HomeMy WebLinkAbout(0005) IR 10298 - 8 Month Revenue and Expense Budget ForecastINFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 10298
To the Mayor and Members of the City Council August 13, 2019
Page 1 of 4
SUBJECT: FY2019 EIGHT -MONTH REVENUE AND EXPENSE BUDGET
aVA FORECAST
V City Forecast Process
The City conducts formal forecasts of revenues and expenditures after month 5 (M5) and month 8 (M8)
of each fiscal year. The forecasts are intended to assist in developing the next year's budget and
identifying any issues that need to be addressed during the current fiscal year. Outside of the formal
forecast process, departments monitor their budget performance regularly to ensure they stay within
the adopted budget.
General Fund FY2019 M8 Forecast
The General Fund M8 Forecast shows a potential surplus of $5M. Revenues are projected to be
approximately $4.5M higher, primarily attributed to higher electricity franchise fees and sales tax
revenue. Expenditures are projected to be under budget by $500k, shown below:
Projected
Department Savings/(Deficit)
City Attorney
0
City Auditor
8.930
City Managers Office
0
City Secretary
0
Code Compliance
0
Communications & Public Engagement
g
Economic Development
(4.078.980)
Financial Management
g
Fire Department
(1.374:7011
Human Resources
g
IT Solutions
57.08
Library
1,397,964
Municipal Court
512,858
Neighborhood Services
(24.53)
Park and Recreation
8
Performance and Budget
22,975
Planning & Development
391,571
Police Department
g
Property Management
0
Transportation & Public forks
g
Non -Departmental
4.01.137
Total
$5681723
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 10298
To the Mayor and Members of the City Council August 13, 2019
0
r Page 2 of 4
� SUBJECT: FY2019 EIGHT -MONTH REVENUE AND EXPENSE BUDGET
rt rn FORECAST
Y@7'3
Below are explanations on any significant variances between forecast and budget:
DEFICITS
Economic Development — Higher economic development incentives than anticipated due to
accelerated development related to Facebook.
Fire Department — Fleet costs are higher than anticipated, partially attributed to the delayed
implementation of a change in the City's self-insurance program.
Neighborhood Services — Costs associated with the privatization of the Cowboy Santa
program.
SURPLUS
Library — Delayed opening of the Golden Triangle Library.
Non -Departmental — Less separation leave forecasted than budgeted.
Special Revenue Funds' FY2019 M8 Forecast
Special
Current Budget
Month 8 Forecast
- in Fund
Balance
Fund
Revonues
FxpondifuiresBudget
r -
AllianceMaintenanceFacilitv
$2,548,5281,
$6,197476
$478882625i
$5,288,205
$2,340,097i
$000,271
($37648,948);
($399.580)
Botanic Garden
$5,683,8321,
$6,233,832
$5,572,297:
$6,323,771
($111,535}1
($89,939)
($550,000);
($751,474)
Culture & Tourism
$41.722.215I
$41,722,215
$43.839.866;
$41.345A18
$2.117.651 i
$379,297
$0
$2,493,948
Culture &Tourism 2% Hotel
$6,764,802',
$7,928,328
$6,959,933i
$7,928,323
$195,131
$0
($171537526)
($968,395)
C & T- VFW Rev Sharing
$5,900,000',
$6,361,539
$6,190,3201
$6,361,589
$290,320
$0
($461,589)
($171 209)
C&T- ProjectFinanceZone
$4,971,5761,
$4,571,784
$6,769,739i
$4,571,184
$1,798,163i
$0
$399,792
$2,197,955
Community Tree PlantingProq
$400,000',
$400,000
$83776721:
$400,000
$437,572i
$0
$0
$437,872
Crime Control &PrevDisirict
$82,893,917',
$82,632,586
$83,884,1261
$81,007,146
$99Q209
$1,625,440
$261,331
$2,876,980
Environmental Protection
$3.868.921',
$3.969.857
$4,327,460;
$4,104.412
$458,539;
1134,555)
($100,936)i
$223,043
Municipal Golf
$5,276,70211
$5,278,702
$4,578,534
$4,706,373
($698,168}
$570,329
$0
($127,839)
Red Light Enforcement Program
$10,290,271I,
$10,290,271
$5,819,993;
$7,690,129
($4.470.278)
$2,600,142
$0
($1,870,136)
Alliance Maintenance Facility — The budget was adopted based on the prior level of revenue and
agreements in place at that time. Subsequent agreements have significantly increased revenues to
reduce the use of fund balance estimated at $400k. This higher level of revenue is also anticipated in
FY2020. The fund is forecasted to be in compliance with fund balance reserve requirements.
