HomeMy WebLinkAbout2019/08/20-Minutes-Crime Control and Prevention District (CCPD)CITY OF FORT WORTH, TEXAS
CRIME CONTROL AND PREVENTION DISTRICT BOARD OF DIRECTORS
AUGUST 20, 2019
Present•
Betsy Price, President
Vice President Dennis Shingleton
Director Carlos Flores
Director Brian Byrd (arrived at 2:01)
Director Cary Moon
Director Gyna Bivens
Director Jungus Jordan
Director Kelly Allen Gray
Director Ann Zadeh
Citv Staff:
Jay Chapa, Assistant City Manager
Denis McElroy, Senior Assistant City Attorney
Mary J. Kayser, Secretary to the Board
I. Call to Order
With a quorum of the board members present, President Price called the meeting of the Crime
Control and Prevention District Board (CCPD) of Directors to order at 2:00 p.m., on Tuesday,
August 20, 2019, in the City Council Conference Room 290, Fort Worth City Hali,
200 Texas Street, Fort Worth, Texas.
II. Approval of Minutes from Meeting - Mav 14, 2019
Motion was made by Director Shingleton and seconded by Director Allen Gray to approve the
minutes of the May 14, 2019, regular meeting of the Crime Control and Prevention District Board
of Directors. The motion passed 8-0 (Byrd absent).
III. Written Renorts
a. FY 2019 3°`� Quarter Performance Report on Activities and Finances
b. Neighborhood Patrol Of�cer (NPO) Staffing
There were no questions.
CITY OF FORT WORTH, TEXAS
CRIME CONTROL AND PREVENTION DISTRICT BOARD OF DIRECTORS
AUGUST 20, 2019
Page 2 of 4
IV. Staff Presentations
a. CCPD Renewal Elections (Jay Chapa)
Assistant City Manager Jay Chapa noted that the renewal election would be held in May 2020.
The Board would have an action item on their November 2019 agenda related to calling the
election. Staff is recommending a 20 year term.
V. Action Items
A. Consideration of FY 2019 Budget Amendment to Reallocate $751,000.00 in
Estimated Savings in Various Initiatives for Increases of $556,900.00 in the
Enhanced Enforcement Initiative and $194,500.00 in the Neighborhood Crime
Prevention Initiative (PUBLIC HEARING)
a. Staff Report
Assistant City Manager Jay Chapa, City Manager's Office, appeared before the CCPD Board and
provided a staff report. Staff is recommending the reallocation.
b. Public Hearing
President Price opened the Public Hearing. There were no speakers on this item
c. Action
Motion was made by Director Shingleton and Director Bivens to close the Public Hearing and
approve FY 2019 Budget amendment to reallocate $751,000.00 in estimated savings in various
initiatives for increases of $556,900.00 in the Enhanced Enforcement Initiative and $194,500.00
in the Neighborhood Crime Prevention Initiative. Motion passed 9-0.
B. Consideration of Changes to Financial Management Police Statements and Rule
Adopting Local Budget Procedures (Denis McElroy)
Mr. Denis McEh�oy, Law Department, presented proposed changes to the Financial Management
Policy Statements. The main substantive change that is suggested is the addition of a new
indirect cost rule that would apply to any "support service provider" and would allow more of
the CCPD-provided funding to be used for overhead and other indirect costs. (Currently all third-
party entities receiving CCPD funding can use no more than 10% of that money for indirect
costs.) The proposed policy would deiine support service provider as an entity that gives
administrative and facility support to other providers that are directly providing crime control
and prevention related services ("direct service providers"). Another notable change that is
proposed is amending the locally adopted budget rule to revise the notice process for public
heai•ings to be as required by the Texas Open Meetings Act
CITY OF FORT WORTH, TEXAS
CRIME CONTROL AND PREVENTION DISTRICT BOARD OF DIRECTORS
AUGUST 20, 2019
Page 3 of 4
Motion was made by Director Bivens and second by Director Flores to approve the revised
policy including the amendment to the local budget rule. Motion passed 9-0.
C. Consideration of FY 2019 Community Based Program Funding
Recommendations (Keith Morris)
Mr. Keith Morris, Police Depa2-tment, presented the FY 2019 Community Based Program Funding
Recommendations in the amount of $250,000.00. They are as follows:
Agency Name Project/Program Funding
Amount
1. Girls Embracing Mothers Foui�th Annual Summer Camp $25,000
GEM , Inc.
2. Lena Pope Home, Inc. Second Opportunity for SuccessOO $50,000
3. Cheryl's Voice Family Violence Prevention Initiative $30,000
4. JPS Foundation Community Safety, Intimate Partner Violence, and $84,803
Socioeconomic Status: A Community Initiative
5. New Day Services for FOCUS (Families Offering Children Unfailing $60,197
Children & Families Support) for Mothers
TOTAL $250,000 �
Motion was made by Director Byrd and second by Director Zadeh to approve the
recommendations for funding the Community Based Programs for FY 2019. Motion passed 9-0.
D. Consideration of the Addition of the Enhanced Criminal Tracicing Unit Program
(Deputy Chief Michael Shedd, Deputy Chief Ty Hadsell)
Deputy Chiefs Michael Shedd and Ty Hadsell, Police Department, updated the Board on changes
to the SRT Units scope of worlc and create a criminal tracking unit. This has been a pilot
program and Police is requesting that the Board approve the change of scope for FY 2019 to add
Enhanced Criminal Tracking Unit as a separate program and revise the scope of the SRT
program.
Director Allen Gray made a motion and second by Director Bivens to change the scope for FY
2019 to add Enhanced Criminal Tracicing Unit as a separate program and revise the scope of the
SRT program. Motion passed 9-0.
E. Consideration of the FY 2020 Recommended CCPD Budget in the Amount of
$87,865,505.00 (PUBLIC HEARING)
CITY OF FORT WORTH, TEXAS
CRIME CONTROL AND PREVENTION DISTRICT BOARD OF DIRECTORS
AUGUST 20, 2019
Page 4 of 4
a. Staff Report
Assistant City Manager Jay Chapa, appeared before the CCPD Board and provided a staff report
on the proposed FY 2020 budget. He reviewed the process for the FY 2020 budget process. He
provided an overview the FY 2020 Budget in the amount of $87,865,505.00.
b. Public Hearing
President Price opened the Public Hearing. There were no citizens to be heard.
c. Action
Motion was made by Director Bivens and Director Shingleton to close the Public Hearing and
approve the FY 2020 recommended CCPD Budget in the amount of $87,865,505.00. Motion
passed 9-0.
VL Citizen Comments
VII. Board Requests for Future A�enda Items and/or Reports
Director Bivens — background and funding tried to crime statistics. This will be discussed at the
Budget Work Session on Thursday, August 22, 2019.
IX. Adiourn
With no further presentations or discussions, President Price adjourned the meeting of the Fort
Worth Crime Control and Prevention Board of Directors at 3:10 p.m., on Tuesday,
August 20, 2019.
These minutes approved by the Fort Woi�th Crime Control and Prevention District Board of
Directors on the 12th day of November, 2019.
�
Minutes Prep d by and Attest:
,
� �, CC
Mary J. � se , ecretary
Fort Worth Crime Control and Prevention District
Financial Management Policy Statements
The putpose of the Financial Management Policy is to establish and document a framework for
fiscal decision-making by the Crime Control and Prevention District Board (Board). The
Boai•d will maintain a comprehensive set of Financial Management Policy Statements to be
administered by City Staff on behalf of the Crime Control and Prevention District (CCPD).
The aim of these policies is to ensure that financial resources ai•e available to meet the present
and future needs of the CCPD through effective program planning for CCPD revenue.
1. Budget (revised November 12, 2015, Augus��, 2019).
a. P��ogT°am-Basec� Birdgeting. The CCPD budget shall be organized on a program
basis with specific budgets, goals and objectives for each program.
b. Bzrdget-Adoption Process. Section 363.204(� of the Texas Local Government
Code authorizes the Board of Directoi•s of the Fort Worth Crime Control and
Prevention District (the Board) by rule to "adopt procedures for adopting a
budget different from the procedures outlined in this subchapter, but the [B]oard
must hold public hearings relating to the budget." In accordance with that
authority, the Board adopts this rule enacting a budget-adoption process that
mii7ors the one found in Chapter 363 but with a revised schedule that coincides
with the City of Fort Worth's budget-adoption schedule. As noted in the
preamble to the Resolution adopting this rule, the puipose of aligning the two
schedules is to "facilitate better, more comprehensive financial planning by
allowing all resources that are available for puiposes of crime control and
prevention to be considered and allocated at the same time."
