HomeMy WebLinkAboutOrdinance 19386-10-2010 Ordinance No. 19386-10-2010
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE GRANTS FUND IN THE AMOUNT OF $828,500.90, FROM AVAILABLE FUNDS,
FOR THE PURPOSE OF DECREASING FEDERAL GRANT FUND RECEIVABLES;
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 2010-2011 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Grants Fund in the amount of$828,500.90, from available funds, for the purpose of decreasing the federal
grant fund receivables.
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.19355 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ordinances and appropriations are hereby expressly repealed.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 City Attorney
ADOPTED AND EFFECTIVE: October 5. 2010
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1015/2010. - Res. No' 3925-10-2010, Ord. Nos. 19385.10-
2010 & 19386-10-2010
DATE: Tuesday, October 05, 2010 REFERENCE NO.: G-17077
LOG NAME: 1717HEDESCROW3
SUBJECT:
Adopt a Resolution to Change the City's Consolidated Program Year from June 1 - May 31 to October 1 -
September 30 to coincide with the City 's Fiscal Year, Adopt a Supplemental Appropriation Ordinance
Increasing Appropriations in the General Fund by $828,500.90 and Decreasing the Unreserved,
Undesignated General Fund Balance by the Same Amount, Authorize Transfer from the General Fund to
the Grants Fund to Decrease the Federal Grant Funds Receivable, and Adopt a Supplemental
Appropriation Ordinance Increasing Appropriations in the Grants Fund by $828,500.90
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to:
1. Adopt a Resolution requesting the United States Department of Housing and Urban Development to
change the City's Consolidated Program Year from June 1 — May 31 to October 1 —September 30.
2. Adopt the attached supplemental appropriation ordinance increasing appropriations in the General
Fund in the amount of$828,500.90 and decreasing the unreserved, undesignated General Fund balance
by the same amount.
3. Authorize the transfer of$828,500.90 from the General Fund to the Grants Fund to decrease the
federal grant funds receivable.
4. Adopt the attached supplemental appropriation ordinance increasing estimated receipts and
appropriations in the Grants Fund by $828,500.90 from available funds.
DISCUSSION:
The City has received funds from the United States Department of Housing and Urban
Development (HUD) for activities to assist low to moderate income City residents since the
1970s. As a condition of receiving these funds, HUD conducts audits of the City's programs to
identify areas that can be improved or corrected and reviews policies and procedures that may
need to be changed and adopted.
Staff believes that it will assist the City in its performance of its contractual obligations to HUD
to change the City's Consolidated Program Year to coincide with the City's fiscal year.
Currently the HUD grant program year runs from June 1 through May 31. Staff recommends
changing this to October 1 through September 30, the City's fiscal year. This change will allow
the City Council to review the HUD grant budget at the same time as the City budget, and the
grant year will close out at the same time as the City's financial year.
Logname: 1717HEDESCROW3 Page 1 of 2
In addition, staff is recommending closing HUD grant activities that are ineligible for federal
funding. Currently the City has 385 open HUD activities from 1995 to the present. Of the 385
activities, 174 are associated with activities prior to 2007. A majority of these open projects are
either awaiting completion, are pending Model Block programs, or are activities with HUD audit
findings from monitoring.
Of the 385 open activities, 138 cannot be closed because of insufficient documentation or
project ineligibility under federal rules. The amount of City funds expended for the 138 activities
is $828,500.90 but the City cannot be reimbursed with federal funds because of the
documentation and eligibility issues. These outstanding reimbursements are currently booked
in the City's accounting system as receivables. Staff recommends closing these activities in the
HUD financial system and decreasing the receivables by $828,500.90 and decreasing the
unreserved, undesignated General Fund Balance by the same amount. This action will close
138 pending activities and allow the City to redirect the previously tied up federal funds on new
eligible grant activities that can then be reimbursed by HUD.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above
recommendations and adoption of the attached supplemental appropriation ordinance, funds
will be available in the current operating budget as appropriated, of the Grants Fund. Upon
approval, the unreserved, undesignated fund balance of the General Fund will exceed the
minimum reserve as outlined in the Financial Management Policy Statements.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
2) GG01 538070 0905500 $828.500.90 3)GG01 538070 0905500 $828.500.90
3)GR76 472001 XXX206XXXXXX $828,500.90
4) GR76 472001 XXX206XXXXXX $828,500.90
4) GR76 539120 XXX206XXXXXX $828,500.90
CERTIFICATIONS:
Submitted for City Manager's Office by: Thomas Higgins (6192)
Originating Department Head: Jay Chapa (5804)
Additional Information Contact: Socorro "Coy" Gray (6203)
Logname: 1717HEDESCROW3 Page 2 of 2