HomeMy WebLinkAboutOrdinance 27218-10-2024Ordinance No. 27218-10-2024
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GENERAL FUND FOR THE DIVERSITY AND
INCLUSION DEPARTMENT, IN AN AMOUNT OF $266,002.30 FROM THE NON -
DEPARTMENTAL BUDGET; 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 ].
That in addition to those amounts allocated to the various City departments for Fiscal Year 2024-2025 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
General Fund for the Diversity and Inclusion Department, in an amount of $266,002.30 from the Non -
Departmental budget.
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 incorporated into the ordinance effecting the budget of the municipal government
of the City of Fort Worth for the ensuing Fiscal Year beginning October 1, 2024, and ending September 30,
2025, 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instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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:
Assistant City Attorney
ADOPTED AND EFFECTIVE: October 15, 2024
CITY SECRETARY
Jannette S. Goodall
City Secretary
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/15/24 M&C FILE NUMBER: M&C 24-0914
LOG NAME: 0808FHAP2024
SUBJECT
(ALL) Ratify Execution of a Fair Housing Assistance Program Cooperative Agreement with the United States Department of Housing and Urban
Development to Process Housing Cases for Fiscal Year 2024; Approve Acceptance of Funds in an Amount Up to $212,400.00; Authorize Moving
$449,002.34 in Expenditures from the Grants Fund to the General Fund to Restore HUD Funds Spent on Expenses Deemed Ineligible under the
Fair Housing Assistance Program for FY2017-2023; and Adopt Appropriation Ordinances
RECOMMENDATION:
It is recommended that the City Council:
1. Ratify the execution of a Fair Housing Assistance Program Cooperative Agreement through the Diversity and Inclusion Department, on
behalf of the Fort Worth Human Relations Commission, with the United States Department of Housing and Urban Development for Fiscal
Year 2024 and accept funds in an amount up to $162,400.00 plus current and future accrued interest from contractual awards in an amount
up to $50,000.00, based upon actual receipts, for a total amount of $212,400.00;
2. Authorize moving $449,002.34 in expenses to the General Fund from the Grants Operating Federal Fund in order to restore U.S.
Department of Housing and Urban Development funds spent on expenditures for FY2017-2023 that were deemed ineligible under Fair
Housing Assistance Program Expenses, thereby restoring the same amount of appropriations in the Grants Operating Federal Fund for
future use on eligible Fair Housing Assistance Program expenses; and
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Grants Operating Federal Fund in the
amount (1) up to $212,400.00, subject to receipt of the grant, for the purpose of funding a Fair Housing Assistance Program Cooperative
Agreement and (2) $449,002.34 in FHAP 2024 project (City Project 105835), from the restored revenue;
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Diversity and Inclusion General Fund, in
an amount of $266,002.30 from the Non -Departmental budget to offset the cost of transferred expenditures.
DISCUSSION:
On August 2, 2024, the Diversity and Inclusion Department received a Fair Housing Assistance Program (FHAP) Cooperative Agreement with the
United States Department of Housing and Urban Development (HUD). Pursuant to that Cooperative Agreement, HUD will provide funding to the
Diversity and Inclusion Department, a designated FHAP agency, based on the number of fair housing complaints resolved from July 1, 2023, to
June 30, 2024. The contractual reimbursement of funds is based on activities conducted within the preceding twelve -months (Performance
Period). Diversity and Inclusion Departmental staff, on behalf of the Fort Worth Human Relations Commission, resolved 44 complaints during this
period. Additional funds are awarded to qualifying FHAP agencies for administrative costs and training.
The Cooperative Agreement provides payment for the following:
• Resolution of 44 housing discrimination complaints in the amount of $118,400.00;
• Post -Cause supplemental pay in the amount of $0.00;
• Administrative costs in the amount of $32,000.00; and
• Training funds in the amount of $12,000.00 for mandatory HUD training.
The addition of accrued interest from Cooperative Agreement funds in an amount up to $50,000.00, based upon actual receipts, brings the total to
an amount of $212,400.00.
The Grant is a pay -for -performance grant, where the amount awarded is for services previously rendered. Currently, two employees' salaries are
paid with the funds received as part of this FHAP contract and funding from prior FHAP contracts: One (1) Human Relation Manager totaling
$91,430.35, 100% Grant funded and one (1) Human Relation Investigator totaling $68,526.00, 100% Grant Funded. If funding ends, for example if
HUD decides to terminate the contract in the future, the affected employees will not yet have performed the services for the next contract year.
There may be several options to retain high -performing talent should that occur, including having the employee remain in the function through
General Funds, or the employee may seek employment elsewhere, within or outside the City.
Restoring Funds for Ineligible Expenditures
Diversity & Inclusion Department (DVIN) management, in coordination with HUD regional staff, identified some concerns with non-FHAP
expenditures that had been charged to the grant funds.
Following further review conducted in cooperation with the Internal Audit and Financial Management Services (FMS) Departments, a total of
$449,002.34 was identified as having been charged against FHAP in a combination of ineligible expenditures and potentially eligible
expenditures for which there was inadequate documentation.
In consultation with HUD and the other stakeholder departments, DVIN developed a plan to correct the prior funding errors and improve processes
going forward. Internal controls and training are being enhanced, easier to use reporting formats are being developed, and the City agreed to
absorb the ineligible costs in its General Fund in order to restore the grant funds associated with the ineligible and inadequately documented
expenditures.
Restoration of FHAP funds will be accomplished by transferring the costs that were determined to be ineligible from the Grants Operating Federal
Fund to the Diversity & Inclusion Department's Operating Budget within the General Fund. A combination of current year savings and the
appropriations in Recommendation 4 above will be used to balance these expenditures in the DVIN budget. Moving the expenditures out of the
Grants Fund, will restore $449,002.34 in that fund, which are then being re -appropriated as part of Recommendation 3 to be used for eligible
FHAP expenses moving forward.
A Form 1295 is not required because: This contract will be with a governmental entity, state agency or public institution of higher education: US
Department of Housing and Urban Development
FISCAL INFORMATION 1 CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds
will be available in the current operating budget, as appropriated, in the Grants Operating Federal Fund and the General Fund. The Diversity and
Inclusion Department (and Financial Management Services) will be responsible for the collection and deposit of funds due to the City. Prior to
expenditures being incurred, the Diversity and Inclusion Department has the responsibility to validate the availability of funds. This is a fee for
service grant.
Submitted for VW Manager's Office bT ❑ana Burghdoff 8018
Originating Business Unit Head: Christina A. Brooks 8988
Additional Information Contact:
Expedited