In accordance with the Board-adopted rule and notwithstanding anything in
Subchapter E of Chapter 363 to the contrary, the following process and
deadlines shall apply to the adoption of the budget of the Fort Worth Crime
Control and Prevention District:
1. Municipal Funding Application
An application for funding for the upcoming fiscal year from the Fort Worth
Crime Control and Prevention District under Section 363.209 must be
submitted no later than August 15.
2. Board Public Hearing and Publication of Notice Thereof
The Board shall hold a public hearing on the proposed annual budget for the
upcoming fiscal year no later than September 1.
Notice of the hearing shall be given in accordance . with the Texas Open
Meetings Act.
3. Board Adoption of Budget
The Board shall adopt a budget for the upcoming fiscal year no latei• than
September 8.
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Financial Management Policy Statements
4. Presentation of Adopted Budget to Creating Municipality
The Boar•d-adopted budget shall be presented to the Fort Worth City
Council, as governing body of the political subdivision that created the
District, as soon as practicable but under no circumstances later than
September 15.
5. Public Hearing by Governing Body of Creating Municipality and
Publication of Notice Thereof
The City Council of the City of Fort Worth, as governing body of the
political subdivision that created the Foi-t Worth Crime Control and
Prevention District shall hold a public hearing on the budget adopted by the
Board no later than September 15.
Notice of the hearing shall be given in accordance with the Texas Open
Meetings Act.
6. Approval or Rejection of Board-Adopted Budget by Governing Body of
Creating Municipality
The City Council of the City of Fort Worth, as governing body of the
political subdivision that created the District, shall approve or reject the
budget submitted by the Board no later than September 20.
7. Joint Meeting of Board and Governing Body on Rejection of Original
Board-Approved Budget.
If the Fort Woi•th City Council, as governing body of the municipality that
created the District, rejects the budget submitted by the Board, the City
Council and the Board shail meet and together amend and approve the
budget before the beginning of the iiscal year.
2, Revenue. The Board shall design, maintain and administer a revenue system to assure
a reliable, equitable, and sufficient revenue stream which includes conservative
pr•ojections of revenue and is updated routinely to evaluate the health of the fund.
a. Revenue Estimates for Bzrdgetirag. In order to maintain a stable level of services,
the Board shall use a conservative, objective, and analytical approach when
preparing revenue estimates. The process shall include analysis of probable
economic changes and their impacts on revenues, historical collection rates, and
trends in revenues. The goal of this approach is to reduce the likelihood of
actual revenues falling short of budget estimates during the year and to avoid
mid-year• service reductions.
b. Re>>enzce Collection and Administr�atioJ�. CCPD funds will not be used to
support the administration of revenue collection.
3. Expenditures. The Board shall identify prior•ity services, establish appropriate service
levels and administer the expenditure of available resources to assure iiscal stability and
the effective and efficient delivery of services.
Fort Worth Crime Control and Prevention District Page 2 of 12
Financial Management Policy Statements
a. Czrrrent Fzcnding Basis. The CCPD shall operate on a cunent funding basis for
all operating expenses. Expenditures shall be budgeted and controlled so as not
to exceed cui•rent revenues plus the planned use of the Fund Balance
accumulated through prior year savings. The use of the Fund Balance shall be
guided by the Resei•ve Policy Statement. (See Policy Statement #4 below.)
b. Budget P1°ocess. The Board shall follow the pz�ocess outlined in Chapter 363 of
the Texas Local Government Code, as modified by the Board-adopted rule, by
accepting an annual funding application fi•om the City of Fort Worth and
developing a budget. The Boaz•d may also consider proposals from citizens or
organizations presented at the public hearings held during the budget
development. Section 363.105, Voting Requirements, in Chapter 363 of the
Texas Local Government Code requires a two-thirds majority of the Board to
reject any application for funding.
c. Avozdance of Ope�°ating Deficits. The Board shall take corrective actions at any
time during the iiscal year when expenditure and revenue re-estimates project an
opei•ating deficit for the fund at year-end. Cor�•ective actions may inciude
expenditure reductions or use of Fund Balance in accordance with the Reserve
Policy. (See Policy Statement #4 below.)
d. Mid-Year° BZtdget Amendnaenis and Adjustments.
