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HomeMy WebLinkAboutOrdinance 23936-11-2019 Ordinance No.23936-11-2019 AN ORDINANCE INCREASING APPROPRIATIONS IN THE STATE ASSET FORFEITURE FUND IN THE AMOUNT OF $584,550.00 AND DECREASING FUND BALANCE BY THE SAME AMOUNT, FOR THE PURPOSE OF MAKING A TRANSFER TO THE STATE ASSET FORFEITURE CAPITAL FUND; 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 2019-2020 in the Budget of the City Manager, there shall also be increased appropriations in the State Asset Forfeiture Fund in the amount$584,550.00 from available funds, for the purpose of transferring to the State Asset Forfeiture Capital Fund. 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 orjudgment 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 23835-09-2019 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 A GALITY: CITY SECRETARY AsF&<aatRCfty Attorney KWy J. &Wr ADOPTED AND EFFECTIVE: November 19, 2019 �-k OF FORS, S City of Fort Worth, Texas Mayor and Council Communication DATE: 11/19/19 M&C FILE NUMBER: M&C 19-0327 LOG NAME: 35FY20 AF CAPITAL CLEANUP SUBJECT Adopt Ordinances Increasing Appropriations in the Treasury Asset,Justice Asset and State Asset Forfeiture(Operating)Funds in Support of Prior Year Capital Appropriations and Adopt Ordinances Adjusting Appropriations in Corresponding Capital Funds to Convert from Static to Programmable Projects for the Purchase of Equipment for the Police Department(ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached ordinance, increasing appropriations in the Treasury Asset Forfeiture(Operating)Fund by$120,000.00 and decreasing fund balance by the same amount for the purpose of making a transfer to a previously appropriated capital project for which a transfer was not made; 2. Adopt the attached ordinance,increasing appropriations in the Justice Asset Forfeiture(Operating)Fund by$427,346.00 and decreasing fund balance by the same amount for the purpose of making a transfer to a previously appropriated capital project for which a transfer was not made; 3. Adopt the attached ordinance, increasing appropriations in the State Asset Forfeiture(Operating)Fund by$584,550.00,decreasing fund balance by the same amount for the purpose of making transfers to previously appropriated capital projects for which transfers were not made; 4. Adopt the attached ordinance adjusting appropriations in the Treasury Asset Forfeiture Capital Fund by decreasing receipts and appropriations in the Treasury AF Equipment project by$183,066.00 and increasing receipts and appropriations in the Equipment-Police programmable project by$120,000.00,which reflects the amount actually available; 5. Adopt the attached ordinance adjusting appropriations in the Justice Asset Forfeiture Capital Fund by decreasing receipts and appropriations in the Justice AF Equipment project by$427,346.00 and increasing receipts and appropriations in the Equipment-Police programmable project by the same amount;and 6.Adopt the attached ordinance adjusting appropriations in the State Asset Forfeiture Capital Fund by decreasing estimated receipts and appropriations in the State AF Equipment project by$125,905.93 and increasing estimated receipts and appropriations in the Equipment-Police programmable project by the same amount. DISCUSSION: The purpose of this Mayor and Council Communication(M&C)is to take actions to clean up the budgets and associated transfers for various asset forfeiture funds and capital projects relating to actions authorized and taken in prior fiscal years. Operating Appropriations and Unexecuted Transfers In September 2015,the City Council adopted appropriation ordinances increasing the Treasury Asset Forfeiture(Operating)Fund and the Treasury Asset Forfeiture Capital Fund by$183,066.00, increasing the Justice Asset Forfeiture(Operating)Fund and the Justice Asset Forfeiture Capital Fund by$427,346.00 and increasing the State Asset Forfeiture(Operating) Fund and State Asset Forfeiture Capital Fund by$584,500.00 (M&C G-18566). Because the FY2015 adopted budget ordinance did not provide staff delegated authority to make the transfers between the operating funds and their capital counterparts and the transfers were not explicitly authorized by the M&C,no transfer was actually made from the operating funds. When FY2015 ended,the money that had been appropriated in the operating funds was considered unencumbered and returned to fund balance in accordance with the City Charter,and it is too late to re-open FY2015 to correct the problem in the fiscal year in which it occurred. In addition,in December 2015(FY2016),the City Council approved an M&C that appropriated and authorized transfer of$127,950.00 for another project associated with the State Asset Forfeiture funds. However,due to manual error,only$127,900.00 was actually transferred. When FY2016 closed,the untransfered$50.00 of operating appropriation was also swept back to fund balance. Capital Apropriations Although the FY2015 capital fund appropriations were not supported by the actual transfer of revenues and the FY2016 appropriation was under supported by$50.00,the total appropriations noted above in each capital fund were established as static projects. Because capital appropriations are considered to be life-of-project,they are treated as encumbered at year end and roll from one fiscal year to the next. A portion of the FY2015 State Asset Forfeiture Capital Fund appropriation($458,594.07)was actually spent. The purpose of this M&C is to re-appropriate funds on the operating side in the current fiscal year,to the extent available,for purposes of making transfers to support and balance the unfunded 2015 capital appropriations,which remain active up to this point. (Note:this M&C reflects the reduction of the Treasury capital appropriation to the extent operating funds are not available to support it,as described below.)Once the operating revenues are reappropriated and actually transferred,the prior static appropriations will be funded and available. However,due to the limitations of static projects,staff is recommending those static projects be reconstituted as programmables which are more flexible and which is accomplished through the adoption of recommendations 4-6. Corrective Actions for Justice and State Operating Funds. Approval of recommendations two and three and adoption of the associated attached ordinances will re-appropriate$427,346.00 in the Justice Asset Forfeiture(Operating) Fund,and$584,550.00 in the State Asset Forfeiture(Operating) Fund for the purpose of making transfers to their respective Asset Forfeiture Capital Funds in support of the previously appropriated but unfunded projects. The current year's adopted budget ordinance provides delegated authority to make budgeted transfers;therefore,separate explicit authority for the transfers is not needed. Corrective Actions for Treasury Operating Fund. As noted above,the operating fund for Treasury does not have sufficient fund balance in the current year to cover the full amount associated with the 2015 capital appropriation($183.066). Approval of recommendations one and four will re-appropriate dollars on the operating side to the extent they are available($120,000)for the Treasury fund transfer and revise the associated captial appropriations accordingly. As noted,separate explicit authority for the transfers is not needed as it is provided by the adopted budget ordinance. Converting Balance of Capital Projects to Programmable As of today's date,the Justice Asset Forfeiture Capital Fund project created in FY2015 has an unspent balance of$427,346.00,and the State Asset Forfeiture Capital Fund project from that year has an unspent balance of$125,905.93. Following adoption of recommendation 1 the Treasury Asset Forfeiture Capital Fund project will have$120,000 actually available. Approval of recommendations 4-6 of this M&C would deappropriate the 2015-created static capital projects(to the extent unexpended)and reappropriate available funds as programmable projects.These projects will fund the purchase of Police capital equipment, including that used by specialized units such as Gang, Narcotics,SWAT,etc.in accordance with the identified needs of the department and with the Federal and State statutes and guidance governing these funds. These projects are located in all Council Districts. A Form 1295 is not required because: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 adoption of the attached appropriation ordinances,funds will be available in the current budget,as appropriated,of the Treasury Asset Forfeiture Fund,Treasury Asset Forfeiture Capital Fund,Justice Asset Forfeiture Fund,Justice Asset Forfeiture Capital Fund, State Asset Forfeiture Fund,and State Asset Forfeiture Capital Fund. Prior to an expenditure being incurred,the Police Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office by: Jay Chapa 5804 Originating Business Unit Head: Ed Kraus 4231 Additional Information Contact: Kristina Ashton 4224