HomeMy WebLinkAboutIR 7979 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7979
T
To the Mayor and Members of the City Council
February 20, 1996
EX 0 Subject:
Supplemental Appropriations Ordinance
to Transfer Funds from General Fund
to the Capital Projects Reserve Fund
On November 21, 1995 (M&C G-11307), the City Council adopted a set of Financial
Management Policy Statements which included a requirement that "after completion of the annual
audit, if the General Fund undesignated fund balance exceeds 10 percent (of current budgeted
expenditures), the excess shall be designated for subsequent year capital expenditures or
transferred to the Capital Projects Reserve Fund."
On the basis of the recently completed audit and current re-estimates of revenues and
expenditures, the unreserved, undesignated fund balance of the General Fund, as of September
30, 1995, was projected to be $39,556,667. With a current re-estimate of $262,535,808, the
Financial Management Policy Statement requires that $26,253,581 be maintained in the General
Fund undesignated fund balance. Strict adherence to Council policy would require the transfer
of $13,303,086 to the Capital Projects Reserve Fund. However, unanticipated changes in
revenue and expenditure patterns could cause the General Fund balance to fall below the 10
percent target. Therefore, it is recommended that only $9,000,000 be transferred at this time.
In accordance with Council policy, after the transfer to the Capital Projects Reserve Fund, these
funds will only be recommended for use "to pay capital improvements and capital equipment
having an expected useful life in excess of 10 years." During the 1995-96 budget development
process, City staff presented to Council the following projected transfers from the Capital
Projects Reserve Fund for FY 1995-96:
EXPENDITURES
Vehicle Purchases $3,369,480
Central Library Project Contingency Fund $1,000,000
ADA Improvements $500,000
Fire Alert System $400,000
East Regional Books $360,000
Meacham Noise Mitigation $300,000
Computer Aided Dispatch Consulting $250,000
Services (CAD)
Meacham Runway Work $230,000
Purchase of Lone Star Gas Building $200,000
Zoo Utility Improvements $170,000
Structured Wiring of City Hall $120,000
OFFICIAL RECOI]RD
6
CITY SECRETARY
EX.
FT. WORTH
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7979
000 Subject:ATE% To the Mayor and Members of the City Council February 20, 1996
Page 2 of 2
Supplemental Appropriations Ordinance
to Transfer Funds from General Fund
'to the Capital Projects Reserve Fund
Fort Worth Heritage Center $100,000
Fiber Connectivity-Downtown $90,000
MLK Community Center Gymnasium $63,410
Floor
Graffiti Removal Machine X0,000
......$50,000
TOTAL EXPENDITURES $7,202,890
To date, transfers have been made from the Capital Projects Reserve Fund to finance the
following projects:
Purchase of the Lone Star Gas Building $201,008
Zoo Utility Improvements $205,000
CAD Consulting Services $139,600
Vehicle Replacement $3,143,402 4%
Meacham Noise Mitigation $230,000
East Regional Library Books $360,000
Universal Power Supply and Backup
Generator for the Mainframe Computer* $ 95,000
Repairs to Parking Garage $ 17,907
TOTAL $4,391,917
*These expenditures were not included in the original budget for the Capital Projects Reserve
Fund.
TRANSFERS REMAINING TO BE MADE: $2,503,410
An additional $2.5 million in transfers from the Capital Projects Reserve Fund must be made to
fund the projects discussed with Council during the 1995-96 budget process. However, the
amount required to fund the projects may be greater than $25 million, since the actual cost of
some of the projects remaining to be funded are expected to exceed the original estimates. The
current balance in the Capital Projects Reserve Fund is $724,170. . Consequently, the
recommended transfer of $9,000,000 from General Fund balance is required to' fund the
remainder of the projects scheduled for 1995-96.
`Bob"Bob"T iarrell
City 'manager--
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS—.—