Amendments
In accordance with Section 363.205(�, amendments to the budget require
approval of the Board and the City Councii. For purposes of this policy, an
"amendment" to the budget is (i) a change that requires appropriation of
additional funds from Fund Balance or increased appropriations or (ii) a change
that does not z•equire appropriation of additional funds but involves shifting
appropriations between or among Initiatives. A proposed amendment shall be
presented iirst to the Board at a pubiic meeting, and the Board shall hold a
public hearing to receive input and comment from interested citizens. An
amendment adopted by the Board shall then be presented to the Fort Worth City
Council, as governing body of the municipality that created the district, which
shall approve or reject the amendment following a public hearing to receive
input and comment from interested citizens. Notice of each public hearing shail
be provided in accordance with the Texas Open Meetings Act.
Adjtrstments
Adjustments to the budget also require approvai of the Board and the City
Council. For purposes of this policy, an "adjustment" to the budget is a change
that does not require appropriation of additional funds from Fund Balance or an
increase in appropriations but instead involves shifting savings from one
program or funding level within an Initiative to another program or funding
level in the same Initiative. A proposed adjustment shall be presented iirst to
the Board at a public rneeting. An adjustment adopted by the Board shall then
be presented to the Fort Worth City Council, as gover-ning body of the
municipality that created the district, which shall approve or reject the
adjustment. No public hearing shall be required in connection with a budget
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Financial Management Policy Statements
adjustment. However, all meetings must be posted in accordance with the Texas
Open Meetings Act.
e. The Board shall reimburse the City for any costs, other than personnel costs,
that the City incurs for performing the duties required under Section 363.208,
Deposit of Funds, in Chapter 363 of the Texas Local Government Code.
£ Excess Expenditin�es. Excess expenditures in approved program budgets are
allowed up to ten percent (10%) of the total program budget cost provided the
overage does not cause the budget "Initiative" to go over budget and provided
that the proposed expenditure is within the scope of the program, either as
originally approved or as approved with amendment under subsection (g) of this
section. When the cumulative changes exceed ten percent (10%) of the total
program amount or the "Initiative" goes over budget, approval from the Board
and the City Council is required. Public notice and a public hearing are not
required if savings can be shifted from an existing program, but meetings to
approve excess expenditures must be posted in accordance with the Texas Open
Meetings Act.
g. Changes in Prog�°a�n Scope. Changes in program scope or staffing shall require
Board and City Council approval regardless of the dollar amount. All meetings
must be posted in accordance with the Texas Open Meetings Act; however,
mid-year budget adjustments that shift savings from existing programs and
funding levels to other existing progi•ams may be approved by both the Board
and the City Council without holding a public hearing.
h. Periodic Prog�°anz Reviela�s. City staff wili provide quarteriy reports to the
Board regarding the objectives and measur•es of each Direct Service Provider
program and for direct service programs that receive aid from a Support Service
Provider. (See paragraph j. of Policy Statement #3 foi• definitions of provider
types.)
As a condition of receiving CCPD funding, a Support Service Provider shall
(A), to the extent the Support Service Provider furnishes direct services,
maintain records documenting the total number of individuai visits it provides;
the number discrete users it serves; and the ZIP codes of the users served
(Service Data); and (B) i•equire each entity and program it supports to, at a
minimum, (i) maintain records of the entity or program's Service Data; and (ii)
submit monthly, quarterly, and annual Service Data reports to the Support
Seivice Provider. The Support Service Pi•ovider shall furnish City staff with
reports on a quarterly and annual basis that reflect both individual and
aggregated Service Data for itself and all of the agencies and programs the
Support Service Provider is supporting. Staff will provide quarterly reports to
the Board regarding the Service Data for all Support Service Providers and the
programs and agencies that each one supports.
On an annual basis, the Board, in conjunction with the City Manager, shall
evaluate the programs for impact, efficiency and effectiveness related to crime
control and crime prevention. The Board shall consider the privatization and
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Financial Management Policy Statements
contracting of services with other governmental agencies or private entities as
alternative approaches to service delivery. During the annual review process,
programs which are determined to be inefficient andlor ineffective shall be
reduced in scope or eliminated. City staff will report quarterly on the objectives
and measures of each program.
i. Pzcrchasing. The City shali conduct purchasing and procurement functions on
behalf of the CCPD. The processes shall be efficient, effective, and fully
comply with applicabie State laws and City ordinances. Staff shall make every
effort to maximize discounts and capitalize on savings available tlu•ough
competitive bidding and "best value" purchasing.
j. Limits on Use of CCPD Funding for Indi�°ect and Similar Costs; Aztdits of
Fzcnding Recipients.
