HomeMy WebLinkAboutIR 8270 INFORMAL REPORT TO CITY COUNCIL MEMBERS NO. 8270
TEA? Date: 8-22-00
ex To the Mayor and Members of the City Council
SUBJECT: DEMOLITION FUNDING IN CRIME CONTROL AND PREVENTION
DISTRICT FUND
During the City Council meeting on August 8, 2000, the Council was presented with information on code
compliance issues. Included in the presentation was a list of eleven properties identified as potentially
eligible for Crime Control and Prevention District (CCPD) funding, depending upon crime statistics in the
area. The anticipated cost of these demolitions is $377,000. The Council was reminded that the funding in
the CCPD budget that was previously earmarked for demolitions of substandard structures has been
designated as part of the 5% contingency funding in the CCPD budget that was approved by the City Council
and the CCPD Board. The following information should clarify the budgetary decisions surrounding the two
separate demolition programs that exist in the CCPD.
Demolition of Substandard Structures
On February 1, 2000, City staff presented a CCPD budget proposal totaling $35,546,029. Following Council
discussion, City staff was directed to establish either a five or ten-percent contingency fund to allow for the
possibility of revenue shortfalls or expenditure overruns without affecting the phase-out fund balance. The
resulting alternate budget was presented on February 8, 2000, and contained several options.
Staff identified and prioritized a variety of potential reductions in planned spending to achieve this goal. At
the top of this list was the $1,080,040 balance in funding for the demolition of substandard structures. This
funding originated as a $2.2 million appropriation in FY1997-98. No new funds have been added to this
appropriation since that time. Rather, unexpended funds have been rolled forward in subsequent years
culminating in a remaining balance of$1,080,040 in the current fiscal year. No funds have been expended
this year. In addition, no new funds are included in the operating budget for FY2001.
Historically, these demolition funds have been spent as follows:
Location Cost
Appropriation $2,200,000
Oak Brook Mall (2851 S. Riverside Drive) ($ 501,250)
Garden Terrace Apartments (5400 & 5401 Van Natta) ($ 467,972)
Silver Dime Club (2201 E. Lancaster) ($ 5,539)
Terrace Apartments (601 & 604 Luxton St.) ($ 39,406)
Castillian Villa Apartments (2351 Evans St.) ($ 13,013)
Meadow Wood Apartments (5321 Greenlee) ($ 13,036)
Big Tex Apartments (923 E. Tucker) ($ 9,23fl )
Strattford Court Apartments (5180-20 Panola) ($ 35,234)
Terra.Glen Apartments (2416 Bomar) ($ 34,900)
Audit Adiustments ($ 380)
Remaining Balance $1,080,040
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8270
�'F,E, Date: 8-22-00
� To the Mayor and Members of the City Council
n .
Page 2 of 2
SUBJECT: DEMOLITION FUNDING IN CRIME CONTROL AND PREVENTION
$T� DISTRICT FUND
At the February 8, 2000, City Council meeting, the Council decided that a five-percent contingency was
adequate and could be accomplished with budgeted unprogrammed funds and the elimination of$1,080,040
in remaining funds in the Demolition of Substandard Structures Program. A total contingency of$1,852,640
was established. At the time, Council was informed that these funds would still be available to fiznd
demolitions or any other unforeseen projects in the future but would require specific requests for funding
from the CCPD ]Board. Again, this arrangement will allow the City Council and the CCPD Board to make
decisions on some large discretionary items as revenue collections demonstrate the continued robustness of
the economy during FY2001.
Demolition of Crack Houses
This program is funded annually for $108,000 to demolish 54 residential properties each year. For the current
fiscal year, 23 houses have been demolished. Code Compliance anticipates demolishing an additional 42
poses before the end of the fiscal year, for a total of 65 houses in FY2000. Delays have occurred in this
% ogram. as the result of a pending court case in the City of Dallas. However, this has been resolved and
demolitions resumed in February. Savings have accrued in this program over the years due to the pending
court case and a lower than expected contract price. In addition, during some years, fewer houses were
demolished as a result of previously cumbersome administrative processes that have since been corrected. As
a result, a total savings of$257,816 was rolled forward during FY2000. For FY2001, this savings from prior
years will be returned to fund balance to be reallocated per the approved budget. However, on-going funding
of$108,000 has been budgeted for FY2001. The total number of houses demolished since the program's
inception, including those pending this year is 184. This is 86 below the five year goal.
Conclusion
If the Council proposes to reinstate funds for the Demolition of Substandard Structures Program, City staff
will prepare an M&C authorizing the City Manager to submit a mid-year budget adjustment to the CCPD
Board at the quarterly meeting scheduled in November. This will in effect dissolve the operating contingency
that was created at Council direction. Alternatively, the Council can postpone this request until City staff
finalizes specific properties as eligible for CCPD funding and presents a request to appropriate funds
specifically for the eligible properties.
�
Bob Terre
+1/Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS