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HomeMy WebLinkAboutOrdinance 26600-11-2023 (2) Ordinance No. 26600-11-2023 AN ORDINANCE INCREASING FISCAL YEAR 2023 ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE WATER AND SEWER FUND IN THE AMOUNT OF$41,800,000.00,FROM NEWLY RECOGNIZED REVEUE,FOR THE PURPOSE OF FUNDING INCREASED OPERATING EXPENSES AND TRANSFERS TO WATER & 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. i 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 increased estimated receipts and appropriations in the Water and Sewer Fund in the amount of$41,800,000.00,from newly recognized revenue,for the purpose of funding increased operating,expenses by $1,800,000.00 and transfers to Water & Sewer Capital Projects Fund by $40,000,000.00. E 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 I. direct conflict with such other ordinances and appropriations,in which instance said conflicting provisions of �i said prior ordinances and appropriations are hereby expressly repealed. i'. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY Denis C.McElroy Jannette S.Goodall Assistant City Attorney City Secretary dp44�p� dAF F°OR a� %°® o�d ADOPTED AND EFFECTIVE:November 14,2023 P Fo o °°O°°°°°° b' City of Fort Worth, Texas Mayor and Council Communication DATE: 11/14/23 M&C FILE NUMBER: M&C 23-0971 LOG NAME: 60FY23BUDGETADJUSTMENTII SUBJECT (ALL)Adopt Ordinance Enacting Fiscal Year 2023 Budget Adjustments in the Water and Sewer Fund in the Amount of$41,800,000.00 by Allocating Higher than Anticipated Projected Revenues to Offset Anticipated Operating Shortfalls and Fund Departmental Capital Projects and Amend the Fiscal Year 2023 Adopted Budget RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water&Sewer Fund in the amount of $41,800,000.00,from newly recognized revenues,for the purpose of funding increased operating expenses and transfers to Water&Sewer Capital Projects Fund;and 2. Amend the Fiscal Year 2023 Adopted Budget. DISCUSSION: The purpose of this Mayor and Council Communication(M&C)is to recognize additional Water&Sewer revenue projected to be received by the Utility due to higher than usual water usage revenues associated with drier than normal weather conditions during the fiscal year. Receipts and appropriations in the Water&Sewer Fund will be increased to be used for operating costs affected by inflation and supply chain issues and supplementing the Utility's pay-as-you-go capital program. 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$50,430,000.00 to$566,187,460.00(M&C 23-0105,M&C 23-0539,M&C 23-0697 and M&C 23-0706).This M&C recommends an additional$41,800,000.00 in revenue appropriations for FY2023,from newly recognized revenues,for an adjusted budget of$607,987,460,00. Expenditure appropriations in the General Operating and Maintenance accounts will increase by$1,800,000.00.Inflationary factors have increased the costs of commercial meters,chemicals and fuel;and electricity costs have increased due to increased demand on our system. These issues are causing large projected overruns to the FY2023 budget.These same inflationary costs and supply chain issues,such as the cc of pipe and electrical materials,are impacting the costs of debt-funded capital projects and the pay-as-you-go program as well.Consequently,th Transfer appropriations will increase by$40,000,000.00 to allow the Utility to address these rising costs. Additional capital appropriations will b brought forward as needed. To balance these increases in expenditures,revenue appropriations will also increase by$41,800,000.00. This fiscal year has been significant' warmer and drier than normal,especially during the summer,and retail service revenue is expected to exceed projections,helping to offset the aforementioned rising costs. The actions in this M&C will amend the FY2023 Adopted Budget as approved in connection with Ordinance 25773-09-2022,Section 4.Enterr Funds,as listed on page 19. Fund/Department FY2023 Adopted Authority Budget Revised FY2023 Budget Category Budget Adjustment Budget Revenues License and Permits $1,420,659 $1,420,659 Charges for Services $474,620,055 M&C 23-0105 $130,000 $474,750,055 M&C 23-0539 $40,000,000 $40,000,000 M&C 23-0706 $10,300,000 $10,300,000 This M&C $32,900,000 $32,900,000 Use of Money and Property $1,646,386 This M&C $6,000,000 $7,646,386 Other Revenue $11,515,000 This M&C $2,900,000 $14,415,000 Sale of Capital Asset $80,000 M&C 23-0697 $306,000 $386,000 Salvage Sales $25,000 $25,000 Transfer from Water Impact $14,669,420 $14,669,420 Transfer from Sewer Impact $8,311,270 $8,311,270 Transfer from Environ Protection Fund $495,475 $495,475 Transfer from Stormwater Utility Fund $1,268,956 $1,268,956 Transfer from Solid Waste Fund $1,399,239 $1,399,239 Total Revenues $515,451,460 $92,536,000 $607,987,460 Expenditures Water $196,654,144 M&C 23-0105 $65,000 $196,719,144 M&C 23-0539 $7,500,000 $7,500,000 M&C 23-0706 $2,500,000 $2,500,000 This M&C $700,000 $700,000 Reclaimed Water $119,164 M&C 23-0706 $100,000 $219,164 This M&C $500,000 $500,000 Wastewater $109,159,558 M&C 23-0105 $65,000 $109,224,558 M&C 23-0539 $7,500,000 $7,500,000 This M&C $600,000 $600,000 Transfer to Capital Fund $120,000 $120,000 Transfer to Water Capital Fund $2,999,000 M&C 23-0539 $2,500,000 $5,499,000 M&C 23-0706 $1,700,000 $1,700,000 Transfer to General Fund for Public Art $480,712 $480,712 Transfer to General Fund to Energy S $27,116 $27,116 Savings Program Transfer to Dev Services for Positions $1,060,221 $1,060,221 Transfer to Financial Management $244,394 $244,394 Services for Purchasing Positions Transfer to Water and Sewer Capital Fund $74,102,103 M&C 23-0539 $22,500,000 $96,602,103 M&C 23-0706 $6,000,000 $6,000,000 This M&C $40,000,000 $40,000,000 Payment in Lieu of Taxes $5,791,939 M&C 23-0697 $306,000 $6,097,939 Street Rental $24,038,181 $24,038,181 Transfer to Water Debt Funds $100,472,611 $100,472,611 Transfer to IT Refresh Capital $182,317 $182,317 Total Expenditures $515,451,460 $92,536,000 $607,987,460 A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION 1 CERTIFICATION: The Director of Finance certifies that upon the approval of the above recommendations and adoption of the attached ordinance,funds will be available in the fiscal year 2023 operating budget,as appropriated,in the Water&Sewer Fund.Prior to any expenditure being incurred,the WatE Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office by: Dana Burghdoff 8018 Originating Business Unit Head: Chris Harder 5020 Additional information Contact: Sarath Padar 8407