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HomeMy WebLinkAboutOrdinance 27040-08-2024Ordinance No. 27040-08-2024 AN ORDINANCE REALLOCATING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE PROPERTY MANAGEMENT DEPARTMENT OF THE ALLIANCE MAINTENANCE FACILITY FUND DECREASING APPROPRIATIONS IN THE TRANSFERS & OTHER CATEGORY IN THE AMOUNT OF $760,000.00, AND INCREASING APPROPRIATIONS IN THE GENERAL OPERATING AND MAINTENANCE CATEGORY BY THE SAME AMOUNT, FOR THE PURPOSE OF COVERING COSTS OF DEFERRED MAINTENANCE EXPENSES, AS WELL AS AN ASSESSMENT OF DEFERRED MAINTENANCE NEEDS AT THE ALLIANCE MAINTENANCE FACILITY; 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 the budget of the City of Fort Worth for Fiscal Year 2023-2024, as enacted by Ordinance 26453-09- 2023, as amended, is hereby further amended to make the following reallocations to amounts allocated to various City departments for Fiscal Year 2023-2024 in the Budget of the City Manager, there shall also be reallocated appropriations in the Property Management Department of the Alliance Maintenance Facility Fund decreasing appropriations in the Transfers & Other category in the amount of $760,000.00, and increasing appropriations in the General Operating and Maintenance category by the same amount, for the purpose of covering costs of deferred maintenance expenses, as well as an assessment of deferred maintenance needs at the Alliance Maintenance Facility. 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 26453-09-2023 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: ..Y2!�cra ✓l.�i�ar�z�r Assistant City Attorney ADOPTED AND EFFECTIVE: August 13, 2024 CITY SECRETARY Jannette S. Goodall City Secretary City of Fort Worth, Texas Mayor and Council Communication DATE: 08/13/24 M&C FILE NUMBER: M&C 24-0658 LOGNAME: 21CAP CLEANUP /ADD FUNDS -ALLIANCE MAINTENANCE FACILITY FUND SUBJECT (CD 10) Adopt Appropriation Ordinances Authorizing Fiscal Year 2024 Budget Adjustments in the Alliance Maintenance Facility Fund in the Amount of $370,478.00, Reducing Appropriations in the General Capital Projects Fund in the Amount of $760,000.00 and Reversing Transfers to the Alliance Maintenance Facility Fund by the Same Amount, Amend the Fiscal Year 2024 Alliance Maintenance Facility Fund Operating Budget, and Amend the Fiscal Years 2024-2028 Capital Improvement Program RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Alliance Maintenance Facility Fund in the amount of $370,478.00, from available fund balance, for the purpose of covering unexpected repairs and maintenance needed throughout the facility; 2. Adopt the attached appropriation ordinance reducing estimated receipts and appropriations in the General Capital Projects Fund in the amount of $760,000.00 from available funds in the Alliance Maintenance Facility Repair Project (City Project No. P00081) and reverse transfers to the Alliance Maintenance Facility Fund in the same amount; 3. Adopt the attached ordinance reallocating appropriations in the Alliance Maintenance Facility Fund of the Property Management Department by decreasing appropriations in the Transfers & Other category in the amount of $760,000.00, and increasing appropriations in the General Operating and Maintenance category by the same amount, for the purpose of covering costs of deferred maintenance expenses, as well as an assessment of deferred maintenance needs at the Alliance Maintenance Facility; and 4. Amend the Fiscal Year 2024 Alliance Maintenance Facility Fund Operating Budget and Amend the Fiscal Years 2024-2028 Capital Improvement Program. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to appropriate additional funds to cover unexpected repairs and maintenance at the Alliance Maintenance Facility, transfer Fiscal Year (FY) 2024 funding from the General Capital Projects Fund back to the Alliance Maintenance Facility Fund and reallocate funding within the Alliance Maintenance Facility Fund, Per Ordinance No. 26453-09-2023 Section 2, the FY2024 adopted budget for the Alliance Maintenance Facility Fund was $8,237,763.00. This M&C recommends an increase in appropriations of $370,478.00 for an adjusted FY2024 budget of $8,608,241.00. In FY2023, M&C 23-0370 authorized the execution of a lease agreement with MTU Maintenance Dallas, Inc. (MTU) which included an appropriation of $860,000.00 for completion of deferred maintenance to the space occupied by MTU. However, only $200,192.70 was spent in FY2023 because the deterred maintenance work needed to coincide with other tenant improvements that were not completed in FY2023. The remaining $659,807.30 was used to cover the cost of other unexpected expenses at the Alliance Maintenance Facility in FY2023 such as boiler and pump maintenance, electrical outage and fire system repairs, and other contractual increases including additional staffing. Per the operating lease agreement with MTU, $659,807.30 in additional deferred maintenance expenses must be spent in FY2024. The FY2024 Adopted Budget for the Alliance Maintenance Facility Fund included a total of $760,000.00 in capital transfer out appropriations for various capital projects at the Central Utility Plant. However, after reassessing capita[ needs, it has been determined that the capital projects can be completed at a later time. Therefore, $659,808.00 of the $760,000.00 originally budgeted for capital expenditures will be transferred to the Operating and Maintenance category to address the pending deferred maintenance for the space occupied by MTU. The remaining $100,192.00 will also be transferred to the Operating and Maintenance category to cover the cost of an assessment of deferred maintenance needs at the Alliance Maintenance Facility completed in FY2024. This M&C will also increase expenditure appropriations in the General Operating and Maintenance accounts by $370,478.00 for potential unforeseen repairs and maintenance needed through the Alliance Maintenance Facility in FY2024. Funding is available for appropriation in the fund balance of the Alliance Maintenance Facility Fund. The fund balance as of May 31 It. 2024 was $2,292,144.00. The new fund balance amount after this M&C will be $1,921,666.00. Also funding is budgeted in the Alliance Maint Facility Repair project within the General Capital Projects Fund. The action in this M&C will amend the Fiscal Year 2024 Adopted Budget as approved in connection with Ordinance 26453-09-2023, Section 2, as listed on page 5. Funding for the capital projects was included in the FY2024-2028 General Capital Projects Fund Capital Improvement Program for year 2024. Therefore, the action in this M&C will also amend the FY2024-2028 Capital Improvement Program as approved in connection with Ordinance 26453-09-2023. Fund/Department Budget Category Ado FY2024 Adopted p Authority Budget Changelincrease Revised FY24 Budget Budget Revenues Charges for Services $443,794.00 $0.00 $443,794.00 1 Use of Money and Property $3,121,261.00 $0.00 $3,121,261.00 Other Revenue $4,397,805.00 $0.00I $4,397,805.00 UBalancese of Fund $274,903.00 This M&C Rec 1 $370,478.00 $645,381.00 Total Revenues I$8,237,7fi3.00� $370,478.00 $8,608,241.00 Expenditures 00 0 This Property Management $7,477,763.00 M&C-Rec $1,130,478.00 $8,608,241.00 1 &2I This Transfer to Capital Fund $760,000.00 M&C (760,000.00) $0,00 Rec 2 Total $8'237,763.00 $370,478.00 $8,608,241.00 Expenditures 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 funds are currently available in the Alliance Maint Facility Repair project within the General Capital Projects Fund and in fund balance in the Alliance Maintenance Facility Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds will be available in the Alliance Maintenance Facility Fund. Prior to an expenditure being incurred, the Property Management Department has the responsibility of verifying the availability of funds. Submitted for City Manager's Office bL. Dana Burghdoff 8018 Oricrinating Business Unit Head: Marilyn Marvin 7708 Additional information Contact: Eliana Guevara 5199