HomeMy WebLinkAboutOrdinance 27929-09-2025Ordinance No.
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
GRANTS OPERATING FEDERAL FUND IN THE AMOUNT OF $870,930.00,
TRANSFERRED FROM GENERAL FUND INTEREST EARNINGS,FOR THE PURPOSE
OF FUNDING THE HEALTY CHILDHOOD:CHILD CARE PROJECT (CITY PROJECT NO.103165);
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 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 Grants
Operating Federal Fund in the amount of $870,930.00, transferred from General Fund interest earnings, for
the purpose of funding the Healthy Childhood: Child Care project (City Project No. 103165).
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 27107-09-2024 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said prior ordinances and appropriations are hereby expressly repealed.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.
CITY SECRETARY
_________________________
Jannette S. Goodall
APPROVED AS TO FORM AND LEGALITY:
___________________________________
Assistant City Attorney City Secretary
ADOPTED AND EFFECTIVE:
City of Fort Worth,
Mayor and
Texas
Council Communication
DATE: 09/16/25 M&C FILE NUMBER: M&C 25-0812
LOG NAME: 031NTEREST EARNINGS APPROPRIATION
SUBJECT
(ALL) Amend Mayor and Council Communication 25-0003 to Correct the Source of Appropriations for the Risk Financing
Fund, Enact Budget Adjustments to Recognize Unrestricted Interest Income in the General Fund Rather than Debt Service, Approve Transfers to
the Grants Operating Federal Fund, Group Health Fund, and General Capital Projects Fund in Fiscal Year 2025, and
Adopt Appropriation Ordinances
RECOMMENDATION:
It is recommended that the City Council:
1. Amend Mayor and Council Communication 25-0003 to correct the source of the $5,000,000.00 appropriation in the Risk Financing Fund as
being Fiscal Year 2024 assigned fund balance rather than interest earnings;
2. Authorize the use of Interest Earnings from Fiscal Year 2025 in the amount of $27,623,122.00 for immediate and potential future
appropriation as follows:
a. $870,930.00 for the Childcare Associates Early Learning Center;
b. $6,500,000.00 for a contribution to the Cowgirl Hall of Fame;
c. $3,100,000.00 for the Health Fund;
d. $3,129,070.00 to Panther Island Project;
e. $14,023,122.00 to fund balance
4. Adopt the attached appropriation ordinance adjusting the General Fund by recognizing and utilizing $27,623,122.00 in receipts from
unrestricted interest earnings to increase appropriations by $13,600,000.00 for transfers funding one-time special projects and other capital
needs and to reduce the use of fund balance by $14,023,122.00, thereby contributing to unassigned fund balance;
5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Grants Operating Federal Fund in the
amount of $870,930.00, transferred from General Fund interest earnings, for the purpose of funding Healthy Childhood: Child Care project
(City Project No. 103165);
6. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Group Health Fund in the amount of
$3,100,000.00, transferred from General Fund interest earnings, for the purpose of satisfying reserve requirements in the Group Health
Fund;
7. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the General Capital Projects Fund in the
amount of $3,129,070.00, transferred from General Fund, interest earnings for the purpose of funding Panther Island Bridges Phase 1
project (City Project No. 106351);
8. Designate $14,023,122.00 as Fiscal Year 2025 fund balance from Fiscal Year 2025 interest earnings in the General Fund; and
9. Amend the Fiscal Year 2025 Operating Budget.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to amend M&C 25-0003 to correct the source of the $5,000,000.00
appropriations appropriation in the Risk Financing Fund (Recommendation 5) s as being Fiscal Year 2024 assigned fund balance rather than
interest earnings and to enact budget adjustments to reallocate resources and appropriate unrestricted interest earnings to provide funding for
one-time special projects and other capital needs.
Allocation of Unrestricted Interest - Department Additional Appropriations
This M&C proposes utilizing $27,623,122.00 in unrestricted interest earnings for a variety of projects and uses as detailed below.
GENERALFUND
Cowgirl Hall of Fame contribution: $6,500,000.00
Reason: City Council previously adopted a resolution to support the Cowgirl Museum's expansion project to preserve and promote the City's
diverse history and culture through the City's high-quality museums.
Contribution to Fund Balance: $14.023.122.00
Reason: To the extent the unrestricted interest earnings are not specifically allocated and appropriated elsewhere in this M&C, staff recommends
those dollars (estimated to be $14,023,122.00) be allocated to reduce budgeted use of fund balance in the General Fund, thereby increasing the
unassigned fund balance. This action supports ongoing efforts to maintain structurally sound reserves and ensure fund balance growth remains
proportionate to anticipated expenditure growth in the proposed FY2026 budget. The allocation also supports the City's financial resiliency and
strengthens its position with credit rating agencies.
OTHERFUNDS
Group Health Fund: $3.100.00.00
Reason: Staff recommends allocating $3.1 million of current-year interest earnings to support the Health Fund's financial restoration plan. This
contribution is aligned with the goal of restoring the fund to compliance with its minimum reserve requirements. The allocation provides targeted,
near-term relief to strengthen the fund's long-term sustainability and ensure continued financial stability for the City's self-insured health plan.
General Capital Projects- General Panther Island Bridges Phase 1(Project 106351): $3.129.070.00
Reason: Funds will be used toward professional services, project management, inspection, material testing, and local participation direct costs of
bridge projects that will serve as crossings for the Tarrant Regional Water District (TRWD) phased construction of the Panther Island canals. The
local participation represents the City of Fort Worth's match to the contributions from multiple regional partners, such as the North Central Texas
Council of Governments (NCTCOG) and the Texas Department of Transportation (TxDOT), to this initiative.
Grants Operating Federal- Childcare Associates Early Learning Center: $870.930.00
Reason: Funds will be used to help cover a shortfall in the development of a new Early Learning Center to expand access to infant, toddler, and
three-year-old services in the Stop Six neighborhood. M&C 25-0780, which passed on 8/26, reallocated approximately $690,000.00 of additional
funds for this Childcare Associates project in the Stop Six neighborhood, for a total additional allocation of $1.5 million.
Description Amount
Childcare Associates Early Learning Center funded by, $870,930.00
FY2025 interest earnings
Cowgirl Hall of Fame funded by FY2025 interest $6,500,000.00
earnings
Health Fund funded by FY2025 interest earnings $3,100,000.00
Panther Island funded by FY2025 interest earnings $3,129,070.00
Fund balance contribution/Reduction of Use of Fund �14,023,122.00
Balance
Total $27,623,122.00
Recognition of Interest Earninc,�s
The City generates investment income by prudently investing idle cash from operations, "pay as you go" capital funds, and bond funds in
compliance with state law and City policy.
The existing practice, in compliance with the current Revenue Policy, is to allocate investment income from governmental funds, derived from
resources other than bond or debt proceeds, either in the City's General Debt Service Fund or in the General Fund (to one-time capital projects or
contributing to unassigned fund balance )as recommended by the City Manager.
The latest FY 2025 analysis has identified $27,623,122.00 of urnestricted and unpledged surplus interest and investment income. Staff
recommends for City Council to authorize the recognition of this unpledged and unencumbered investment income in the General Fund rather than
the Debt Service Fund in FY 2025, so that such funds can be used to fund one-time initiatives and/or capital projects as detailed herein.
Recommendation 2 of this M&C assigns this amount for such one-time projects.
Going forward, staff will monitor collection of investment income from general government operations to identify any surplus that can be used for
other lawful purposes. Given the variable nature of investment income, any surplus will generally be prioritized to fund one-time initiatives, capital
projects, or to accumulate cash which can be used to pay off debt prior to maturity to achieve debt service savings.
This action does not encompass income derived from the investment of debt proceeds, which continues to be allocated to the appropriate Debt
Service Fund in accordance with legal and policy requirements. Nor does it include investment earnings attributable to purpose-restricted funds
such as Water & Sewer, Stormwater, Crime Control Prevention District, etc. or to funds that are subject to other legal or policy constraints. Those
funds will continue to receive their appropriate allocation of investment income.
Current Fiscal Year Interest Earnings Budget
GENERALFUND
Purpose FY2025 Adopted Budget FY2025 Revised
Budget Increase Budget
Employees
Supporting $500,000.00 $0.00 $500,000.00
Debt
Cowgirl HOF $0.00 $6,500,000.00 $6,500,000.00
CCA $0.00 $870,930.00 $870,930.00
Health Fund $0.00 $3,100,000.00 $3,100,000.00
Panther Island $0.00 $3,129,070.00 $3,129,070.00
Fund Balance $0.00 $14,023,122.00 $14,023,122.00
Total $500,000.00 $27,623,122.00 $28,123,122.00
Approval of this M&C will amend the Fiscal Year 2025 Adopted Budget, as approved with Ordinance 27107-09-2024.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and the adoption of the attached appropriation ordinances,
funds will be available in the FY2025 operating and capital budgets as appropriated. Prior to any expenditure being incurred, the participating
departments have the responsibility to validate the availability of funds.
Submitted for City Manager's Office b� Dianna Giordano 7783
Originating Business Unit Head: Christianne Simmons 6222
Additional Information Contact: