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Home My WebLink AboutOrdinance 25561-06-2022 ORDINANCE NO. 25561-06-2022 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE WATER AND SEWER FUND IN THE AMOUNT OF $22,100,000.00, FROM NEWLY RECOGNIZE REVENUES, FOR THE PURPOSE OF FUNDING INCREASED OPERATING EXPENSES AND TRANSFERRING TO THE WATER AND SEWER CAPITAL PROJECTS 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 2021-2022 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the increasing estimated receipts and appropriations in the Water and Sewer Fund in the amount of $22,100,000.00, from newly recognized revenues, for the purpose of funding increased general operating expenses,and transferring to the Water and Sewer 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 25073-09-2021 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which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 Yannofto S. Goodall 0 Jannette S.Goodall(Jul 5,2022 10:02 CDT) e Sr.Assistant City Attorney Jannette S.Goodall F p R 7-'J ADOPTED AND EFFECTIVE:June 28,2022 (j _ y>t � �'XAS City of Fort Worth, Texas Mayor and Council Communication DATE: 06/28/22 M&C FILE NUMBER: M&C 22-0486 LOG NAME: 60FY22BU DG ETADJUSTM ENT SUBJECT (ALL) Enact Budget Adjustments by Allocating Projected Current-Year Revenues to Offset Projected Shortfalls, Fund Departmental Capital Outlays and Future Capital Projects,Adopt Attached Appropriation Ordinances and Amend the Fiscal Year 2022 Adopted Budget RECOMMENDATION: It is recommended that the City Council: 1. Adopt attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Fund in the amount of $22,100,000.00,from newly recognized revenues,for the purpose of funding increased operating expenses and transferring to the Water and Sewer Capital Projects Fund; 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water&Sewer Capital Projects Fund in the amount of$2,408,000.00,transferred from available funds in the Water and Sewer Fund,for the purpose of funding the Water and Sewer Outlay programmable project(City Project No. P00087);and 3. Amend the Fiscal Year 2022 Adopted Budget. DISCUSSION: The purpose of this Mayor and Council Communication(M&C)is to fund anticipated shortfalls in operating funds and capital projects by recognizing additional Water&Sewer revenues projected to be received by the Utility due to significantly drier than usual weather conditions during the first half of the fiscal year. Receipts and appropriations in the Water&Sewer Fund will be increased to address current operating costs affected by inflation and supply chain issues, pre-funding capital equipment and vehicle purchases originally slated for the FY2023 budget,and supplementing the Utility's pay-as-you-go capital program which has also been affected by inflation and supply chain issues. Water&Sewer Fund (recommendation 1) Per Ordinance No. 25073-09 2021 Section 4,the FY2022 adopted budget for the Water and Sewer Fund was$491,582,041.00.M&C appropriations throughout the year increased the budget by$1,443,028.00 to$493,025,069.00(M&C 22-0260 and M&C 22-0043).This M&C recommends an additional$22,100,000.00 in revenue and expenditure appropriations for FY2022,for an adjusted budget of$515,125,069.00. Expenditure appropriations in the General Operating and Maintenance accounts will increase by$12,050,000.00.Recent chemical bids and residential meter costs have significantly increased, natural gas rates have increased four-fold,and supply chain issues have caused delays in receiving needed parts and supplies.These issues are causing large projected overruns to the current FY2022 budget.These same inflationary costs and supply chain issues,such as the cost of pipe and electrical materials, are impacting the costs of our capital projects and pay-as-you-go program as well. The Utility will also pre-fund capital equipment and some vehicles originally slated for the FY2023 budget in FY2022. Consequently,the Transfer appropriations will also increase by$10,050,000. These appropriations will allow the Utility to address these rising costs. To balance these increases in expenditures,revenue appropriations will also increase by$22,100,000.00. The first half of this fiscal year has been significantly warmer and drier than normal and retail service revenue is expected to exceed projections, helping to offset the aforementioned rising costs. The action in this M&C will amend the Fiscal Year 2022 Adopted Budget as approved in connection with Ordinance 25073-09-2021,Section 4. Enterprise Funds, as listed on page 18. Fund/Department FY2022 Adopted Revised FY2022 Budget Category Budget Authority Budget Adjustment Budget Water and Sewer Fund Revenues License and Permits $ 1,345,700.00 $ 1,345,700.00 Charges for Services $ 459,626,060.00 This M&C $ 22,100,000.00 $ 481,726,060.00 Use of Money and Property $ 1,166,503.00 $ 1,166,503.00 Other Revenue $ 9,885,000.00 $ 9,885,000.00 Sale of Capital Asset $ 80,000.00 $ 80,000.00 Salvage Sales $ 25,000.00 $ 25,000.00 M&C 22-0043 $ 493,028.00 $ 493,028.00 Transfer from Water Impact $ 11,500,000.00 $ 11,500,000.00 Transfer from Sewer Impact $ 5,000,000.00 $ 5,000,000.00 Transfer from Environ Protection Fund $ 452,726.00 $ 452,726.00 Transfer from Stormwater Utility Fund $ 1,182,816.00 $ 1,182,816.00 Transfer from Solid Waste Fund $ 1,318,236.00 $ 1,318,236.00 COI Proceeds-Refunding Portion M&C 22-0260 $ 950,000.00 $ 950,000.00 Total Revenues $ 491,582,041.00 $ 23,543,028.00 $ 515,125,069.00 Expenditures Water $ 181,248,103.00 This M&C $ 5,800,000.00 $ 187,048,103.00 Reclaimed Water Department $ 108,421.00 This M&C $ 100,000.00 $ 208,421.00 Wastewater Department $ 100,646,434.00 This M&C $ 6,150,000.00 $ 106,796,434.00 Transfer to Water Capital Fund $ 5,121,000.00 This M&C $ 2,408,000.00 $ 7,529,000.00 M&C 22-0043 $ 493,028.00 $ 493,028.00 Transfer to General Fund for Public Art $ 480,712,00 $ 480,712.00 Transfer to General Fund for Position Expenses $ 78,953.00 $ 78,953.00 Transfer to General Fund for Energy Savings Program $ 27,116.00 $ 27,116.00 Transfer to Capital Fund $ 120,000.00 $ 120,000.00 Transfer to Water/Sewer Capital Fund $ 77,625,532.00 This M&C $ 7,642,000.00 $ 85,267,532.00 Payment in Lieu of Taxes $ 5,355,686,00 $ 5,355,686.00 Street Rental $ 23,549,018.00 $ 23,549,018.00 Transfer to Water Debt Funds $ 97,221,066.00 $ 97,221,066.00 COI Proceeds M&C 22-0260 $ 950,000.00 $ 950,000.00 Total Expenditures $ 491,582,041.00 $ 23,543,028.00 $ 515,125,069.00 Additional Funding in 5900016-pre-funding is needed for FY23 vehicle needs in FY22 due to inflationary pressures in FY23 budget. Water&Sewer Capital Project Fund (recommendation 2) Per Ordinance No. 25073-09 2021 Section 4,the FY2022 adopted budget for the Water and Sewer Capital Project Fund in the programmable Capital Outlay project(P00087)was$5,121,000.00. M&C appropriations throughout the year increased the budget by$493,028.00 to $5,614,028.00(M&C 22-0043). This M&C recommends an additional$2,408,000.00 in appropriations for FY2022 to pre-fund capital equipment and some vehicle purchases originally slated for the FY2023 budget,for an adjusted FY2022 budget of$8,022,028.00. Zpropriationsl 2022 CIP Budget Changes I Revised Capital Fund Name Project Name Futhority (Increase/Decrease) FY2022 Budget Water&Sewer Capital Projects- P00087-Water&Sewer Outlay $5,121,000.00'i $5,121,000.00 Fund 56002 M&C 22-004311 $493,028.00I $493,028.00 _This M&C 11 $2,408,000.00,$2,408,000.00 $5,121,000.0011[:::= $2,901,028.00 $8,022,028.00 Additional funding in 5956001 is needed due to the increased investment in the capital program due to inflationary pressure and supply chain issues. 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 upon the approval of the above recommendations and adoption of the attached ordinances,funds will be available in the current operating budget,as appropriated,of the Water&Sewer Fund and the capital budget,as appropriated,of the Water& Sewer Capital Project Fund. Prior to any expenditure being incurred,the Water department has the responsibility to validate the availability of funds. Submitted for City Manager's Office bk Dana Burghdoff 8018 Originating Business Unit Head: Chris Harder 5020 Additional Information Contact: Kristina Ashton 8743