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HomeMy WebLinkAboutOrdinance 20114-03-2012Ordinance No. 20114 -03 -2012 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GENERAL FUND IN THE AMOUNT OF $1,678,346.00, AND DECREASING THE UNAUDITED, UNASSIGNED GENERAL FUND BALANCE BY THE SAME AMOUNT, FOR THE PURPOSE OF FINALIZING THE FISCAL YEAR 2011 BUDGET; 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 2011 -2012 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the General Fund in the amount of $1,678,346.00, and decreasing the unaudited, unassigned General Fund balance by the same amount, for the purpose of finalizing the Fiscal Year 2011 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.19911 -09 -2011 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: -AA, I A A il Assistant 91 Attorney �DOP'I1:D ,AND FFFF:(' "I1VF.: March 20-2012 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 3/20/2012 Ordinance No. 20114 -03 -2012 DATE: Tuesday, March 20, 2012 LOG NAME: 13FY2011 CLOSING REFERENCE NO.: G -17550 SUBJECT: Adopt Supplemental Appropriation Ordinance in the Amount of $1,678,346.00 for Fiscal Year 2011 Year End Budget Adjustments and Decrease Unaudited, Unassigned General Fund Balance by the Same Amount (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council adopt the attached supplemental appropriation ordinance increasing appropriations for Fiscal Year 2011 by $1,678,346.00 in the General Fund departments that are over budget and decreasing the unaudited, unassigned 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 Mayor and Council Communication is to provide the City Council with the final balanced budget, per the audit, for the year ending September 30, 2011. This process begins with the recording of all expenditures from October 1, 2010 to September 30, 2011 plus all expenditures found posted to the Fiscal Year 2012 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. Below is a brief explanation of the activity that caused the Police Department to exceed their budget: GENERAL FUND DEPARTMENT ADDITIONAL APPROPRIATIONS' Police $1,678,346.00 Total General Fund $1,678,346.00 The Police Department overage is primarily due to lower than projected vacancy savings, higher than projected overtime for the Super Bowl, and payroll administration, and higher than projected fuel costs. This is partially offset by savings in contractual services due to the scaled down operation at the Auto Pound. While this Mayor and Council Communication concentrates on the departments that need additional Logname: 13FY201 1—CLOSING Page 1 of 4 appropriations, it is also appropriate to note that Fiscal Year 2011 revenues and other financing sources were more than the estimated amount in total as follows: 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 2011 -2012. 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. For Fiscal Year 2011 -2012 supplemental appropriation ordinance (M &C G- 17464) was approved on December 31, 2011 for rollover encumbrances in the amount of $5,515,118.00 for the General Fund. APPROPRIATED, ENCUMBRANCE (000's FAVORABLE REVENUES AND Omitted) ROLLOVER City Manager $115,213.00 $27,740.00 (UNFAVORABLE) OTHER FINANCING SOURCES ACTUAL BUDGET VARIANCE General Property Taxes $285,525.00 $284,632.00 $893.00 Sales Taxes $105,583.00 $96,351.00 $9,232.00 .Other Local Taxes $8,572.0& $8,803.00 $(231.00) Charges for Services $21,550.00; $23,627.00 $(2,077.00) Licenses and Permits $50,839.00 $42,805.00 $8,034.00 Fines and Forfeitures $15,997.00; _.. $16,399.00. $(402.00) Use of Money and Property $7,226.00€ $5,138.00, $2,088.00 Intergovernmental g $1,280.00 $1,260.00 $20.00 Other Revenues 3 $5,011.00; $3,347.00 $1,664.00 Transfers In - Other Funds $64,389.00; $45,794.00 $18,595.00 Intea -Fund Transfers In $1,805.00. $1,600.00 205.00 Total Revenues $567,777.00$ 529,756.00 $38,021.00 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 2011 -2012. 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. For Fiscal Year 2011 -2012 supplemental appropriation ordinance (M &C G- 17464) was approved on December 31, 2011 for rollover encumbrances in the amount of $5,515,118.00 for the General Fund. Logname: 13FY201 1—CLOSING Page 2 of 4 APPROPRIATED, ENCUMBRANCE DEPARTMENT SAVINGS ROLLOVER City Manager $115,213.00 $27,740.00 City Secretary $34,296.00 $0.00 Code Compliance $533,517.00 $449,536.00 Financial Management Services $737,148.00 $100,000.00 Fire $2,113,857.00 $170,932.00 Housing and Economic Development $193,295.00 $0.00 Human Resources _ $544,763.00 $0._00 Office of the City Auditor $61,484.00 $138,465.00 Legal $624,948.00 $113,290.00 Library $1,082,291.00 $23,000 Municipal Court $1,220,178.00 $136,916.00 Non - Departmental $7,982,228.00 $622,379.00 Parks and Community Services $2,912,645.00 $290,840.00 Planning and Development $573,891.00 $99,932.00 Logname: 13FY201 1—CLOSING Page 2 of 4 Police Transportation and Public Works Total Department Appropriated Savings and Encumbrances $0.00 $149,420.00 $5,438,366.00 $3,192,668.00 $24,168,120.00 $5,515,118.00 City Manager - Savings are primarily due to reduction in travel, other contractual, consulting and professional services for one time funding for 2011 legislative session. City Secretary - Savings are primarily due to reduced personnel costs associated with vacancies as well as advertising costs. Code Compliance - Savings are primarily due to personnel costs associated with vacancies, lower than anticipated mowing costs due to weather, and lower than anticipated costs for cleanups due to use of community service workers rather than contractors. Financial Management Services - Savings are primarily due to lower than anticipated costs for contractual services associated with accounting and other areas of financial management and reduced contractual services for bank fees. Fire - Savings are primarily due to a mid -year reduction in expenditures for supplies and minor equipment, reduced personnel costs associated with vacancies, less than budgeted costs for the Super Bowl offset by higher than anticipated fuel costs. Housing and Economic Development - Savings are primarily due to a mid -year reduction in personnel costs associated with maintaining one position vacant and various contractual service items such as engineering services. Human Resources - Savings are primarily due to personnel costs associated with vacancies as well as mid -year reductions in contractual services and computer equipment. Office of the City Auditor - Savings are primarily due to personnel costs associated with vacancies as well as consulting and other professional services which are partially offset by lower than anticipated personnel reimbursements from capital projects and grants. Legal - Savings are primarily due to mid -year reduction in personnel costs associated with maintaining two positions vacant and various contractual service items such as outside legal services, dues and memberships. Library - Savings are primarily due to the mid -year reductions in personnel costs, unforeseen vacancies and contractual services. Municipal Court - Savings are primarily due to lower personnel costs associated with vacancies and lower needs for contractual services. The main driver of these savings is the delay in opening the Southwest Municipal Court. The positions approved to staff the new court were held vacant until the facility opened in July 2011. These savings are partially offset by higher operating costs due to the remodeling and setup of the new Southwest Municipal Court facility. Non - departmental - Savings occurred in this cost center for expenditure items not exclusively within the programmatic responsibilities of any one department. Savings are primarily due to electricity costs as a Logname: 13FY2011_CLOSING Page 3 of 4 result of the negotiation of the new electricity contract. Also savings were realized from funds ($5M) that were appropriated for the Other Post Employment Benefits (OPEB) contribution but were not required since it was transferred via the rollover Mayor and Council Communication. Additional savings are due to the mid -year reduction in retiree insurance but the savings were offset by higher than anticipated other contractual costs. Parks and Community Services - Savings are primarily due to mid -year reductions in personnel costs, chemical, agricultural and other supply costs and vehicle deferrals, and additional reduced costs for non - replacement of computer equipment, foregoing equipment repairs in favor of waiting on scheduled replacements and weather related savings for parkland maintenance and contractual mowing. Planning and Development - Savings are primarily due to mid -year reductions in personnel costs, vehicle deferrals, printing and binding, IT and ESD charges. Transportation and Public Works - Savings are primarily due to mid -year reductions for personnel costs and vehicle deferrals, and savings realized from Super Bowl costs, the alleyway and bridge maintenance program, decreased vehicle repair costs and foregoing equipment repairs in favor of waiting on scheduled replacements. Other Funds Culture and Tourism Fund is under budget by $1,549,590.00 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 $3,144,113.00 and Parks and Community Services had savings of $241,162.00. 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, unassigned fund balance 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 by: Originating Department Head: Additional Information Contact: FROM Fund /Account/Centers Susan Alanis (8180) Lena Ellis (8517) Jennifer Fung (8325) Logname: 13FY201 1—CLOSING Page 4 of 4