HomeMy WebLinkAboutOrdinance 23558-02-2019Ordinance No. 23558-02-2019
AN ORDINANCE ADJUSTING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
IDENTIFIED FUNDS BY THE AMOUNTS SHOWN FOR THE PURPOSE OF BRINGING
ALL FUNDS INTO BALANCE AND FACILITATING FISCAL YEAR 2018 CLOSING;
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 those amounts allocated to the various City departments for Fiscal Year 2017-2018 in the Budget of the
City Manager shall be subject to adjustments in estimated receipts and appropriations as follows:
o Increase in the General Fund of $2,322,900.00 for the following departments:
• City Attorney $23,418.00;
■ Police $1,976,539.00;
■ Fire $322,943.00; and
■ Park and Recreation $13,442.00.
o Decrease in the Non -Departmental center of the General Fund by $2,336,342.00 to reflect savings
from projected operational expenses due to delayed implementation of pension changes and lower
than expected separation pay.
SECTION 2.
That receipts and appropriations in the Fleet and Equipment Service Fund shall be increased in the amount
of $701,593.00 from higher than budgeted revenues.
SECTION 3.
That receipts and appropriations in the Crime Control and Prevent District Fund for Fiscal Year 2017-2018
are revised to correct a clerical error, resulting in no impact to the fund, programs, or initiatives, and to reflect
the following departmental budgets:
■ Park and Recreation $1,102,158.00; and
■ Neighborhood Services $744,534.00.
SECTION 4.
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 5.
That this ordinance shall be cumulative of Ordinance 22927-09-2017 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said prior ordinances and appropriations are hereby expressly repealed.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 6.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
'An B. Strong
ADOPTED AND EFFECTIVE: February 5. 2019
CITY SECRETARY
Mary J. Kiy r
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION. Appreved on 215f2 19 - Ordinance Nca . 23556-02-2C i9, 2355 '-02-2019
& 23558-02-2019
DATE: Tuesday, February 5, 2019
LOG NAME: 03FY2018 CLOSING
REFERENCE NO.: **G-19471
SUBJECT:
Adopt Ordinances Adjusting Appropriations in Various Funds and Amounts to Bring Revenues and
Expenditures into Balance for the Capital and Operating Budgets for Fiscal Year 2018 to Facilitate Fiscal
Year Closeout; Authorize Transfer to Offset Shortfall in Municipal Golf Fund; Authorize Commitment of
Funds to Support a Rollover; and Adopt Appropriation Ordinance for a Rollover in the Amount of
$200,000.00 to Fund Studies Related to Pension (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance amending Fiscal Year 2018 (FY2018) operating budget by adjusting
receipts and appropriations in various funds as described below to bring receipts and expenditures into
balance in order to finalize and facilitate year-end closure and audit following the 03FY2018 WINDUP:
a. Increase appropriations in the following General Fund Departments budgets by a combined
$2,336,342.00:
i. City Attorney Department by $23,418.00;
ii. Police Department by $1,976,539.00;
iii. Fire Department by $322,943.00; and
iv. Park and Recreation Department by $13,442.00.
b. Reduce the Non -Departmental budget in the General Fund by $2,336,342.00 to reflect savings
from projected operational expenses due to delayed implementation of pension changes and lower than
expected separation pay.
c. Increase estimated receipts and appropriations in the Fleet & Equipment Services Fund by
$701,593.00 from higher than budgeted revenues; and
d. Amend the Crime Control and Prevention District Fund to correct departmental budgets that were
incorrectly identified.
2. Authorize a transfer from the Park and Recreation Department to the Municipal Golf Fund in the amount
equal to the lesser of $13,422.00 or the actual year-end negative fund balance in the Municipal Golf Fund.
3. Adopt the attached ordinance amending the Fiscal Year 2018 (FY2018) capital budget by adjusting
receipts and appropriations in various funds as described below to bring receipts and expenditures into
balance in order to finalize and facilitate year-end closure and audit:
a. Decrease estimated receipts and appropriations in the Culture and Tourism Cap Projects Fund by
Logname: 03FY2018 CLOSING Page 1 of 4
$200,000.00 for the new Will Rogers Memorial Center Arena project based on actual revenue received for
funding of the project.
4. Authorize the commitment of Fiscal Year 2018 fund balance in the amount of $200,000.00 of the
General Fund for contractual commitments of the Human Resources Department for rollover into Fiscal
Year 2019. And
5. Adopt the attached supplemental appropriation increasing estimated receipts and appropriations in the
General Fund, Human Resources Department, in the amount of $200,000.00 in Fiscal Year 2019, and
decreasing the unaudited fund balance of the General Fund by the same amount, from the rollover of
surplus funds from Fiscal Year 2018 in order to fund contractual commitments related to Pension.
DISCUSSION:
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 operation.