Indi�°ect and Similar Costs
For a Direct Service Provider, no more than ten percent (10%) of the CCPD
funding awarded to a crime control and prevention program may be used by the
recipient for payment of its indirect costs, administrative expenses, or other
overhead costs.
For a Support Service Provider, all CCPD funding awarded may be used by the
recipient for payment of its indirect costs, administrative expenses, or other
overhead costs, provided, however, that all CCPD funding provided to the
organization may not represent more than thirty percent (30%) of the Support
Service Provider's documented total annual revenues.
A Direct Service Provider is an entity or program that primarily or exciusively
serves the purpose of providing crime control and prevention related services
directly to members of the public.
A Support Service Provider is an entity or program that complies with the
requirements outlined below and that primarily or exclusively serves the
purpose of providing administrative and facility services to the Fort Worth
Police Department and to at least four other, third-party entities or programs that
provide crime control and prevention related services directly to members of the
public.
To qualify as a Support Service Provider the entity or program must have a
Board-approved written agreement with the City for use of the Support Service
Provider's facilities the Fort Worth Police Department.
In addition, to qualify as a Support Service Provider, the entity or program must
submit for staff's review and approvai the entity or program's written
agreements with the thir•d-party entities or programs that it supports and that
provide crime control and prevention related serviced directly to members of the
public. The staff's review and appi•oval of the written agreements will be
limited solely to determining whether (i) the nature of the services to be
provided by the entities and programs receiving indirect support from the
District adequately relates to and aligns with the District's mission, (ii) adequate
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Financial Management Policy Statements
support is being provided to all such entities and programs by the Support
Services Provider given the amount of funding being pi•ovided by the District,
(iii) the agreement contains requirements regarding maintenance and reporting
of Service Data in that will ultimately be reported to the Board in accordance
with paragraph h. of Policy Statement #3 so that the Board may determine
whether District funding is being used effectively, and (iv) the contract allows
reasonable dispute resolution between the parties so that the Board has adequate
assurance the parties have recourse against each other in the event questions or
issues arise regarding use of District funds.
The Board has sole and �nal discretion in determining an entity or
program's status as a Direct or Support Service Provider.
The limitations on indirect costs contained in this provision do not appiy to
programs or services provided by the City of For-t Worth.
Azcdr'ting as Conc�ition of Fzcnding
As a condition of accepting any CCPD funding, each recipient must agree to
maintain records regarding receipt and use of CCPD funds and to allow for
reasonable audits of such records during regular business hours, at the expense
of the City or District, with such audit to be performed by an auditor selected by
the City or the Board. Such audit may be performed by staff in the Police
Department, the City's Internal Audit Department, or a third-party auditor
approved by the City or Board.
In addition, any recipient receiving $300,000.00 or more from the District
during any iiscal year shall also be required, at its own cost, to engage an
independent third-party to perform an audit regarding the receipt and use of
CCPD funding and to provide a copy of such audit report to City staf£ If a
funding recipient is already obtaining a general audit of its iinancial matters by
an independent third-party, that audit may be used to satisfy this requirement so
long as it specifically includes separate review of the records of CCPD funds.
Because the independence of extez•nal audit firms is best maintained by
changing iirms regularly, if a funding recipient continues to use the same audit
iirm for more than three consecutive fiscal years, that fact will be reported to the
Board and may result in the amount of funding to the recipient being reduced or
eliminated.
lc. Ccrpital Plan. Staff shall prepare and present for Board consideration ' and
approval a plan of capital expenditures, which may include the use of
programmable projects allowing for general uses within a deiined type, such as,
for example communications equipment. To the extent a suiplus is realized
following completion of a Board-approved capital project, that suiplus may be
allocated to another capital project that has also been approved by the Board,
provided, however, that staff shall be required to identify and repoi-t to the
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Financial Management Policy Statements
Board the amount and nature of such reallocated sutplus.
4. Reserve Policy Statement (revised May 14, 2015; May 19, 2016):
I. Authority:
The Fort Worth Crime Control and Prevention District (CCPD or District)
Board is responsible for legislation, policy formulation, and overall direction
setting of the District. This responsibility includes the approval of financial
policies which establish and direct the operations of the Fort Worth Crime
Control and Prevention District. The City Manager, on behalf of the District, is
responsible for carrying out the policy directives of the CCPD Board and
managing the day-to-day operations of the CCPD. This policy shall be
administez•ed on behalf of the City Manager by the Chief Financial
Officer/Director of Finance.
II. Purpose:
The District desires to maintain a prudent level of financial resources to guard
its stalceholders against service disruption in the event of unexpected temporary
revenue shortfalls or unpredicted one-time expenditures. In addition, this policy
is intended to document the appropriate Reserve level to protect the CCPD's
credit worthiness and provide adequate cash flow based upon the traditional
operating cycle. Reserves are accumulated and maintained to provide stability
and flexibility to respond to unexpected adversity and/or opportunities and to
minimize the costs associated with short-term cash borrowing.
This policy establishes the amounts the District will strive to maintain in the
CCPD Fund as Reserves, how the Reserves will be funded, and the conditions
under which Reserves may be used.
III. Applicability and Scope:
This policy shall apply to the Crime Control and Prevention District Fund undei•
the budgetary and fiscai control of the CCPD Boai•d.
This policy is intended to supplement, not supersede, provisions governing the
issuance of bonds or other obligations secured in whole or in part by revenues
held in or credited to the CCPD Fund, to the extent allowed by law.
IV. Glossary — The Board incorporates by reference definitions provided in the
Glossary appendix to the City of Fort Worth's Financial Management Policy
Statements, as amended fiom time to time, provided, however, that any
reference in that Glossary to "City" or "City of Fort Worth" shall be read as
referring to the "Foi�t Worth Crime Control and Prevention District" and any
reference to "City Council" shall be read as referz•ing to the "Board of Directors
of the Fort Worth Crime Control and Prevention District."
V. Policv:
Reserve Levels - The District will maintain the following minimum Restricted
and Assigned Fund Balance:
1.(a) A minimum Fund Balance in the CCPD Fund equivalent to two
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Financial Management Policy Statements
months (16.67%) of z•egular, on-going Operating Expenditures
(including transfers out). This calculation shall not include Non-
Recurring Items. PLUS
(b) A minimum Fund Balance in CCPD Fund equivalent to two
months (16.67%) of the amount being contributed fi�om the
CCPD Fund toward Debt Service payments for the subsequent
year.
2. The applicable cumulative total of all above requirements wiil be the
minimum reserve r•equirement for the CCPD Fund.
VI. Monitorin� Performance
A. The District will measure its compliance with this policy on an annual basis as
of September 30t�' each year or as soon as practicai after final iiscal year-end
financial information becomes available. During the course of the iiscal year,
the Department of Finance shall closely monitor the CCPD's revenues and
expenditui•es to ensure Reserves are not used beyond any planned usage.
B. If, based on staff s analysis and forecasting, the target level of Reserves is not
met at fiscal year-end or is not likely to be met at any point within a iive-fiscal-
year time horizon, then during the annual budget process a plan to replenish the
Reserve levels will be developed by collaboration among affected departments
and the Department of Finance based on the requirements outlined in this
policy.
C. Funding the Reserve — Funding of Reserve tai•gets will generally come from
excess revenues over expenditures or one-time revenues.
D. Periodic Review of the Targets — At a minimum, during the annual financial
planning / budget process, staff shall review the cui7•ent and five-iiscal-year
projected Reserves to ensure that they are appropriate given the economic and
financial risk factors the CCPD is subject to.
VII. Pooled Cash
Cash Balance — In order to provide liquidity adequate to meet the needs and
demands of providing government services including unanticipated reductions
in i•evenues or• unplanned increases in expenditures, Cash Balances will be
maintained and managed through the Pooled Cash method in such a way as to
minimize short-teim bonowing. This practice reduces overall cost to taxpayers
by minimizing interest expense. The Reserve is intended to support this effort
and counterbalance the tax collection cycle.
VIII. Conditions for Use of Reserves
It is the intent of the District to limit use of CCPD Fund Reserves to address
unanticipated, Non-Recui�ring needs. Reserves shall not norinally be applied to
recurring annual opez•ating expenditures. Reserves may, however, be used to
allow time for the District to restructure its operations in a deliberate manner (as
might be required in an economic downturn), but such use will only take place
in the context of an adopted long-term pian.
