representing available operating surplus,for use to offset deficits in other General Fund departmental budgets. Department Amount of Decrease Economic Development $2,787,639 Planning and Development $682,169 Community and Public Engagement $47,968 City Auditor $81,517 City Secretary $81,996 Transportation and Public Works $566,845 Code Compliance $530,252 Municipal Court $673,000 Non-Departmental 1,708,689 Total $7,160,328 SECTION 2. That the operating budget of the General Fund of the City of Fort Worth for Fiscal Year 2017- 2018, as enacted by Ordinance 22927-09-2017, as amended, is hereby further amended,to increase appropriations in the following departmental budgets by a total of $8,860,628.00, utilizing the $1,700,000.00 transfer to the General Fund from CCPD to address projected shortfalls due to salary and vacancy adjustments and contractual costs: Ordinance No.23394-09-2018 Page 1 of 3 Department Amount of Increase City Attorney's Office $51,266 Human Resources $126,658 Neighborhood Services $115,000 Library $151,681 Police $8,405,063 Park& Recreation $10,660 Total $8,860,628 SECTION 3. That in accordance with the Charter of the City of Fort Worth, the City Council by adoption of this ordinance hereby authorizes all transfers contemplated and necessitated by the budget amendments and appropriations enacted herein and delegates to the City Manager, or his designee, authority to undertake all actions as necessary to effect such transfers within budgeted and appropriated amounts. SECTION 4. That should any part,portion,section,or part of a section of this ordinance be declared invalid or inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion, or judgment shall in no way affect the remaining parts, portions, sections, or parts of sections of this ordinance, which provisions shall be, remain, and continue to be in full force and effect. SECTION 5. All rights and remedies of the City of Fort Worth,Texas, are expressly saved as to any and all violations of the provisions of the Code of the City of Fort Worth,or any other ordinances of the City, that have accrued at the time of the effective date of this ordinance;and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such ordinances,same shall not be affected by this ordinance,but may be prosecuted until final disposition by the courts. Ordinance No.23394-09-2018 Page 2 of 3 SECTION 6. That all ordinances and appropriations for which provisions have previously been made are hereby expressly repealed to the extent they are in conflict with the provisions of this ordinance. SECTION 7. That this ordinance shall take effect and be in full force and effect from and after the date of its passage,and it is so ordained. APPROVED AS TO FORM AND LEGALITY: ATTEST: arab J. Full wider Mary J. K r CityAtter ey City Secretary Adopted: September 18,2018 Effective:SiA�em&t—X 1 f Ordinance No.23394-09-2018 Page 3 of 3 M&C Review Page 1 of 5 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FORT11 COUNCIL ACTION: Approved on 9/18/2018 - Ordinance Nos. 23394-09-2018, 23395-09-2018, 23396-09-2018, 23397-09-2018, 23398-09-2018, 23399-09-2018, 23400-09-2018, 23401-09-2018 DATE: 9/18/2018 REFERENCE NO.: G-19375 LOG NAME: 03FY2018 WINDUP_ CODE: G TYPE: NON-CONSENT PUBLIC NO HEARING: SUBJECT: Adopt Ordinances Enacting Fiscal Year 2018 Year End Budget Adjustments by Reallocating Resources, Operating Surpluses, Available Current-Year Revenues, and Net Position, and to Offset Projected Shortfalls and Authorize All Associated Transfers (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached ordinances making Fiscal Year 2018 year-end adjustments to address projected departmental operational expenses. a. Reducing the following General Fund Departments budgets by a combined $5,451,639.00 recognizing the respective operational savings to address other General Fund projected shortfalls: 1) Economic Development Department by$2,787,892.00; 2) Planning and Development Department by $682,169.00; 3) Community and Public Engagement Department by $47,968.00; 4) City Auditor Department by$81,517.00; 5) City Secretary Department by $81,996.00; 6) Transportation and Public Works Department by$566,845.00; 7) Code Compliance Department by$530,252.00; and 8) Municipal Court Department by $673,000.00. b. Reducing the Non-Departmental budget in the General Fund by$1,708,689.00 to reflect savings from projected operational expenses. c. Increasing the following General Fund Department budgets by a combined $8,860,328.00 from the reduction identified above along with a transfer of$1,700,000.00 from the Crime Control and Prevention District Fund that was approved earlier this evening to address projected shortfalls due to salary and vacancy adjustments and contractual costs: 1) City Attorney' s Department by $51,266.00; 2) Human Resources Department by$126,658.00; 3) Neighborhood Services Department by$115,000.00; 4) Library Department by$151,681.00; 5) Police Department by $8,405,063.00; and 6) Park and Recreation Department by $10,660.00. 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Fleet and Equipment Services Fund in the amount of$2,481,634.00, from available funds, to address additional operational expenses. 3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the DFW Revenue Sharing Fund in the amount of$109,455.00, from available funds, to address future capital needs. 4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Summer Day Camp Project and the LEOSE Training Project of the Special Purpose Fund in the amount of$29,926.00, from available funds, to address additional operational expenses. http://apps.cfwnet.org/council_packet/mc_review.asp?ID=26266&councildate=9/18/2018 10/3/2018 M&C Review Page 2 of 5 5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Risk Financing Fund in the amount of$299,407.00, from available funds, to address additional operational expenses. 6. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Municipal Parking Fund in the amount of$155,734.00, from available funds, to address operational shortfalls. 7. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Retiree Healthcare Trust Fund in the amount of$944,009.00, from available funds, to address additional operational shortfalls. 8. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Solid Waste Fund in the amount of$460,089.00, from available funds and net position, to address operational shortfalls. 9. Authorizing all necessary transfers to affect 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 2018 by adjusting funding among General Fund departments; 2. To appropriate increased current-year revenue in the Fleet and Equipment Services Fund, DFW Revenue Sharing Fund, Special Purpose Fund, Risk Financing Fund, Municipal Parking Fund and the Retiree Healthcare Trust Fund to cover associated expenditures; and 3. To appropriate funds for increased expenditures in the Solid Waste Fund. 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 affect 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 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 separation leave costs for General Fund employees, certain contractual costs, election costs and tuition reimbursement costs; those allocations can be distributed to individual departments as they have specific expenses in these areas. For FY2018, the City Manager made allocations and transfers totaling $6,705,478.00 to various departments to cover separation leave ($5,597,401), race and diversity study ($200,000.00), election costs ($320,742.00), tuition reimbursement ($91,553.00), and minor contractual items ($495,782.00). At this time, the Non-Departmental budget of the General Fund has an available unencumbered appropriation balance of$2,803,090.00, and this M&C proposes reallocating $1,799,172.00 of that amount toward offsetting the noted projected shortfalls in certain General Fund department budgets. Reallocating a Portion of Operating Surplus to Offset Department Operational Expenses In aggregate, the General Fund is expected to receive $1,108,208.00 more in revenue than expenses at the end of FY2018. 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 estimates and salary and re-organization changes, http://apps.cfwnet.org/council_packet/mc_review.asp?ID=26266&councildate=9/18/2018 10/3/2018 M&C Review Page 3 of 5 higher expenses due to higher workload, persistent overage staffing, or contractual obligations. In addition, Economic Development is anticipated to have $2,787,892.00 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 amongst General Fund departments to cover additional expenditures. All of the changes related to the General Fund are outlined in the following chart: Revised Budget Revised Budget After Non- Departmental Dept/Fund Original Budget with Delegated FY2018 Additional Reasons Ordinance Supplemental Authority for Forecast Appropriations Appropriations Separation Leave City Attorney $6,854,668.00 $6,854,668.00 $6,886,668.00 $6,937,934.00 $51,266.00 Salary Overages City Auditor $1,844,889.00 $1,844,889.00 $1,844,889.00 $1,763,372.00 $(81,517.00) Salary Savings City Manager's $9,089,555.00 $9,095,627.00 $9,295,627.00 $9,295,627.00 $- Office City Secretary $1,591,936.00 $1,591,936.00 $1,912,678.00 $1,830,682.00 $(81,996.00) Salary Savings Code $20,210,080.00 $20,210,080.00 $20,210,080.00 $19,679,828.00 $(530,252.00) Salary Compliance Savings Economic Lower 380 Development $21,606,030.00 $21,606,030.00 $21,606,030.00 $18,818,138.00 $(2,787,892.00) agreement payments Financial $11,575,697.00 $11,592,697.00 $11,746,105.00 $11,836,588.00 $90,483.00 Salary Management Overages Fire $145,162,896.00 $145,162,896.00 $146,935,886.00 $146,935,886.00 $- Department Human Staffing Resources $4,550,811.00 $4,550,811.00 $5,015,721.00 $5,142,379.00 $126,658.00 Overages Library Salary Department $20,796,915.00 $20,796,915.00 $20,876,915.00 1 $21,028,596.00 $151,681.00 Overage Municipal Court $15,910,123.00 $17,710,123.00 $17,710,123.00 $17,037,123.00 $(673,000.00) Salary Savings Neighborhood $9,006,882.00 $9,045,810.00 $9,045,810.00 $9,160,810.00 $115,000.00 Salary Services Overage Non- $22,941,048.00 $22,968,081.00 $16,262,603.00 $13,459,513.00 $(2,803,090.00) Salary Departmental Adjustments Park and $47,333,665.00 $47,306,632.00 $47,450,288.00 $47,460,948.00 $10,660.00 Salary Recreation Overage Performance $6,157,844.00 $6,157,844.00 $6,232,626.00 $6,232,626.00 $- and Budget Planning and $16,966,584.00 $16,976,188.00 $16,976,188.00 $16,294,019.00 $(682,169.00) Salary Development Savings Police $239,817,496.00 $239,898,737.00 $243,272,237.00 $251,677,300.00 $8,405,063.00 Staffing Overages Property $15,218,685.00 $16,558,096.00 $16,647,586.00 $16,647,586.00 $- Management] I http://apps.cfwnet.org/council_packet/mc_review.asp?ID=26266&councildate=9/18/2018 10/3/2018 M&C Review Page 4 of 5 Transportation $58,233,504.00 $58,233,504.00 $58,233,504.00 $57,666,659.00 $(566,845.00) Salary and and Public Utility Works Savings Communication Salary and Public $4,064,007.00 $4,064,007.00 $4,064,007.00 $4,016,039.00 $(47,968.00) Savings Engagement General Fund $678,933,315.00 $682,225,571.00 $682,225,571.00 $682,921,653.00 $696,082.00 Total � L Included in the proposed reallocation for the Police Department is $1,700,000.00 that was transferred from the Crime Control and Prevention District in a separate M&C that was approved earlier this evening. The transferred dollars and other reallocated funds are being used to address the deficit associated with police officer overage positions, which are an eligible expenditure of CCPD funds. The funds were transferred from the CCPD Fund, rather than moving the expenses to that fund, so that total costs can more easily be tracked by having them in a single location. Fleet and Equipment Service Fund The Fleet and Equipment Services Fund is projected to have a shortfall of$2,481,634.00 as fuel costs and repair and maintenance costs 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. DFW Revenue Sharing Fund The DFW Revenue Sharing Fund is projected to transfer$109,455.00 more than budgeted to address capital funding needs. There is offsetting current-year available funds from Revenue Sharing to offset the shortfall. Special Purpose Fund The Summer Day Camp project of the Special Purpose Fund is projected to have a shortfall of $26,500.00 as operational expenses have been higher than budgeted. There is offsetting current-year available revenues from registration to offset the shortfall. The LEOSE Training Project of the Special Purpose Fund is projected to have a shortfall of$3,426.00 as operational expenses have been higher than budgeted. There are current-year available revenues to offset the shortfall. Risk Financing Fund The Risk Financing Fund is projected to have a shortfall of$299,407.00 as claims and pending litigation have been higher than budgeted. There is offsetting current-year revenues, to offset this shortfall. Municipal Parking Fund The Municipal Parking Fund is projected to expend $155,734.00 more than budget for costs related to contractual parking services. There is offsetting 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 projected to have a shortfall of$944,009.00 due to additional expenditures related to retiree healthcare costs. There is offsetting current-year revenues, from retiree contributions and prescription rebates, to offset this shortfall. Solid Waste Fund The Solid Waste Fund is projected to have a shortfall of$460,089.00 due to contractual service related to solid waste pick-up which have been higher than budgeted. There is offsetting current-year revenue from residential billing revenues in the amount of$61,110.00, while the remaining shortfall will be covered by the use of net position in the amount of$398,979.00. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION/CERTIFICATION: http://apps.cfwnet.org/council_packet/mc_review.asp?ID=26266&councildate=9/18/2018 10/3/2018 M&C Review Page 5 of 5 The Director of Finance certifies that upon the approval of the above recommendations and adoption of the attached ordinances, funds will be available in the current operating budgets, as appropriated, of the General Fund, Fleet and Equipment Services Fund, Water& Sewer Fund, DFW Revenue Sharing Fund, Special Purpose Fund, Risk Financing Fund, Municipal Parking Fund, Retiree Healthcare Trust Fund and the Solid Waste Fund. TO Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year (Chartfield 2) FROM Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year (Chartfield 2) Submitted for City Manager's Office by: Fernando Costa (8180) Originating Department Head: Lynda Johnson (6222) Additional Information Contact: Terry Hanson (7934) ATTACHMENTS 03FY2018 WINDUP 1.docx 03FY2018 WINDUP 2.docx 03FY2018 WINDUP 3.docx 03FY2018 WINDUP 4.docx 03FY2018 WINDUP 5.docx 03FY2018 WINDUP 6.docx 03FY2018 WINDUP 7.docx 03FY2018 WINDUP 8.docx http://apps.cfwnet.org/council_packet/mc_review.asp?ID=26266&councildate=9/18/2018 10/3/2018