The purpose of this Mayor and Council Communication (M&C) is to adjust the final budget to reflect actual
performance for the year ending September 30, 2018. Any amounts over budget must be appropriated by
action of the City Council, in accordance with the City Charter (Chapter X, Section 5, Expenditures Only
Pursuant to Appropriations). This action represents the final step before the external audit can be
completed and the Comprehensive Annual Financial Report published after the wind up M& C approved
by City Council on Tuesday, September 18, 2018.
Appropriations reflected in the attached ordinances include increased appropriations in the budgets of
certain departments to offset excess expenditures, with the total amount of all increased appropriations
offset by a reduction in the non -departmental budget in the General Fund. Below is a brief explanation of
the activity that caused deviations from the adopted budget::
Spending in Excess of Appropriated Budget and Offset by Savings in Other Departments
GENERALFUND
Department Additional Appropriations
City Attorney Department $23,418.00
Reason: The deficit is primarily due to higher than forecasted health insurance election costs.
Police Department $1,976,539.00
Reason: Higher than budgeted expenditures are predominantly related to civil service payroll and
separation leave.
Fire Department $322,943.00
Reason: Repair & maintenance costs exceeded original forecasted amounts as well as higher than
anticipated fuel oil and lubricant associated with operation of vehicles and equipment.
Park and Recreation Department $13,442.00
Reason: Provide a transfer to the Municipal Golf Fund to eliminate a negative fund balance attributed to
lower than anticipate golf revenues.
Note on Overall General Fund Performance: After the above -outlined increases are made, the Actual
Revenues in the General Fund will still exceed Expenditures, resulting in a net contribution to fund
balance of approximately $16 million on a budgetary basis.
Logname: 03FY2018 CLOSING Page 2 of 4
Spending in Excess of Appropriated Budget and Offset by Increases in Revenue
FLEET & EQUIPMENT SERVICES FUND
Property Management Department $701,593.00
Reason: The overage is due mainly from outside repair & maintenance costs as well as fleet fuel card
purchases to facilitate fleet availability. These expenditures have direct increases in revenue to cover the
additional expense.
Transfer from General Fund
MUNICIPAL GOLF FUND
Park and Recreation Department $13,442.00
Reason: Expenditures and revenues were lower than anticipated mainly due to the delayed opening of
Rockwood Golf course. This M&C seeks authorization to transfer from the General Fund to the Municipal
Golf Fund to amend the negative balance. The General fund cumulatively across all departments has
sufficient savings in expenditures, allowing for a transfer to be made without reducing fund balance.
Amend Appropriation
CRIME CONTROL AND PREVENTION DISTRICT FUND
Reason: The budget book that was presented to the City Council for Fiscal Year 2018 reflected proposed
appropriations under the Crime Control and Prevention District (CCPD) Fund of $1,102,158.00 for the
Park and Recreation Department and $744,534.00 for the Neighborhood Services Department. The
budget ordinance (22927-09-2017) reversed those two line items. Adoption of the attached ordinance will
make a technical correction to the budget ordinance to correct that error. Because this correction does not
change any of the program or initiative based budgets that were considered and approved by the CCPD
Board, no action by that body is required. Beginning with Fiscal Year 2019, the Budget office began using
new software that automatically populates the amounts in the ordinance using data in the budget system;
so this type of human error is less likely to occur going forward.
Authorize and Increase Appropriations for a Rollover of FY2018 funds
GENERALFUND
Human Resources Department $200,000.00
Reason: Appropriated funds in Fiscal Year 2018 for contractual obligations related to the pension study
were not invoiced and paid before the end of FY2018. Since these operating dollars were not expended
before the actual end of Fiscal Year 2018, they were swept back to the General Fund's fund balance,
therefore, the rollover of funding into Fiscal Year 2019 to fulfill the contractual commitment represents re -
appropriation of previously unspent authorized dollars.
Reduction of Appropriations Due to Actual Revenue Received
CULTURE AND TOURISM CAP PROJECTS FUND
Culture and Tourism Department ($200,000.00)
Reason: Management's decision to directly appropriate interest income to debt service resulted in that
funding source not being available for this capital project as planned, resulting in total funding being less
than originally budgeted for the Will Rogers Memorial Center Arena.
Additional Closing Information
INFORMATION TECHNOLOGY FUND
Information Technology Solutions Department
Action: For informative purpose; the residual balance of the closed Information Technology Fund will be
Logname: 03FY2018 CLOSING Page 3 of 4
moved to the IT Capital Fund, per the authorization provided in M&C G-19389. The General Fund
adequately meets the reserve requirement in accordance with City Policy, therefore the remaining fund
balance of the Information Technology Fund may be used to fund capital needs.
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 recommendations and the adoption of
the attached appropriation ordinances, funds will be available in the FY2018 operating and capital budgets
as noted, and in the FY2019 operating budget for the rollover of funds, as appropriated to the various
funds.
FUND IDENTIFIERS (FIDs):
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CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Fernando Costa (8180)
Lynda Johnson (6222)
Terry Hanson (7934)
Logname: 03FY2018 CLOSING Page 4 of 4