Botanic Gardens Fund — Anticipated to be over budget due to the additional pension contributions
which were enacted in FY2019. The additional expenditures along with the lower revenues will
increase the use of fund balance to an estimated $750k. The fund is forecasted to be out of
compliance with fund balance reserve requirements.
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 10298
To the Mayor and Members of the City Council August 13, 2019
Page 3 of 4
SUBJECT: FY2019 EIGHT -MONTH REVENUE AND EXPENSE BUDGET
aVA FORECAST
Culture & Tourism Funds — Revenues in all funds have exceeded budget and result in
approximately $4.8M additional fund balance collectively than budgeted. The fund is forecasted to be
in compliance with fund balance reserve requirements.
Environmental Fund - Over budget due to retirement and some additional environmental clean-up
costs associated with City facilities. The Environmental Fund had additional revenues that will offset
the aforementioned costs. The fund is forecasted to be in compliance with fund balance reserve
requirements.
Municipal Golf Fund - Forecasted to have a net loss of $430k, this loss will have to be covered by
the General Fund if the forecast holds through the remainder of the year. The fund is forecasted to
be out of compliance with fund balance reserve requirements.
Red Light Enforcement Fund - Will be closed in FY2019 as a result of the recent State Legislative
Session and residual funds will be transferred to the General Fund to be utilized for traffic safety
improvements.
Proprietary Funds' FY2019 M8 Forecast
No proprietary funds are anticipated to be over budget.
Fleet Services Fund is forecasted to be in compliance with both reserve requirements.
Group Health & Retiree Trust Funds - Forecasted less revenue and expenditures associated with
the transition of the Local 440 Firefighters Health Plan. Furthermore, plan changes have currently
reduced the claims within these funds.
Municipal Parking Fund is forecasted to be in compliance with all three reserve requirements.
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 10298
To the Mayor and Members of the City Council August 13, 2019
0
r Page 4 of 4
� SUBJECT: FY2019 EIGHT -MONTH REVENUE AND EXPENSE BUDGET
rrn FORECAST
Y@7'3
Solid Waste Fund - Significant revenue shortfall associated with reduced recycling revenues
(-r$3.3M) along with increased recycling costs, contract collection costs and other customary cost
increases over time. A consultant has been hired and is already working on evaluating contracts,
contractor performance, best practices, opportunities for system adjustments, etc. A plan to correct
this imbalance will be presented to the City Council in the fall of 2019. The fund is forecasted to be
out of compliance with one of the three reserve requirements.
Stormwater Fund — The FY2019 Adopted Budget included the planned use of net position for
additional pay as you go capital projects included in the 2019 — 2023 Capital Improvement Plan. The
fund is forecasted to be in compliance with all three reserve requirements.
Water & Sewer Fund - Forecasted less revenues due to current water usage and expenses have
been reduced to account for the lower revenues.
Wind -Up M&C
Actions needed based on the M8 forecast will be taken on August 27t" in the FY2019 Wind -Up M&C.
This M&C will include the budget adjustments needed to rectify the items identified above and
address any other known budgetary issues.
Future Reporting
Moving forward, the Performance & Budget Department will provide an informal report to the City
Council after the M5 and M8 forecasts. In addition, an informal report on the year-end budget
performance will be provided to the City Council late November or early December each year.
If you have any questions, please call Terry Hanson, Assistant Director Performance & Budget, at
817-392-7934.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS