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HomeMy WebLinkAboutOrdinance 19488-12-2010 Ordinance No. 19488-12-2010 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GENERAL FUND IN THE AMOUNT OF$10,000,000.00,AND DECREASING THE UNAUDITED, UNRESERVED, UNDESIGNATED GENERAL FUND FUND BALANCE BY THE SAME AMOUNT, FOR THE PURPOSE OF TRANSFERRING SAID FUNDS TO THE CAPITAL PROJECTS RESERVE 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 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 $10,000,000.00, and decreasing the unaudited, unreserved, undesignated General Fund fund balance by the same amount, for the purpose of transferring said funds to the Capital Projects Reserve 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 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: AssistanIly Attorney ADOPTED AND EFFECTIVE: December 14, 2010 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 12/1412010 - Ord. No. 19488-12-2016-& 19489.12.-20,' DATE: Tuesday, December 14, 2010 REFERENCE NO.: G-17155 LOG NAME: 13CAPITAL TRANSFER SUBJECT: Adopt Supplemental Appropriation Ordinances in the General Fund by $10,000,000.00 and in the Workers' Compensation Insurance Fund by $5,000,000.00, and Decreasing the Unaudited, Unreserved, Undesignated Fund Balances by the Same Amount RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached supplemental appropriation ordinance in the General Fund in the amount of $10,000,000.00 and decreasing the unaudited, unreserved, undesignated General Fund balance by the same amount; 2. Adopt the attached supplemental appropriation ordinance in the Workers' Compensation Insurance Fund in the amount of$5,000,000.00 and decreasing the unaudited, unreserved, undesignated Workers' Compensation Fund balance by the same amount; and 3. Authorize the transfer of$10,000,000.00 from the General Fund and $5,000,000.00 from the Workers' Compensation Insurance Fund to the Capital Projects Reserve Fund for the purpose of funding high- priority captial projects. DISCUSSION: In conjunction with the adoption of the Fiscal Year 2011 Adopted Budget, staff was directed by the City Council to transfer$15,000,000.00 to the Capital Projects Reserve Fund for the purpose of funding high- priority capital projects. During the Fiscal Year 2011 budget process, staff was directed by the City Council to transfer$10 million from the General Fund fund balance. The Financial Management Policy Statements(FMPS) states: "The City shall strive to maintain the General Fund unreserved fund balance at 10 percent of the current year's budget appropriation for operations and maintenance. After completion of the annual audit, if the unreserved fund balance exceeds 10 percent, the excess must be specifically designated for subsequent year expenditures or transferred to the Capital Projects Reserve Fund..." The most recent annual audit, which was for Fiscal Year 2009, determined that the General Fund unreserved, undesignated fund balance exceeded the 10 percent requirement by $21,493,846.00. In addition to the aforementioned $10 million, the City Council directed staff to transfer$5 million from the Workers' Compensation Insurance Fund, which has a 25 percent fund balance requirement. The most recent annual audit determined that the Workers' Compensation Insurance Fund fund balance exceeded the requirement by $7,709,515.00. Logname: 13CAPITAL TRANSFER Page 1 of 2 Therefore, staff recommends the transfer of$15 million from the General Fund and Workers' Compensation Insurance Fund fund balances for the purpose of funding high-priority capital projects. Staff will continue to return to the City Council for approval of future specific Capital Projects Reserve Fund initiatives, as necessary. FISCAL INFORMATION /CERTIFICATION: The Financial Management Services Director certifies that upon the approval of the above recommendations and adoption of the attached supplemental appropriation ordinances, funds will be available in the current operating budget, as appropriated, of the General Fund and the Workers' Compensation Insurance Fund. Upon approval, the unaudited, unreserved, undesignated fund balance of the General Fund and the Workers' Compensation Insurance 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 538070 0901100 $10.000.000.00 GG01 538070 0901100 $10,000,000.00 FE73 538070 0147310 $5,000,000.00 FE73 538070 0147310 $5,000,000.00 GC10 472001 013001001000 $10,000.000.00 GC10 472073 013001001000 $5,000,000.00 CERTIFICATIONS: Submitted for City Manager's Office by: Karen Montgomery (6222) Originating Department Head: Lena Ellis (8517) Additional Information Contact: James Mauldin (2438) Logname: 13CAPITAL TRANSFER Page 2 of 2