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HomeMy WebLinkAboutContract 60430CSC No. 60430 LOAN AGREEMENT FOR PURCHASE OF REAL PROPERTY THIS LOAN AGREEMENT FOR THE PURCHASE OF REAL PROPERTY (this "Agreement") shall be effective as of August 23, 2023, between Fort Worth Housing Finance Corporation ("Borrower") and The City of Fort Worth ("Lender"). RECITALS A. Borrower is a Texas public nonprofit housing corporation. Borrower desires to borrow from Lender and Lender desires to lend to Borrower, a loan in the amount of Seven Million and No/100 Dollars ($7,000,000.00) (the "Loan"), upon the terms and conditions set forth herein, with said funds to be used toward the purchase of real property from Southwestern Baptist Theological Seminary as described in Exhibit A (the "Property"). B. Borrower intends to own the Property for an interim period before conveying the Property to a community land trust that is in the process of being formed. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and agreements in this Agreement, and intending to be legally bound hereby, Lender and Borrower agree as follows: Section 1. The Loan. 1.1 Agreement and Conditions to Lend. (a) Loan. Subject to the terms and conditions of this Agreement, Lender hereby agrees to make the Loan to Borrower in the principal amount of Seven Million and No/100 Dollars ($7,000,000.00). Principal repaid may not be re -borrowed. (b) Non -Recourse. The Loan shall be non -recourse to Borrower. Borrower's members will not have personal liability for repayment of the Loan. Lender's remedies shall be limited to the collateral pledged to secure the Loan. (c) Disbursements of Loan. Lender hereby unconditionally agrees to disbursement of the full amount of the Loan to Borrower following its receipt of a fully executed copy of this Agreement. 1.2 Pavment Schedule. The Loan is a forgivable deferred payment loan. Repayment of the outstanding principal balance of the Loan, together with accrued, but unpaid, interest thereon, shall be due and payable as follows: (a) Upon an Event of Default; or (b) On August 23, 2024 (the "Maturity Date") Notwithstanding the foregoing or anything else in this Agreement to the contrary, Lender shall forgive the obligations for Borrower to repay the outstanding principal balance of the Loan, OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX plus any accrued, but unpaid, interest thereon, and any other amounts owed to Lender at the Maturity Date, provided no Event of Default shall have occurred and be continuing beyond any applicable notice and/or cure periods. 1.3 Manner of Payments. All payments shall be made in United States Dollars, without offset, counterclaim or defense of any kind, free and clear of (and without any deduction for) taxes, in immediately available funds at the office specified by Lender on the date due. 1.4 Loan Purpose. Proceeds of the Loan shall be used toward the purchase of real property from Southwestern Baptist Theological Seminary as described in Exhibit A. 1.5 Interest. The Loan shall bear interest at 0%. Section 2. Representations and Warranties. 2.1 Borrower Representations and Warranties. Borrower hereby represents and warrants to Lender as follows: Authorization. The execution of this Agreement has been duly authorized by Borrower. Compliance with Laws. Borrower shall comply in all material respects with all laws and regulations applicable to Borrower, its business and its properties. 2.2 Lender Representations and Warranties. Lender hereby represents and warrants to Lender as follows: Authorization. The execution, delivery and performance of the Loan Documents have been duly authorized by all necessary organizational action by Lender. Section 3. Events of Default. Each of following shall constitute an "Event of Default": 3.1 Non-Pavment of Loan. The failure of Borrower to pay any principal, interest or other obligation due under this Agreement when due and payable, and such failure continues for fifteen (15) business days after receipt of written notice from Lender. 3.2 Breach of Covenant. A default by Borrower of any of its covenants or agreements in this Agreement, and such default continues for thirty (30) business days following the delivery by Lender to Borrower of written notice of the existence of such default. 