HomeMy WebLinkAboutOrdinance 19437-11-2010 Ordinance No. 19437-11-2010
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE GENERAL FUND IN THE AMOUNT OF $5,000,000.00, AND DECREASING THE
UNAUDITED, UNRESERVED UNDESIGNATED GENERAL FUND FUND BALANCE BY
THE SAME AMOUNT, FOR THE PURPOSE OF TRANSFERRING SAID FUNDS TO THE
PUBLIC AGENCIES RETIREMENT SERVICES RETIREE HEALTH CARE; 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
General Fund in the amount of $5,000,000.00 and decreasing the unaudited, unreserved, undesignated
General Fund fund balance, for the purpose of transferring said funds to the Public Agencies Retirement
Services Retiree Health Care.
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ordinances and appropriations are hereby expressly repealed.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:
JCL ��/✓
As istant City A y
ADOPTED AND EFFECTIVE: November 16, 2010
City of Fort Worth, Texas
Mayor and Council Communication
CQUNCIt AC N approved ort 11/16/2a1ft` - C rct Na, 1s4 7-11- f#.10=
DATE: Tuesday, November 16, 2010 REFERENCE NO.: G-17117
LOG NAME: 130PEB TRUST 2011
SUBJECT:
Adopt an Appropriation Ordinance Increasing Appropriations in the General Fund in the Amount of
$5,000,000.00 and, Decreasing the Unreserved, Undesignated General Fund Balance by the Same
Amount, and Authorize the Transfer of$5,000,000.00 for Fiscal Year 2010 to the Public Agencies
Retirement Services for Retiree Health Care
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached appropriation ordinance increasing appropriations in the General Fund in the
amount of$5,000,000.00 and decreasing the unreserved, undesignated General Fund balance by the
same amount; and
2. Authorize the transfer of$5,000,000.00 to the Public Agencies Retirement Services Retiree Health
Care for Fiscal Year 2010.
DISCUSSION:
With the implementation of a new accounting rule, Government Accounting Standards Board Statement
45 (GASB 45), the City has begun accounting for its Other Post Employment Benefits (OPEB), which
includes the City's retiree healthcare and death related benefits.
To address the City's future liability, on September 17, 2008 the City Council adopted Ordinance No.
18287-09-2008 providing that the City will not contribute to the cost of health benefits offered upon
retirement to employees hired on or after January 1, 2009 or their dependents. On August 18, 2009, the
City Council approved (M&C C-23730)adopting the Public Agencies Retirement Services Health Care
Plan Trust(the PARS Trust) as part of the City's program of benefits in order to provide a funding source
for retiree health care benefits.
In Fiscal Year 2009, $5 million was budgeted, and these funds were later transferred into the PARS Trust
from the General Fund via M&C C-23730. In Fiscal Year 2010, $15,194,768.00 was budgeted. This
included $5,194,768.00 from other funds and $10 million from the General Fund. The $15,194,768.00
million contribution was necessary as the City was initially pursuing a five year funding strategy. Based on
guidance from the City's Financial Advisers, Council approved a 20 year funding horizon through the
adoption of Resolution 3921-09-2010 on September 21, 2010. It was titled, "A Resolution Approving the
20 Year Funding Plan for Retiree Healthcare Benefits for City of Fort Worth Eligible Retirees". Thus, the
Fiscal Year 2010 funding plan was revised, and $5,194,768.00 was transferred into the PARS Trust from
the Other Funds via M&C G-17058, which was approved on September 21, 2010. Of the remaining $10
million, $5 million will be transferred into the PARS Trust for the Fiscal Year 2011 City's contribution, with
the approval of this communication. During the Fiscal Year 2011 budget deliberations, staff was directed
Logname: 130PEB TRUST 2011 Page 1 of 2
to use the remaining $5 million to balance the budget and fund critical service reductions.
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 General 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
GG01 518970 0905501 $5,000.000.00 GG01 518970 0905501 $5,000,000.00
T140 472001 0148500 $5,000,000.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Montgomery Karen (6222)
Originating Department Head: Lena Ellis (8517)
Additional Information Contact: James Mauldin (2438)
Logname: 130PEB TRUST 2011 Page 2 of 2