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HomeMy WebLinkAboutOrdinance 19600-03-2011Ordinance No. 19600-03-2011 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GENERAL FUND IN THE AMOUNT OF $148,011.00 IN THE DEPARTMENTS THAT ARE OVER BUDGET, AND DECREASING THE UNAUDITED, UNRESERVED, UNDESIGNATED GENERAL FUND BALANCE BY THE SAME AMOUNT FOR THE PURPOSE OF FINALIZING THE FISCAL YEAR 2010 BUDGET; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES AND REPEALING ALL PRIOR 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 2009-2010 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the General Fund in the amount of $148,011.00 in the General Fund departments that are over budget, and decreasing the unaudited, unreserved, undesignated General Fund balance by the same amount for the purpose of finalizing the Fiscal Year 2010 budget. 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 No.18809 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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. APPROVED AS TO FORM AND LEGALITY: Assistant Ci Attorney ADOPTED AND EFFECTIVE: March 22, 2011 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 3/2212011 -Ord. No. 19600-03-2011 e „r . , ~ o,~., s~ :~ _. ~ ...~,. DATE: Tuesday, March 22, 2011 LOG NAME: 13FY2010 CLOSING REFERENCE NO.: G-17246 SUBJECT: Adopt Supplemental Appropriation Ordinance in the Amount of $148,011 for Fiscal Year 2010 Year End Budget Adjustments and Decrease the Unaudited, Unreserved, Undesignated General Fund Balance by the Same Amount RECOMMENDATION: It is recommended that the City Council adopt the attached supplemental appropriation ordinance increasing appropriations for Fiscal Year 2010 by $148,011 in the General Fund departments that are over budget and decreasing the unaudited, unreserved, undesignated General Fund balance by the same amount. DISCUSSION: The City's annual General Fund operating budget is formally enacted into law by City Council action adopting an appropriation ordinance that establishes spending limits for each department's operation. The purpose of this M&C is to provide the City Council with the final balanced budget, per the audit, for the year ending September 30, 2010. This process begins with the recording of all expenditures from October 1, 2009 to September 30, 2010 plus all expenditures found posted to the Fiscal Year 2011 that should be posted as prior year expenditures. As a result of the external auditors' review, additional expenditure entries are either posted or re-classed resulting in changes to departments' final total expenditures. All departments' final expenditures are then compared against the budgeted amount approved from the original or supplemental appropriation during the year, which results in today's action. The amounts over budget must be appropriated by action of the City Council in accordance with the City Charter (Chapter X, Section 5, Expenditure Only Pursuant to Appropriations). This action represents the final step before the audit can be completed and the Comprehensive Annual Financial Report published. .GENERAL FUND DEPARTMENT ~~ _~ ADDITIONAL APPROPRIATIONS Code Compliance Environmental Management __ Total General Fund $147,641 ........370 $148,011 Below is a brief explanation of the activity that caused these departments to exceed their budgets: Code Compliance -Budget overage is primarily due to private mowing, temporary labor and other contractual services which more than offset savings in IT leased equipment costs and office equipment purchases. The increased mowing expenditures are recovered through mowing fees from high grass and weed violations. Logname: 13FY2010_CLOSING Page 1 of 5 Environmental Management -Personnel costs were slightly higher than budgeted. While this M&C concentrates on the departments that need additional appropriations, it is also appropriate to note that Fiscal Year 2010 revenues and other financing sources were more than the estimated amount in total as follows: _ (000's~~FAVORABLE .REVENUES AND OMITTED) i (UNFAVORABLE) _----.____W__--~- ~-_~. ~_~~ ~ __ :OTHER FINANCING SOURCES ~_ _____~ ACTUAL ~ BUDGET ;~ ~ VARIANCE General Property Taxes ,$293,534.€ $292,441 __. ~ $1,093 . __.~_..___ ~.____.~. ~ _..~_ ___.~~_~~ _.~ _~~_ _ :Sales Taxes ___-----.----- _.-__.__. ~ _ ~ $99,934 _ ~~~_u~____ $98,866 ._ ~ __~._ ~_ _~.~ _ $1,068 :Other Local Taxes $8,881 $9,078' $(197) :Charges for Services $20,838 $23,720 $(2,882) :Licenses and Permits $44,709 $42,7581 $1,951' :Fines and Forfeitures $14,6561; $13,168 ~~~ $1,488' _ Revenue from Use of _ _ $4,086' $5,701 ~_~ _$(1,615) :Money ~.__ .__ _ Intergovernme ~~ .~__ ~ ntal . __ $1,320 $1,289 ~ $31 _ _ -: _ :Other Revenues ~ $1,9191 $1,525 $394 :Transfers In -Out Funds $39,257' $42,336 $(3,079 ;Intra-Fund Transfers In $3.364,; $0.00 3 364' Total Revenues $532,498;` $530,882 _ _ -- $1,616 It is also noteworthy to mention departments that did not exceed or had savings below the approved budget as identified below. Savings noted below may or may not be fully realized because the funds are rolled over for use in Fiscal Year 2010-11. For example, this occurs most often when a construction contract takes more than a year to execute or when vehicles take longer than a year to bid, order and receive. DEPARTMENT (000's OMITTED) City Manager City Secretary Code Compliance $442 $449 $0 $467 _ _$86 ........_.....__._...... $20 .......... _____._.... $231 ______. $315 $136 _....$304 Logname: 13FY2010_CLOSING Page 2 of 5 ;Municipal Court $250 $44 Non-Departmental $12,572 $5,743' ..Parks and Community Services ~~~ ~~~~ _________ $614 ___„________ ~~ ____ __ $41 _a.____ ~ __~~ ~ .~ ~ _ ____ __~_~_._ _ . ~ . ___ . ~ '..Planning and Development ~ _ ___ $1,565 ____.____ ~ _ __ ~ ~ _~___ $680 '.Police $2,373 ~: ~____ $19 ,Transportation and Public Works 3 541 3 017.. Total Department Appropriated $24 505' $11 168 .Savings , , It is worth noting that of the net savings of $13.3M, the City plans to use $9.OM for use in the Fiscal Year 2011 budget and $5.OM for Other Post Employment Benefits (OPEB) funding. City Manager -Savings exist mainly due to scheduled temporary costs, less than anticipated costs for table/events, postage costs, IT leased costs for computer equipment and less than anticipated contractual costs for organizational/operational studies. City Secretary -Under budget primarily due to reduced personnel costs associated with vacancies as well as reduced IT leased equipment and telephone costs. Community Relations -Savings exist due to reduced personnel costs associated with vacancies, deferred vehicles purchase and reduced IT leased equipment costs. Financial Management Services -Savings exist mainly due to reduced personnel costs associated with vacancies and IT leased equipment costs. These savings are tempered by overage in contractual costs related to banking fees for Treasury and CAFR costs. Fire -Under budget primarily due to an increase in anticipated retirements in the department that is generating savings in civil service base pay and related salary accounts, and less than anticipated minor equipment and IT leased equipment. These savings are partially offset by the implementation of the Fiscal Year 2010 Fire Collective Bargaining contract, which calls for the reinstatement of Steps. Housing and Economic Development -Savings were achieved in reduced personnel costs associated with vacancies, IT leased equipment costs and consultant costs. Human Resources -Under budget primarily due to reduced personnel costs associated with vacancies and IT leased equipment costs partially offset by an overage in the contractual costs related to consultant services. Internal Audit -Savings exist mainly due to reduced consultant costs. Law -Savings exist primarily due to reduced personnel costs associated with vacancies, IT leased equipment costs and reduced utility coordination membership costs. Library -Savings exist due to reduced personnel costs associated with vacancies. This is partially offset by higher than anticipated spending for operating supplies and minor equipment. Municipal Court -Savings exist due to reduced personnel costs associated with vacancies, reduced operating supplies, equipment and IT leased equipment costs. Non-departmental -Savings occurred in this cost center for expenditure items not exclusively within the Logname: 13FY2010_CLOSING Page 3 of 5 programmatic responsibilities of any one department. Savings are the result of decisions regarding the use of budgeted funds for retiree health care. Of the $10M budgeted, $5M will be returned to the General Fund fund balance. The remaining $5M will be rolled over into the Fiscal Year 2011 operating budget and subsequently transferred to the Public Agencies Retirement Systems (PARS) and recorded as Fiscal Year 2011 contribution. In addition, the negotiation of a new electricity contract yielded savings of $1.1 M for this fiscal year. The level of participation in the vacation buy back program resulted in additional savings. These savings are offset by overage due to the decision to offer a voluntary separation program for employees eligible to retire, which is offset by savings in other General Fund departments as they hold impacted positions vacant for the remainder of the fiscal year. In addition, the savings is offset by an overage in terminal leave. Parks and Community Services -Savings exist due to reduced contractual costs, associated with timely rain in August and September and IT leased equipment costs. Planning and Development -Savings exist primarily due to reduced personnel costs associated with vacancies, office supplies, printing and binding, microfilm costs, other contractual services, reduced third party activities and IT leased equipment costs. Police -Under budget primarily due to reduced personnel costs associated with civil service vacancies, operating supplies, motor vehicle fuel, other contractual and ESD outside repair costs. Transportation and Public Works -Savings were achieved due to lower personnel costs associated with vacancies, motor vehicle fuel and repair, IT leased equipment costs and inside repair and maintenance services. These savings were offset by an overage that exists primarily due to the department's inability to meet employee's paid with bond budgeted target. Other Funds Culture and Tourism Fund is under budget by $3,822,736.00 and therefore no supplemental appropriations are needed. Crime Control and Prevention District is a separately budgeted special revenue fund. During the year, Police had budget savings of $5,752,042.00 and Parks and Community Services had savings of $399,057.00. Therefore, no additional appropriations are needed. FISCAL INFORMATION /CERTIFICATION: The Financial Management Services Director certifies that upon the approval of the above recommendations and adoption of the attached supplemental appropriation ordinance funds will be available in the current operating budgets, as appropriated, of the General Fund. Upon approval, the unaudited, unreserved, undesignated fund balances of the General Fund will exceed the minimum reserves as specified in the Financial Management Policy Statements. FUND CENTERS: TO Fund/Account/Centers CERTIFICATIONS: Submitted for City Manager's Office b~ Originating Department Head: Additional Information Contact: FROM Fund/Account/Centers Karen Montgomery (6222) Lena Ellis (8517) Walter Peoples (6217) Logname: 13FY2010_CLOSING Page 4 of 5