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HomeMy WebLinkAboutOrdinance 25491-05-2022 Ordinance No. 25491-05-2022 AN ORDINANCE REALLOCATING APPROPRIATIONS IN THE HUMAN RESOURCES DEPARTMENT RISK FINANCING FUND BY DECREASING USE OF FUND BALANCE/ NET POSITION CATEGORY IN THE AMOUNT OF $2,300,000,00, AND INCREASING GENERAL OPERATING AND MAINTENANCE CATEGORY BY THE SAME AMOUNT, FOR THE PURPOSE OF FUNDING HAIL DAMAGE REPAIRS TO CITY OWNED PROPERTY; 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 2021-2022 in the Budget of the City Manager, there shall also be reallocated appropriations in the Human Resources Department of the Risk Financing Fund decreasing the Use of Fund Balance/ Net Position category in the amount of$2,300,000.00, and increasing general operating and maintenance category by the same amount, for the purpose of transferring to the General Capital Projects 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 24446-09-2020 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: CITY SECRETARY Ok�� s aee" ;aAette S.Goodall(May 17,2022 07 CDT) Assistant City Attorney Jannette S. Goodall ADOPTED AND EFFECTIVE: May 10, 2022 -�of F01 � U: •:O } * •,gyp � �XAS City of Fort Worth,Texas Mayor and Council Communication DATE: 05/10/22 M&C FILE NUMBER: M&C 22-0344 LOG NAME: 142021 HAILSTORM SUBJECT (ALL)Authorize Payment for Repairs in the Amount Up to$2,300,000.00 for Damage to Multiple City Properties Occurring May 2,2021,Adopt Attached Appropriation Ordinances and Amend the Fiscal Year 2022 Adopted Budget RECOMMENDATION: It is recommended that the City Council: 1. Authorize payments for repairs to multiple City properties in an amount of up to$2,300,000.00; 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Risk Financing Fund,in the amount of $2,300,000.00,from reducing fund balance,for the purpose of transferring to the General Capital Projects Fund; 3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the General Capital Projects Fund,in the amount of$2,300,000.00,transfered from available funds within the Risk Financing Fund,for the purpose of funding the 2021 Hail Damage project(City Project No. 104059);and 4. Amend the Fiscal Year 2022 Adopted Budget. DISCUSSION: On May 2,2021,multiple City of Fort Worth(City)properties were damaged by hail. Damages are projected to be approximately $2,300,000,000.00. Repair costs are covered by the City's commercial property insurance,subject to a$2,750,000.00 aggregate deductible.The purpose of this Mayor and Council Communication(M&C)is to reallocate certain appropriations for the purpose of funding repairs of damage to City owned property that falls within the commercial insurance deductible. Each year,funds are budgeted in the Risk Financing Fund to pay for incurred expenditures that fall within the policy deductible for property damage claims covered by the City's commercial insurance. The deductible for wind and hail is$2,750,000.00 in the aggregate;meaning that wind and hail damages in a single policy year must meet the full deductible prior to any commercial insurance reimbursement. There was a single hail event in 2021. The estimation of repair cost is approximately$2,300,000.00 which fall within the wind/hail deductible. Upon completion of repairs,the City will make payment for repairs on multiple City properties based on actual repair cost. The action in this M&C will amend the Fiscal Year 2022 Adopted Budget as approved in connection with Ordinance 25073-09-2021,Section 5. Internal Service Funds,as listed on page 21. Fund/Department FY2022 M&C Budget Revised Adopted Authority Adjustment FY2022 Budget Budget Category Budget Risk Financing Fund Revenues Use of Money and Property $399,990.00 $399,990.00 Other Revenue $22,347,389.00 $22,347,389.00 Use of Fund Balance/Net Position $30,352.00 M&C 21-0965 1,706$10.00 $1,737,062.00 Use of Fund Balance/Net Position M&C 22-0002 703,673.58 $703,673.58 Use of Fund Balance/Net Position This M&C 2,300 000.00 $2,300,000,00 Total Revenues $22,777,731.00 4,710 383.58 $27,488,114.58 Expenditures Human Resources $22,770,503.00 M&C 21-0965 $1,706,710.00 $24,477,213.00 Transfer to Capital Fund M&C 22-0002 $703,673.58 $703,673.58 Transfer to Capital Fund This M&C $2,300,000.00 $2,300,000.00 Transfer to IT Refresh Capital $7,228.00 $7,228.00 Total Expenditures $22,777,731.00 $4,710,383.58 $27,488,114.58 Funding is available for appropriation in the fund balance of the Risk Financing Fund. Available fund balance is$35,507,856.43 and after use of fund balance, the available balance will be$33,207,856.43. 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 funds are currently available in fund balance within the Risk Financing Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinances,funds will be available in the 2021 Hailstorm project within the General Capital Projects Fund.Prior to an expenditure being incurred,the Human Resources Department has the responsibility of verifying the availability of funds. Submitted for City_Manager's Office by. Reginald Zeno 5804 Originating Business Unit Head: Nathan Gregory 7783 Additional Information Contact: Sophia Gatewood 7784