3.3 Breach of Representation or Warranty. Any representation, statement, certificate, schedule, or report made or furnished to Lender by or on behalf of Borrower in this Agreement being false when made or deemed made in any material respect (unless such representation is already qualified with respect to materiality) and such breach continues for thirty (30) business days following the delivery by Lender to Borrower of written notice of the existence of such falsity. Section 4. Remedies. If an Event of Default shall occur, then during the continuance thereof: 4.1 Lender shall have all rights, powers and remedies available under this Agreement or accorded by law. Section 5. Miscellaneous. 5.1 Modification. No modification, amendment or waiver of any provision of this Agreement shall be effective unless in writing signed by Lender and Borrower. 5.2 Notices. Except as otherwise expressly provided herein, any notice herein required or permitted to be given shall be in writing and shall be deemed effective when delivered personally, by certified mail, return receipt requested, or by FedEx or other national overnight courier to the appropriate party at the address set forth below (or at such other address as may be designated by either party in a written notice sent in accordance with this section): If to Borrower: Fort Worth Housing Finance Corporation Attn: Assistant Director Neighborhood Services 200 Texas Street Fort Worth, TX 76102 With a copy to: Fort Worth City Attorney's Office Attn: Leslie L. Hunt 200 Texas Street Fort Worth, Texas 76102 Telephone: (817) 392-6259 Email: leslie.hunt@fortworthtexas.gov If to Lender: The City of Fort Worth Attn: Assistant City Manager for Neighborhood Services 200 Texas Street Fort Worth, TX 76102 or to such other address as Borrower or Lender may, from time to time, designate in writing. 5.3 Severability. In case any provision in this Agreement be invalid, illegal or unenforceable, such provision shall be severable from the remainder of such contract, and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 5.4 Applicable Law. The laws of the State of Texas shall govern this Agreement and the legal relations between the parties without giving effect to any conflict of law provision that would cause the application of the law of any other jurisdiction. 5.5 Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. The exchange of copies of this Agreement and of signature pages by facsimile, e-mail, .pdf or other electronic transmission shall constitute effective execution and delivery of this Agreement and may be used in lieu of the original Agreement for all purposes. Section 6. Right to Audit. Borrower agrees that Lender shall, until the expiration of 5 years after final payment under this Agreement, or the final conclusion of any audit commenced during the said 5 years, have access to and the right to examine at reasonable times any directly pertinent books, documents, papers and records, including, but not limited to, all electronic records, of Borrower involving transactions relating to this Agreement at no additional cost to Lender. Borrower agrees that Lender shall have access during normal working hours to all necessary Borrower facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this section. Lender shall give Borrower reasonable advance notice of intended audits. This provision shall survive the expiration or termination of this Agreement. [Signature pages follow] This Agreement is executed by the Borrower and Lender as of the date first above written. BORROWER: Fort Worth Housing Finance Corporation a Texas public nonprofit housing finance corporation By: U Victor T. Turner, Assistant General Manager LENDER: The City of Fort Worth a Texas municipal corporation By: ��— Fernando Costa, Assistant City Manager CITY OF FORT WORTH INTERNAL ROUTING PROCESS: Approval Recommended: By: v Name: Victor T. Turner Title: Director, Neighborhood Services Dept Approved as to Form and Legality By; U Le L 4 i 7, 2 8 CST) Name: Leslie L. Hunt Title: Senior Assistant City Attorney Contract Authorization: M&C: 23-0706 Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. f-, 9,v— By: Chad Lagoque (Nov 7, 2023 09:19 CST) Name: Chad LaRoque Title: Housing Development and Grants Manager City Secretary: By: Name: Jannette S. Goodall Title: City Secretary a , �aqq� pOR>�II9ap Goo 640 ago =d Pia*oe ooe*pa aann aEo 4s44 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Exhibit A DESCRIPTION OF THE LAND Approximately 15.61 acre tract of land located at 4096 and 4097 Merida Avenue and at 4048 McCart Avenue, Fort Worth, Tarrant County, Texas 76110 M&C Review Page 1 of 6 Official site of the City of Fort Worth, Texas A CITY COUNCIL AGEND Fae TWoRm Create New From This M&C DATE: 8/22/2023 REFERENCE NO.: M&C 23-0706 LOG NAME: 03FY2023WINDUP CODE: G TYPE: NOW PUBLIC CONSENT HEARING: NO SUBJECT: (ALL) Adopt Appropriation Ordinances to Enact Fiscal Year 2023 Year End Budget Adjustments by Reallocating Resources, Operating Surpluses, Available Current -Year Revenues, and Available Fund Balance and Net Position to Offset Projected Shortfalls, Fund Departmental Capital Projects and Outlays, Authorize All Associated Transfers, and Amend the Fiscal Year 2023 Adopted Budget in the Amount of $43,750,243.00 RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached appropriation ordinance reallocating appropriations in the General Fund by increasing the following General Fund departments budget by a combined total of $12,541,097.00 and reducing Non -Departmental department in the General Fund by the same amount: A. Increasing appropriations in the Fire department by $10,250,000.00 for funding Separation Leave and Salaries & Benefit overages; B. Increasing appropriations in the Transportation & Public Works department by $756,000.00 for funding Separation Leave, and increased other contractual services costs; C. Increasing appropriations in the Police department by $717,000.00 for funding Vehicle maintenance parts/labor and Matrix staffing study costs; D. Increasing appropriations in the Financial Management Services department by $344,097.00 for funding employee salaries and Separation Leave; E. Increasing appropriations in the City Secretary Office by $250,000.00 for funding Election Costs; F. Increasing appropriations in the Human Resource department by $104,000.00 for funding Separation Leave and additional audit expenses; G. Increasing appropriations in the FWLab department by $80,000.00 for funding consulting contracts; and H. Increasing appropriations in the City Attorney Office by $40,000.00 for funding Separation Leave. 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Fund by $10,300,000.00, from newly recognized revenues, for the purpose of 1) covering anticipated shortfalls in operating by $8,600,000; and 2) transferring to Water and Sewer Capital Projects Fund to fund Water and Sewer Outlay project (City Project No. P00087) by $1,700,000; 3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Capital Projects Fund by $1,700,000.00, transferring from Water and Sewer Fund, for the purpose of funding Water and Sewer Outlay project (City Project No. P00087); 4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Fleet & Equipment Services Fund by $3,429,968.00, from unreserved net position, for the purpose of covering unexpected significant increases in fleet outside repair and maintenance, parts and labor costs; 5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Environmental Protection Fund by $503,000.00, from available fund balance, for the purpose of covering operating and maintenance costs; 6. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Alliance Maintenance Facility Fund by $757,275.00, from available fund balance, for the purpose of covering unexpected increases in contractual services, as well as gas, water and wastewater utilities; 7. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the General Fund in the amount of $19,130,000.00 from surplus interest earnings, a) for providing a short-term loan to Fort Worth Housing Finance Corporation for the purchase of property from the Southwestern Baptist Theological Seminary, increasing by $7,000,000.00 in the Operating and Maintenance category in the Neighborhood Services department; b) for funding West 7th Bridge Illumination project (City Project No. 105022) by $2,500,000.00, and c) transfer to Risk Financing Fund by $9,630,000.00; 8. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the General Capital Projects Fund in the amount of $2,500,000.00, transfer from General Fund, for the purpose of funding West 7th Bridge Illumination project (City Project No. 105022). 9. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Risk Financing Fund in the total amount of $7,401,513.00, 1) increasing by $9,630,000.00, transfer from General Fund for the purpose of establishing a reserve for unfunded property and liability claims/settlements; and 2) decreasing by $2,228,487.00 in the use of fund balance/net position. 10. Authorize all necessary transfers to affect the appropriations identified above; and 11. Amend the Fiscal Year 2023 Adopted Budget and Fiscal Year 2023 - 2027 Capital Improvement Program. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to take actions to bring various funds into balance to facilitate year-end closing and to comply with the City Charter, this process occurs annually. The City's annual operating budget is formally enacted into law by City Council action adopting an appropriation ordinance (Ordinance No. 25773-09- 2022, hereinafter the "Ordinance") that establishes spending limits for each department's and fund's operation. The current practice is to bring forward this Windup M&C during the fiscal year to address items that have arisen during the fiscal year. To allocate anticipated net savings to meet one-time needs or to address items that have arisen during the fiscal year. General Fund (Recommendation 1 & 7) Per Ordinance No. 25773-09-2022 Section 1, the General Fund adopted budget for FY2023 was $915,340,881.00. M&C appropriations of $9,726,631.00 throughout the year resulted in an adjusted budget of $925,067,512.00. This M&C recommends an increase in appropriations of $19,130,000.00, for an adjusted budget of $944,197,512.00, to fund projects and transfer to Risk Financing Fund as a contribution to Risk Financing Fund reserves. The City generates interest income by prudently investing idle cash from operations, "pay as you go" capital funds, and bond funds in strict compliance with state law and City policy. The current practice is to allocate interest income from general government activities to the City's General Debt Service Fund to offset interest cost associated with outstanding debt issuances and to accumulate cash which can be used to pay off debt prior to maturity to achieve debt service savings. http://apps.cfwnet.org/council_packet/mc_review.asp?ID=31333&councildate=8/22/2O23 11 /6/2023 M&C Review Page 2 of 6 The City has benefited tremendously from the current elevated interest rate environment, resulting in better than expected interest earnings due to a dramatic increase in the Federal Funds rate from a range of 0.01\% to 0.25\% to over 5\% in the current year. As a result, City staff has identified approximately $19,130,000.00 of unpledged surplus interest income in the City's General Debt Service Fund. Staff recommends for City Council to declare this surplus of interest income receipts from the General Debt Service Fund and appropriate in the General Fund or the purpose of funding the following items: 1) increasing the appropriations in Neighborhood Services department by $7,000,000.00, for the purchase of approximately 15 acres of land and student housing units from the Southwestern Baptist Theological Seminary in the form of a short-term loan to Fort Worth Housing Finance Corporation, which anticipates to assign the purchase agreement or sell the land to a non-profit entity for the development of permanently affordable housing for working families. The land is located at 4096 Merida Avenue, 4097 Merida Avenue and 4048 McCart Avenue in Fort Worth, Texas; 2) increasing the appropriations for the West 7th Bridge Illumination project by $2,500,000.00; 3) transfer to Risk Financing Fund reserves. Interest income derived from the investment of idle debt proceeds will continue to be allocated, as required, to the General Debt Service Fund. As a result, the General Debt Service Fund will still receive the amount budgeted in FY2023. Going forward, staff will monitor collection of investment income from general government operations to identify any surplus that can be used for other lawful purposes. Given the variable nature of investment income, any surplus may fund one-time initiatives, capital projects, or to accumulate cash which can be used to pay off debt prior to maturity to achieve debt service savings. The actions above also exclude other funds, such as Water & Sewer, Stormwater, CCPD, etc., which will continue to receive their proper allocation of interest income. This M&C also reallocates budgets between Non -Departmental departments and General Fund departments for covering the shortfall due to elections, separation leave, tuition reimbursement, and Fire Overtime, Salaries and Benefits expenses. Fund / Department Budget Category General Fund Revenues Other Revenue lUse of Fund Balance (rollover) jUse of Fund Balance FY2023 Adopted Budget Revised Budget Authority Adjustment FY2023 Budget $ 3,262,825.00 This M&C Rec 7 $ M&C 23-0095 $ - M&C 23-0135 M&C 23-0272 M&C 23-0567 M&C 23-0006 Total Revenues $ 915,340,881.00 Expenditures City Manager's Office $ City Auditor's Office $ City Attorneys Office City Secretary's Office Code Compliance $ Diversity &Inclusion Economic Development Subsidy Culture &tourism (380 Agreement) $ Transfer to PIDs Transfer to Economic incentive fund $ Financial Management Services Fire Transfer to Municipal Airport Fund (Fire Lease) lHuman Resources Neighborhood Services lUnited Way Transfer to Neighborhood Improvement $ Strategies project (Paygo) Transfer to the General Capital Fund Park and Recreation Transfer to the General Capital Fund (Paygo) Transfer to the PIDs and TIRZ $ Transfer for YMCA Contract Transfer to Vehicle and Equipment $ Replacement Fund IFWLab $ 19,130,000.00 $ 22,392,825.00 $ 1,667,525.00 $ 1,667,525.00 $ 2,124,106.00 $ 8,059,106.00 $ 1,500,000.00 $ 4,000,000.00 $ 435,000.00 $ 28,856,631.00 $ 944,197,512.00 10,740,253.00 M&C 23-0511 $ 2,337,683.00 2,927,456.00 $ 326,791.00 2,000,000.00 $ 13,758,733.00 $ M&C 23-0095 This M&C Rec 1 This M&C Rec 7 193,213,414.00 $ This M&C Rec 1 M&C 23-0567 59,501.00 $ 6,283,156.00 $ This M&C Rec 1 10,212,010.00 $ This M&C Rec 7 199,500.00 3,887,650.00 $ 45, 000.00 $ 57,498,942.00 $ M&C 23-0509 3,265,763.00 571,406.00 $ 12,000.00 522,403.00 $ 6,963,958.0 0 M&C 23-0006 M&C 23-0059 50,000.00 $ 3,887,650.00 45, 000.00 50,000.00 $ 10,790,253.00 $ 2,337,683.00 40,000.00 $ 7,977,225.00 250,000.00 $ 2,768,393.00 $ 27,156,256.00 300,000.00 $ 3,140,325.00 405,066.00 683,897.00 $ 39,470,017.00 120,000.00 152,799.00 $ 2,927,456.00 $ 326,791.00 $ 2,000,000.00 109,000.00 $ 26,341,830.00 344,097.00 12,130, 000.00 10,250,000.00 $ 207,463,414.00 4,000,000.00 $ 59,501.00 104,000.00 $ 6,387,156.00 7,000,000.00 $ 17,212,010.00 $ 199,500.00 $ 3,887,650.00 $ 45,000.00 250,000.00 $ 57,748,942.00 $ 3,265,763.00 $ 571,406.00 $ 12,000.00 560,000.00 $ 7,603,958.00 300,000.00 http://apps.cfwnet.org/council_packet/mc review.asp?ID=31333&councildate=8/22/2023 11/6/2023 M&C Review Public Art Police M&C 23-0575 This M&C Rec 1 $ 1,786,370.00 $ 298,551,538.00 M&C 23-0095 This M&C Rec 1 Property Management $ 21,318,122.00 Transfer to the General Capital Fund (Paygo) $ 4,810,462.00 Transfer to VERF Fund $ 3,500,000.00 Transportation and Public Works $ 37,496,803.00 Transfer to the General Capital Fund $ 2,170,298.00 Transfer to the General Capital Fund (Paygo) $ 48,903,276.00 Non -Departmental $ 370,000.00 Separation Pay $ 8,060,037.00 Employee Recruitment and Retention Fund $ 4,767,575.00 Fire Contingency Overtime Fund $ 4,000,000.00 Contractual Services $ 3,465,149.00 M&C 23-0272 This M&C Rec 1 This M&C Rec 1 This M&C Rec 1 Page 3 of 6 300,000.00 80,000.00 $ 1,786,370.00 574,628.00 $ 299,843,166.00 717,000.00 $ 21,318,122.00 $ 4,810,462.00 $ 3,500,000.00 1,500,000.00 $ 39,752,803.00 756,000.00 $ (250,000.00) $ (7,427,097.00) This M&C Rec 1 $ (4,000,000.00) $ 48,903,276.00 120,000.00 632,940.00 4,767,575.00 M&C 23-0511 $ (50,000.00) $ 910,284.00 M&C 23-0509 $ (250,000.00) M&C 23-0192 $ (405,066.00) M&C 23-0330 $ (120,000.00) PIDs Mid Year M&Cs $ (152,799.00) M&C 23-0006 $ (125,000.00) M&C 23-0059 $ (300,000.00) M&C 23-0575 $ (300,000.00) This M&C Rec 1 $ (852,000.00) Tuition Reimbursement $ 172,478.00 This M&C Rec 1 $ (12,000.00) $ 160,478.00 Training Initiative $ 250,000.00 $ 250,000.00 Transfer to the General Capital Fund (Paygo) - IT Capital $ 3,617,007.00 $ 3,617,007.00 Transfer to the General Capital Fund (Paygo) - Community Partnerships $ 750,000.00 $ 750,000.00 Transfer to IT Refresh Capital $ 1,201,099.00 $ 1,201,099.00 Transfer to Municipal Golf (Operating $ 320,000.00 $ 320,000.00 Subsidy) Transfer to IT Capital M&C 23-0135 $ 2,124,106.00 Total Expenditures $ 915,340,881.00 $ 28,856,631.00 $ 944,197,512.00 Water and Sewer Fund (Recommendation 2) Per Ordinance No. 25773-09-2022 Section 4, the FY2023 adopted budget for the Water and Sewer Fund was $515,451,460.00. M&C appropriations throughout the year increased the budget by $40,130,000.00 to $555,581,460.00. This M&C recommends an additional $10,300,000.00, from newly recognized revenues, in revenue appropriations for FY2023, for an adjusted budget of $565,881,460.00. The Water and Sewer fund will address anticipated shortfalls in operating funds with additional appropriations in the Other Contractual account in the amount of $2,600,000.00. In addition, increases in capital project costs will be addressed by increasing the transfer -out to capital by $7,700,000.00. These appropriations will allow the Utility to purchase one additional vehicle (for inspection of capital projects), one additional piece of heavy equipment (for excavation tasks in the field), and address overruns caused by rising costs in fleet. To balance this, the fund will recognize additional revenue in the amount of $10,300,000.00. Fund / Department FY2023 Adopted Authority Budget Revised FY2023 Budget Category Budget Adjustment Budget lWater and Sewer Fund Revenues License and Permits $ 1,420,659.00 $ 1,420,659.00I Charges for Services $ 474,620,055.00 M&C 23-0105 $ 130,000.00 $ 525,050,055.00I M&C 23-0539 $ 40,000,000.00 This M&C Rec 2 $ 10,300,000.00 jUse of Money and Property $ 1,646,386.00 $ 1,646,386.00I Other Revenue $ 11,515,000.00 $ 11,515,000.00I Sale of Capital Asset $ 80,000.00 $ 80,000.00I Salvage Sales $ 25,000.00 $ 25,000.00I Transfer from Water Impact $ 14,669,420.00 $ 14,669,420.00I ITransfer from Sewer Impact $ 8,311,270.00 $ 8,311,270.00I Transfer from Environ Protection Fund $ 495,475.00 $ 495,475.00I ITransfer from Stormwater Utility Fund $ 1,268,956.00 $ 1,268,956.00I ITransfer from Solid Waste Fund $ 1,399,239.00 $ 1,399,239.00I COI Proceeds - Refunding Portion $ http://apps.cfwnet.org/council_packet/mc review.asp?ID=31333&councildate=8/22/2023 11/6/2023 M&C Review Page 4 of 6 Transfer from 2018 Bond Program $ Total Revenues $ 515,451,460.00 $ 50,430,000.00 $ 565,881,460.00I lExpenditures Water $ 196,654,144.00 M&C 23-0105 $ 130,000.00 $ 247,084,144.00I M&C 23-0539 $ 40,000,000.00 This M&C Rec 2 $ 10,300,000.00 Reclaimed Water $ 119,164.00 $ 119,164.00I Wastewater $ 109,159,558.00 $ 109,159,558.00I Transfer to Capital Fund $ 120,000.00 $ 120,000.00I Transfer to Water Capital Fund $ 2,999,000.00 $ 2,999,000.00I Transfer to General Fund for Public Art $ 480,712.00 $ 480,712.00I Transfer to General Fund for Energy $ 27,116.00 $ 27,116.00 Savings Program Transfer to Dev Services for Positions $ 1,060,221.00 $ 1,060,221.00I Transfer to Financial Management $ 244,394.00 $ 244,394.00 Services for Purchasing Positions Transfer to Water and Sewer Capital Fund $ 74,102,103.00 $ 74,102,103.00I Payment in Lieu of Taxes $ 5,791,939.00 $ 5,791,939.00I Street Rental $ 24,038,181.00 $ 24,038,181.00I Transfer to Water Debt Funds $ 100,472,611.00 $ 100,472,611.00I Transfer to IT Refresh Capital $ 182,317.00 $ 182,317.00I Total Expenditures $ 515,451,460.00 $ 50,430,000.00 $ 565,881,460.00I Water and Sewer Capital Projects Fund (Recommendation 3) The capital appropriations are intended to be life-of-project/life-of-program appropriations and are considered encumbered and available until the associated project or program has been fully completed. City Original Budget Project Project Name Budget Authority Adjustment Adjusted Budget No. P00087 Water and Sewer Outlay $ 55,166,832.35This M&C Rec 3 $ 1,700,000.00 $ 56,866,832.35I Fleet & Equipment Services Fund (Recommendation 4) Per Ordinance No. 25773-09-2022 Section 5, the FY2023 adopted budget for the Fleet & Equipment Services Fund was $32,231,585.00. This M&C recommends an increase in appropriations of $3,429,968.00, for an adjusted budget of $35,661,553.00. Expenditure appropriations in the General Operating and Maintenance accounts will increase by $3,429,968.00. Due to unexpected increases of about 26\% in the cost of parts, as well as greater demand for repair services, the Fleet Division has forecasted to be over budget by $1,664,161.00. Additionally, there has been greater demand and cost for outside repairs services as a result of subcontracting fees due to the limited number of contracts with approved vendors, which resulted in higher than expected costs of $1,548,085.00. Due to higher than expected expenses related to separation leave of tenured staff, an additional $217,722.00 is needed. To balance these increases in expenditures, the use of unreserved net position will be appropriated until revenue is collected from user departments, which is expected to occur by the end of the fiscal year. Fund / Department FY2023 Adopted Authority Budget Budget Category Budget Adjustment Fleet & Equipment Services Fund Revenues Charges for Services $ 32,145,610.00 $ jUse of Money and Property $ 59,522.00 $ Other Revenue $ 19,741.00 $ Sales of Capital Asset $ 1,563.00 $ Salvage Sales $ 5,149.00 $ lUse of Fund Balance/Net Position This M&C Rec 4 $ 3,429,968.00 $ Total Revenues $ 32,231,585.00 $ 3,429,968.00 $ lExpenditures Property Management $ 32,099,361.00 This M&C Rec 4 $ 3,429,968.00 $ Transfer to General Fund $ 74,869.00 $ Transfer to Capital Fund $ 35,000.00 $ Transfer to IT Refresh Capital $ 22,355.00 $ Total Expenditures $ 32,231,585.00 $ 3,429,968.00 $ Environmental Protection Fund (Recommendation 5) Revised FY2023 Budget 32,145, 610.001 59,522.001 19,741.001 1,563.001 5,149.001 3,429,968.001 35,661,553.001 1 35,529,329.001 74,869.001 35,000.001 22,355.001 35,661,553.001 Per Ordinance No. 25773-09-2022 Section 2, the FY2023 adopted budget for the Environmental Protection Fund was $18,465,040.00. This M&C recommends an increase in appropriations of $503,000.00, for an adjusted budget of $18,968,040.00. Expenditure appropriations in the General Operating and Maintenance accounts will increase by $503,000.00, from available fund balance for covering operating and maintenance expenses. Fund / Department FY2023 Budget Revised Adopted Authority Adjustment FY2023 Budget Category Budget Budget I http://apps.cfwnet.org/council_packet/mc review.asp?ID=31333&councildate=8/22/2023 11/6/2023 M&C Review Page 5 of 6 Environmental Protection Revenues Charges for Services $ 15,074,528.00 jUse of Money and Property $ 56,000.00 ITransfer from Stormwater Utilities $ 1,000,000.00 jUse of Fund Balance/Net Position $ 2,334,512.00 This M&C Rec 5 $ Total Revenues $ 18,465,040.00 $ Expenditures Code Compliance $ 13,067,583.00 This M&C Rec 5 $ Transfer to Water/Sewer Fund $ 495,476.00 Transfer to Grant $ 215,000.00 Transfer to Engergy Savings Program $ 4,657.00 Transfer to IT Refresh Capital $ 13,324.00 Transfer to Capital Fund $ 4,669,000.00 Total Expenditures $ 18,465,040.00 $ Alliance Maintenance Facility Fund (Recommendation 6) $ 15,074,528.00 $ 56,000.00 $ 1,000,000.00 503,000.00 $ 2,837,512.00 503,000.00 $ 18,968,040.00 503,000.00 $ 13,570,583.00 $ 495,476.00 $ 215,000.00 $ 4,657.00 $ 13,324.00 $ 4,669,000.00 503,000.00 $ 18,968,040.00 Per Ordinance No. 25773-09-2022 Section 2, the FY2023 adopted budget for the Alliance Maintenance Facility Fund was $7,428,853.00. M&C appropriations throughout the year increased the budget by $860,000.00 to $8,288,853.00. This M&C recommends an increase in appropriations of $757,275.00, for an adjusted budget of $9,046,128.00. The increase in appropriations is due to unexpected increases of approximately $200,000.00 in contractual services related to a 5\% increase in the TDI contract effective at contract renewal in February 2023, unexpected boiler and chiller pump maintenance and repairs totaling $200,995.00, an electrical outage that interrupted connection to the Central Utility Plant (CUP) and other buildings that required replacement of some cabling and switch gears for approximately $325,000.00, feed line section replacements totaling approximately $150,000.00, unexpected fire system repairs totaling $30,000.00, and utility meter replacement totaling $100,000.00. Additional funding needed is offset by expected savings in utilities of approximately $248,720.00. To balance these increases in expenditures, the use of available fund balance will be appropriated. Fund / Department Budget Category lAlliance Maintenance Facility iRevenues Charges for Services Use of Money and Property $ Other - Recovery of Utilities $ Use of Fund Balance/Net Position $ Total Revenues $ Expenditures Property Management $ FY2023 Adopted Authority Budget 378, 700.00 M&C 23-0370 $ Transfer to Capital Fund $ Total Expenditures $ General Capital Projects Fund (Recommendat on 8) 2,112, 317.00 1,932,071.00 3,005,765.00 This M&C Rec 6 $ 7,428,853.00 $ 6,148,853.00 M&C 23-0370 This M&C Rec 6 1,280,000.00 7,428,853.00 Budget Revised FY2023 Adjustment Budget $ 378,700.001 860,000.00 $ 860,000.001 $ 2,112,317.001 $ 1,932,071.001 757,275.00 $ 3,763,040.001 1,617,275.00 $ 9,046,128.001 860,000.00 1 $ 7,766,128.001 757,275.00 1 $ 1,280,000.001 1,617,275.00 $ 9,046,128.001 The capital appropriations are intended to be life-of-project/life-of-program appropriations and are considered encumbered and available until the associated project or program has been fully completed. City Original Budget Project Project Name Budget Authority Adjustment Adjusted Budget No. 105022 West 7th Bridge Illumination 0 This M&C Rec 8 $ 2,500,000.00 $ 2,500,000.001 Risk Financing Fund (Recommendation 9) Per Ordinance No. 25773-09-2022 Section 5, the FY2023 adopted budget for the Risk Financing Fund was $27,510,695.00. M&C appropriations of $1,717,967.00 throughout the year resulted in an adjusted budget of $29,228,662.00. This M&C recommends a net increase in appropriations of $7,401,513.00, for an adjusted budget of $36,630,175.00, transfer from General Fund, for the purpose of establishing a reserve for unfunded property and liability claims/settlements. Fund / Department FY2023 Adopted Authority Budget Revised FY2023 Budget Category Budget Adjustment Budget Risk Financing Fund Revenues lUse of Money and Property $ Other - Payment for Allocated 3 Services from other funds JUse of Fund Balance/Net Position $ 398,680.00 $ 26,601,495.00 This M&C Rec 9 $ 9,630,000.00 $ 510,520.00 M&C 23-0010 $ 750,000.00 $ M&C 23-0605 $ 60,475.00 M&C 23-0606 $ 907,492.00 This M&C Rec 9 $ (2,228,487.00) 398,680.001 36,231,495.00 http://apps.cfwnet.org/council_packet/mc review.asp?ID=31333&councildate=8/22/2023 11/6/2023 M&C Review Page 6 of 6 Total Revenues $ 27,510,695.00 $ 9,119,480.00 $ 36,630,175.001 Expenditures lHuman Resources $ 27,506,493.00 M&C 23-0010 $ 750,000.00 $ 35,658,006.001 1 This M&C Rec 9 $ 7,401,513.00 1 Transfer to IT Refresh Capital $ 4,202.00 $ 4,202.001 Transfer to Stormwater Capital M&C 23-0605 $ 60,475.00 $ 60,475.00 Projects Vransfer to General Capital rojects M&C 23-0606 $ 907,492.00 $ 907,492.00 JTotal Expenditures $ 27,510,695.00 $ 9,119,480.00 $ 36,630,175.001 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 General Fund, General Capital Projects Fund, Risk Financing Fund, Fleet & Equipment Services Fund, Alliance Maintenance Facility, Environment Protection Fund, Water and Sewer Fund, and Water and Sewer Capital Projects Fund. Prior to any expenditure being incurred, the participating departments have the responsibility to validate the availability of funds. TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) FROM Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) Submitted for Citv Manaaer's Office bv: Reginald Zeno (8517) Oriainatina Department Head: Mark McDaniel (6222) Additional Information Contact: ATTACHMENTS 03FY2023WINDUP funds availabilitv.Ddf (Public) 03FY2023WINDUP 10100 A023(r1).docx (Public) 03FY2023WINDUP 10100 A023(r7).docx (Public) 03FY2023WINDUP 25005 A023(r5).docx (Public) 03FY2023WINDUP 28009 A023(r6).docx (Public) 03FY2023WINDUP 30100 A023(r8).docx (Public) 03FY2023WINDUP 56001 A023(r2) uodated.docx (Public) 03FY2023WINDUP 56002 A023(r3).docx (Public) 03FY2023WINDUP 60101 A023(r4).docx (Public) 03FY2023WINDUP 60111 A023(r9).docx (Public) 03FY23WINDUP FID table Final.xlsx (CFW Internal) http://apps.cfwnet.org/council_packet/mc review.asp?ID=31333&councildate=8/22/2023 11/6/2023