HomeMy WebLinkAboutOrdinance 26502-10-2023 ORDINANCE NO. 26502-10-2023
AN ORDINANCE ADJUSTING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE RETIREE HEALTH FUND, BY INCREASING
ESTIMATED APPROPRIATIONS IN THE GENERAL OPERATING AND
MAINTENANCE CATEGORY IN THE AMOUNT OF $3,511,919.00 AND
DECREASING APPROPRIATIONS IN THE CONTRIBUTION TO FUND
BALANCE/NET POSITION BY THE SAME AMOUNT; 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 2022-2023 in the
Budget of the City Manager,there shall also be adjusted estimated receipts and appropriations in the Retiree
Health Fund, by increasing appropriations in the general operating and maintenance category in the amount
of$3,511,919.00 and decreasing estimated receipts and appropriations in the contribution to fund balance/net
position by the same amount.
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 25773-09-2022 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said prior ordinances and appropriations are hereby expressly repealed.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
C an
J Jannette S. Goodall
Assistant City Attorney City Secretary
ADOPTED AND EFFECTIVE: October 17,2023
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/17/23 M&C FILE NUMBER: M&C 23-0856
LOG NAME: 14RETIREEBUDGETREAPPROPRIATIONFY2023
SUBJECT
(ALL)Adopt Appropriation Ordinance Adjusting Appropriations in Retiree Health Fund and Amend the Fiscal Year 2023 Adopted Budget
RECOMMENDATION:
It is recommended that the City Council:
1.Adopt the attached appropriation ordinance adjusting appropriations in the Retiree Health Fund,by increasing estimated appropriations in the
general operating and maintenance category in the amount of$3,511,919.00 and decreasing appropriations in the contribution to the fund
balance/net position by the same amount;and
2.Amend the Fiscal Year 2023 Adopted Budget.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C)is to adjust the final budget and authorize transactions to reflect actual performance
of the Retiree Health Fund for the fiscal year ending September 30,2023.Any amounts over budget must be appropriated by action of the City
Council,in accordance with the City Charter(Chapter X,Section 5, Expenditures Only Pursuant to Appropriations).
The deficit in the Retiree Health Fund is due to the significant increase in retiree health claims costs for those retirees under the age of 65 in Fiscal
Year(FY)2023.The Retiree Health Fund saw an increase in claims of 22%from FY2022.The increase in claims cost is likely due to several
factors including continuing issues surrounding COVID-19.With the reduction in claims cost that occurred in FY2021,the retirees were not seeking
their normal levels of medical care. In FY2022,the City began seeing a slight increase in claims costs returning to FY2020 levels. In
FY2023,retirees are having more significant medical issues occurring due to the delay of seeking care.The City's specialty pharmacy spend has
increased as well. Additionally,as is the case nationwide,inflation is impacting providers'offices and medical facilities causing the City's claims
costs to rise.
The proposed FY2023 budget included a potential contribution to the net position of$3,511,919.00 which now needs to be reallocated to
operating expense claim payments.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
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FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendation and the adoption of the attached appropriation ordinance,funds
will be available in the Retiree Healthcare Trust Fund.Prior to any expenditure being incurred,the Human Resource
Department has the responsibility to validate the availability of funds.
Submitted for City Manager's Office by: Jesica L. McEachern 5804
Originating Business Unit Head: Dianna Giordano 7783
Additional Information Contact:
Expedited