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Financial Management Policy Statements
IX. Excess of Reserves
In the event Reserves exceed the minimum balance requirements, at the end of
each iiscai year, any excess Reseives may be used in the following ways:
l. Fund accrued liabilities, including but not limited to debt service and
pension and other post-employment benefits attributable to positions
funded by the District, as directed and approved within a long-term
financial plan adopted or approved by the Board and the Board's
adopted annual budget. Priority will be given to those items that
relieve budget or iinancial operating pressure in future periods;
2. Appropriated to lower the amount of bonds or increase the pay-as-
you-go contributions needed to fund capital projects in any Capital
Improvement Pian adopted or approved by the Board or in an
adopted City of Fort Worth Capital Improvement Plan to which the
Board agrees to make a contribution;
3. One-time expenditures that do not increase z•ecurring operating costs
and that cannot be funded through current revenues. Emphasis wili
be placed on one-time uses that reduce future operating costs; or
4. Start-up expenditures for new programs, provided that such action is
approved by the CCPD Board and is considered in the context of
multi-iiscal-year projections of revenue and expenditures as prepared
by the Department of Finance.
X. Authoritv over Reserves
The CCPD Board may authorize the use of Reserves. The Department of
Finance will regularly report both current and projected Reserve levels to the
City Manager and CCPD Board.
XI. Quality Control and Qualitv Assurance:
It is the responsibility of the Chief Financial Ofiicer/Directoi• of Finance to
ensure the presence of procedures that provide sufficient guidance to affected
personnel to fulfill the intent of this policy.
These policies will be reviewed at least annually and updated on an as-needed
basis.
XII. Metrics:
To be developed and managed accordingly.
XIII. Records:
There are no records associated with this policy.
XIV. Process Flow Map:
Not Applicable.
XV. Forms:
Not Applicable.
XVI. Appendices:
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Financial Management Policy Statements
Not Applicable.
5. Capital Expenditures and Improvements. The Board shall review and monitor the
state of the City's capital assets purchased with CCPD funds, funding alternatives, and
availability of resources.
a. Ccrpital Imp�°ovements Plc�nning. The Board shall review the City's application
for funding in conjunction with the City's annual review of the needs for capital
improvements and equipment for the Police Department and in light of the
Board's most recently approved capital plan.
b. Capital Expenditzcre Fr'nccncing. The Board shall recognize the following three
basic methods of financing capital requirements:
1. Cunent revenues;
2. Fund Balance as allowed by the Fund Balance Policy; and
3. Money borrowed tluough debt as allowed by Chapter 363 of the Texas
Local Government Code.
CCPD funds can be used for lease/purchase agreements if the total amount
borrowed does not exceed current available funds or the next year's projected
program revenue. Funds may also be budgeted to pay annual debt service for
police facility debt obligations of the City of Fort Worth tYuough the noi•mal
CCPD budget processes.
c. P�°oceeds from Dispositioi� of Capital Assets. When assets that were initially
acquired using CCPD funding are disposed of, the net proceeds of the sale shall
be deposited in the CCPD Fund for further use in accordance with Chapter 363.
6. Debt Financing.
The Board shall comply with Section 363.206, Limitations on Expenditures and
Investments, of Chapter 363 of the Texas Local Government Code, as amended, in
regards to debt iinancing for the CCPD.
7. Investments: The Board shall participate in the City's cash investment program that
aims to ensure safety, provide necessary liquidity and optimize yield.
a. Consolidated Portfolio. CCPD funds shall be deposited in a special account in
the tr•easury of the City of Fort Worth and maintained by the City of Fort Worth
in a Consolidated Portfolio in which it pools its funds for investment puiposes.
b. Cash Management Polrcy. All cash management transactions with CCPD funds
shall comply with the City's cash management policy and the Public Funds
Investment Act as carried out by the City Treasurer and outlined in City of Fort
Worth Financial Management Policy Statements and its Investment Policy and
Strategy. In accordance with state law requirements, "Investments shall be
made with judgment and care, under prevailing circumstances, that a person of
prudence, discretion, and intelligence would exercise in the management of the
person's own affairs, not for speculation, but for investment, considering the
probable safety of capital and the probable income to be dei•ived" with the
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Financial Management Policy Statements
preservation and safety of principal being the highest priority objective.
c. Interest. Interest earned from investments attributed to funds provided by the
CCPD shail be distributed fi•om the City of Fort Worth to the CCPD.
8. Intergovernmental Relations.
a. School Safety Initicrtive. For purposes of the School Safety Initiative, the Board
shall coordinate effoi-ts with the City of Fort Worth and the various school
districts located within the City of Fort Worth to achieve common policy
objectives and share the cost of providing governmental services on an equitable
basis.
b. Inter•-local Cooperation i�� Delivering Ser>>ices. In order to promote the
effective and efficient delivery of sei•vices, the City, on behalf of the CCPD,
shall actively seek to work with local jurisdictions in joint purchasing consortia,
sharing facilities, sharing equitably the costs of service delivery, and developing
joint programs to improve service to its citizens.
9. Fiscal Monitoring. City Staff shall prepare and present regular reports that analyze,
evaluate, and forecast the CCPD's financial performance and economic condition.
a. Finctncical Statzrs and Pe� formance Repo��ts. Consistent with State law, City
staff shall prepare for Board review, quarterly reports comparing expenditures
and revenues to current budget, proj ecting expenditures and revenues through
the end of the year, noting the status of fund balances to include dollar amounts
and percentages, and outiining any i•emedial actions necessary to maintain the
CCPD's financial position,
b. Con�pliance with Board Policy Statements. The Board shall review the CCPD
Financial Management Policy Statements annually to assure compliance with
federal law, state law, generally accepted accounting principles (GAAP) and the
CCPD's directives.
10. Accounting, Auditing, and Financial Reporting: The City, on behalf of the CCPD,
will comply with pr•evailing federal, state and local statutes and regulations, as well as
cui�ent professional principles and practices.
a. Confo��mance to Accozrnting Principles - The City's accounting practices and
financial reporting shall conform to generally accepted accounting principles
(GAAP) as promulgated by the Governmental Accounting Standards Board
(GASB).
b. Selection of AZtdito�°s - The City selects an independent firm of certified public
accountants to perform an annual audit of the books of account, records and
transactions, certifying the iinancial statements of the City and reporting the
results and recommendations to the City Council. This audit shall include the
Crime Control and Prevention District Fund each yeai• as required by Chapter
363 of the Texas Local Government Code, along with any related findings
reported to the Board. Staff shali instruct the auditor to include a definitive
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Financial Management Policy Statements
statement on the CCPD fund in the management letter•. Any findings regarding
CCPD funds shall be provided to the Board. Pursuant to Chapter 363 of the
Texas Local Government Code, the CCPD funds will continue to be included in
the annual City-wide external audit.
11. Internal Controls: The Board shall require that staff maintain an internal control
sh•ucture designed to provide reasonable assurance that CCPD assets are safeguarded
and that the possibilities for material errors in the CCPD's iinancial records are
minimized.
a. City staff shall develop the following:
Procedures to ensure that financial transactions and activities are
properly reviewed and authorized;
ii. Procedures to ensure financial transactions and events are properly
recoi•ded and that all financial reports may be relied upon as accurate,
complete and up-to-date; and
iii. Procedures to ensure that adequate safeguards exist over the access to
and use of iinancial assets and records.
b. Job duties will be adequately sepai•ated to reduce to an acceptable level the
opportunities for any person to be in a position to both peipetrate and conceal
ei7•oi•s or ii7•egularities in the normal course of assigned duties.
c. Independent checks and audits will be made on staff performance to ensure
compliance with established procedures and proper valuation of recorded
amounts.
d. Internal control systems and procedures must have an apparent benefit in terms
of reducing and/or preventing losses. The cost of implementing and maintaining
any control system should be evaluated against the expected beneiits to be
derived fi•om that system.
Restated and Revised FMPS Adopted:
August 30, 2011
FMPS Reviewed and Amended:
May 14, 2015 (Reserve Policy - Amendment and Restatement)
November 12, 2015 (Budget Process Reflecting Local Rule)
May 19, 2016 (Reserve Policy - GASB 54 Amendment)
August aa, 2019 (Capital Budgeting, Indirect Costs, and Public Hearing Notices)
�___��
etsy Pric ' ent
Date: �"�i ��
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Financial Management Policy Statements