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Home My WebLink About26-28736 - City Council - OrdinanceORDINANCE 26-28736 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE FLEET & EQUIPMENT SERVICES FUND IN THE AMOUNT OF $195,258.00, FROM AVAILABLE NET POSITION, FOR THE PURPOSE OF COVERING PROJECTED OPERATING SHORTFALLS DUE TO UNEXPECTED SIGNIFICANT INCREASES IN FUEL PRICES AND FLEET OUTSIDE REPAIR AND MAINTENANCE COSTS; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS THAT: SECTION 1. In addition to those amounts allocated to the various City departments for Fiscal Year 2025-2026 in the Budget of the City Manager, there shall also be increasing estimated receipts and appropriations in the Fleet & Equipment Services Fund in the amount of $195,258.00, from available net position, for the purpose of covering projected operating shortfalls due to unexpected significant increases in fuel prices and fleet outside repair and maintenance costs. SECTION 2. 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. This ordinance shall be cumulative of Ordinance 27979-09-2025 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: Michael Dc�;s (Sep 28, 2026 17:00:25 CDT) Assistant City Attorney ADOPTED: Sentember 15.2026 EFFECTIVE: Sentember 15.2026 Jannette S. Goodall City Secretary Ordinance No. 26-28736 Page 1 of 1 FORT WORTH MAYOR AND COUNCIL COMMUNICATION 7.1.9 FLEET & EQUIPMENT SERVICES FUND ADDITIONAL APPROPRIATIONS DATE: 09/15/26 M&C FILE NUMBER: M&C 26-0830 DEPARTMENT: PROPERTY MANAGEMENT SUBJECT (ALL) Adopt Appropriation Ordinance Enacting Fiscal Year 2026 Budget Adjustments in the Fleet & Equipment Services Fund in the Amount of $195,258.00 by Allocating Projected Current -Year Revenues to Offset Projected Operating Shortfalls and Amend the Fiscal Year 2026 Adopted Budget to a Total Adjusted Budget of $51,541,462.00 RECOMMENDATION It is recommended that the City Council: Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Fleet & Equipment Services Fund in the amount of $195,258.00 from available net position for the purpose of covering projected operating shortfalls due to unexpected significant increases in fuel prices and fleet outside repair and maintenance costs; and 2. Amend the Fiscal Year 2026 Adopted Budget. DISCUSSION The purpose of this Mayor and Council Communication (MSC) is to recognize additional Fleet & Equipment Services revenue projected to be received by the Property Management Department due to higher -than -expected price for bulk and commercial fuel, higher than budgeted use of commercial fuel, and increased outside repair costs related to repair and maintenance of the City's fleet during the fiscal year. Fleet & Equipment Services Fund Per Ordinance No. 27979-09-2025 Section 5, the Fiscal Year (FY) 2026 adopted budget for the Fleet & Equipment Services Fund was $51,199,586.00. Per M&C 26-0061, an additional appropriation to transfer funds to the Group Health Insurance Fund increased the budget by $146,618.00 to $51,346,204.00. This M&C recommends an increase in appropriations of $195,258.00 for an adjusted FY2026 budget of $51,541,462.00. Expenditure appropriations in the General Operating and Maintenance accounts will increase by $195,258.00. Due to the unexpected significant increase in fuel prices, along with higher - than -expected consumption of commercial fuel, the Fleet Division has forecasted to be over budget by $1,078,809.00. The estimated overage is based on actual usage and pricing from 1 of 3 FORT WORTH October through June, and the forecasted usage and pricing for July, August and September. Additionally, there has been greater demand for outside repairs services as a result of loss of tenured staff with expertise in heavy equipment, increased vacancies related to the hiring freeze, and growing and aging fleet, which combined resulted in higher -than -expected outside repair costs of $856,900.00. The overage in outside repairs is partially offset by projected salary and benefit savings in the amount of $441,024.00 as well as lower than expected cost for parts in the amount of $1,292,822.00. To balance the increase in expenditures, the use of net position will be appropriated until revenue is collected from user departments, which is expected to occur by the end of the Fiscal Year. Funding is available for appropriation in the net position balance of the Fleet and Equipment Services Fund. The net position balance as of June 30, 2026, was $7,738,427.86. The new net position balance after this M&C will be $7,543,169.86. The action in this MSC will amend the Fiscal Year 2026 Adopted Budget as approved in connection with Ordinance 27979-09-2025, Section 5. Internal Service Funds, as listed on page 18. Fund / Department Budget Category Equipment Services Fund Revenues Charges for Services Use of Money and Property Other Revenue Sales of Capital Asset Salvage Sales FY2026 Adopted Budget $ 51,131,637.00 $39,557.00 $ 3,746.00 $11,888.00 $12,758.00 Authority Budget Revised FY2026 Adjustment Budget $ 51,131,637.00 $39,557.00 $3,746.00 $11,888.00 $12,758.00 Use of Net Position $0.00 M&C 26-0061 $146,618.00 $146,618.00 Total Revenues $51,199,586.00 This M&C Rec 1 $195,258.00 $195,258.00 $341,876.00 $51,541,462.00 2 of 3 FORT WORTH Expenditures Property Management $49,854,847.00 This M&C Rec 1 $195,258.00 $50,050,105.00 Transfer to General Fund $79,993.00 $79,993.00 Transfer to Group Health Insurance Fund $0.00 MSC 26-0061 $146,618.00 $146,618.00 Transfer to Capital Fund $1,264,746.00 $1,264,746.00 Total Expenditures $51,199,586.00 $341,876.00 $51,541,462.00 This M&C does not request approval of a contract with a business entity. This will serve ALL COUNCIL DISTRICTS. FISCAL IN FORMATION/CERTIFICATION The Director of Finance certifies that funds are currently available from net position within the Fleet & Equipment Sery Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the Fleet & Equipment Sery Fund as appropriated. 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 BY: ORIGINATING BUSINESS UNIT HEAD: ADDITIONAL INFORMATION CONTACT: ATTACHMENTS Valerie R. Washington, # 6192 Marilyn Marvin, # 7708 Eliana Guevara, # 5199 1. ORD APP 21 Fleet Equipment Services Fund Additional Appropriations AO26 rl [7.1.9.2 - 2 pages] 3 of 3