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.
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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�i said prior ordinances and appropriations are hereby expressly repealed.
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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�
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ADOPTED AND EFFECTIVE:November 14,2023 P Fo o
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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