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Home My WebLink AboutIR 7439 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7439 r To the Mayor and Members of the City Council January 30, 1990 Er X P!j Subject: 1073 1989 Preliminary audited figures for fiscal 1989 are now available. A review of the financial performance of the various operating funds follows. GENERAL FUND Actual revenues exceeded actual expenditures by over $7.5 million. This addition to fund balance was attained through a combination of higher-than-estimated collection of revenues ($220,232,032 actual versus $218,611,512 revised) and lower-than-estimated expenditures ($212,679,206 actual versus $223,814,411 revised) . Although the overall position of the General Fund was strengthened by this performance, certain departments within the General Fund exceeded their approved appropriation level and a supplemental appropriation will be required to close the fiscal 1989 year. It is important to note that departments were asked to absorb the 1.5% pay adjustment for departmental employees within their departmen- tal budgets. Because of the differing degree of flexibility within the various depart- ments' budgets, this was easier for some departments to accommodate than others. For 1990, the use of $2.7 million in undesignated, unreserved General Fund balance is bud- o Revenues Revenue Revised Actual Percent Category Estimate Receipts Difference Difference General Property Taxes $138,759,068 $I29,078,885 $ 319,617 0.25% sales tax 35,000,000 37,461,972 2,461,972 7.03% Other Local Taxes 7,589,000 6,582,393 (1,006,507) (I3,26%) Licenses and Permits 19,6I1,025 19,673,490 62,465 0,32% Fines and Forfeitures 4,734,275 4,382,320 ( 35I,955) ( 7.43\ Use of Money and Property 6,598,600 ' 7,237,791 639,19I 9'69% Other Agencies 1,361,794 1,085,864 ( I75,930) (13.94%) Current Services 14,I31,005 I4,053,809 ( 77,196) ( 0.55%) Other Revenue 617,829 6I8,660 I,037 0.17% Transfers 308, 916 57,039 ( 25I,877\ (81.54%) TOTAL $2I8,611'5I2 $220,452 ,005 $ I,840,493 0.84% 0 Expenditures Most departments in the General Fund completed the fiscal year within the appropriations authorized. The following departments require a year-end supplemental appropriation. Mayor and City Council $ 5,200 ' Travel , office equipment , inside repair and maintenance � ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS --�� INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7439 �,,PTIgf �DFfORP To the Mayor and Members of the City Council uA = rEXPly Subject: •e» 1989 budget performance and supplemental appropriations (continued) City Manager 37,500 Salaries, office supplies, motor pool , travel , printing, copy service, inside repair and maintenance Information Systems and Services 174,200 A requirement that funds be appropriated to accommodate the full obli- gation of lease purchase agreements caused this department to require additional appropriation for this transaction. Internal Audit 2,850 Office supplies, travel , printing, copy service, dues and memberships, office equipment Law 2,410 Salaries, copy service, printing, office supplies, postage, law library OIL books Planning 6,400 Goals for East Fort Worth program Culture and Tourism 100 Public Events 203,800 Increased number of rentals in the Equestrian Center. (Increased revenues generated by the Public Events Department to the General Fund offset this amount. ) TOTAL GENERAL FUND $ 432,460 ENTERPRISE FUNDS Municipal Golf Courses Fund Actual revenues exceeded actual expenditures total by $314,847. Of this amount, $157,460 will be required to finance encumbrance obligations which must be satisfied in the 1990 fiscal year. No additional appropriations are required. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7439 f 0 JP?P To the Mayor and Members of the City Council 4 Subject: 1989 budget performance and supplemental appropriations (continued) e r3 Airports Fund The Airports Fund again operated at a deficit. Actual revenues for the period were $1,933,356 whereas expenditures and encumbrances totalled $2,945,903 for the period. Re- tained earnings for the previous year were also negative and this trend has not been re- versed. The Airports Fund must continue to be subsidized as revenues generated from oper- ations are insufficient to cover necessary expenses. Additionally, Council is requested to approve the appropriation of an additional $200 to the Airports Debt Service Fund. Sufficient resources exist within the Airports Debt Service Fund to accommodate this sup- plemental appropriation. Water and Sewer Fund Actual revenues were less than actual expenditures for FY 1989 by $9,358,762. This will require an unplanned use of Fund retained earnings by this amount. 1988 year end retained earnings for the fund totalled $133.4 million so sufficient resources are available within the Fund to absorb this large operating loss. Municipal Parking Facilities Fund Actual revenues exceeded actual expenditures and encumbrances for the period by $98,051. OP' This performance adds to the retained earnings of the Fund which were $537,000 at 1988 year-end. For 1990, $50,000 has been budgeted as a transfer to the General Fund. Solid Waste Fund Expenditures and encumbrances of the Solid Waste Fund exceeded current year revenues by $1.5 million. Use of $715,000 of retained earnings was contemplated in the 1989 budget. The revenue shortfall will require use of additional retained earnings of the Fund which are available. No additional appropriations are required. INTERNAL SERVICE FUNDS Temporary Labor Fund Actual revenues exceeded actual expenditures total by $45,791. Although the overall posi- tion of the Fund was strengthened by this performance, expenditures and encumbrances of the Fund exceeded the approved appropriation level and a supplemental appropriation of $104,317 will be required to close the fiscal 1989 year. Prior years' retained earnings and current year revenue are sufficient to fund this appropriation. Office Services Fund Revenues exceeded expenditures and encumbrances of the Office Services Fund by $387,000. This adds to the positive retained earnings of the Fund. In 1990, $300,000 is transferred to the General Fund. No additional appropriations are required for 1989. [ ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS 4 INFORMAL REPORT TO CITY COUNCIL MEMBERS No.7439 ;V.V_0T?*?Z1 To the Mayor and Members of the City Council 1989 budget performance and supplemental appropriations (continued) exa Subject: Equipment Services Fund Revenues exceeded expenditures and encumbrances for the 1989 fiscal year by $417,976. This balance was used to offset the $2.2 million negative retained earnings of FY 1988. Excess revenues generated in FY 90 and subsequent years will be devoted to reduction of this def- icit in retained earnings. No additional appropriations are required for 1989. Reprographics Fund Actual revenues in FY 1989 exceeded actual expenditures and encumbrances by $108,737. This adds to the FY 1988 retained earnings of $39,000. No additional appropriations are required for FY 1989. Communications Fund Revenues exceeded expenditures and encumbrances for the period by $280,194. The Fund finished FY 1988 in a negative retained earnings position ($202,000). The retained earn- ings at the end of FY 89 are $95,582. SPECIAL FUNDS Lake Worth Trust Fund Revenues of the Lake Worth Trust Fund exceeded the expenditures of the Fund by $253,642. The fund balance of this account is $1,487,984. Insurance Funds Revenues exceeded expenditures for all of the insurance funds with the exception of the Group Health Insurance Fund. The revenues of the Health Insurance Fund were $16,192,654 and the expenditures for the period were $17,591,772, yielding a net loss for the fiscal year of $1.4 million. A supplemental appropriation will be required to authorize the $1,071,500 in additional expenditures incurred by the Group Health Fund in FY 89. There are insufficient resources in the fund to cover this loss which will be reflected as a negative fund balance position of this fund of $2,257,092. Recognition of future claims against the Worker's Compensation Fund as an outstanding lia- bility ($1. 96 million) yields a negative fund balance position of this fund for the 1989 fiscal year of $5.4 million. If the Council desires additional information, it will be supplied upon request. &avo�7 D a d .7i. I v c r y ii Manager -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS