HomeMy WebLinkAboutIR 9648 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9648
To the Mayor and Members of the City Council July 22, 2014
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SUBJECT: ERP PHASE II SUMMARY OF MAYOR AND COUNCIL
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The purpose of this Informal Report is to provide the City Council a summary of the four M&Cs
related to the ERP Phase II implementation, which are under consideration for July 22, 2014.
On June 10, 2014, staff briefed the City Council on the status of the ERP Phase II
implementation. During that presentation, staff highlighted project enhancements, project budget,
and several actions for future consideration.
The original project budget provided total funding of$61 ,140,089, primarily composed of debt and
pay-as-you-go financing. Certificates of Obligation (COs) were issued from the General Fund
and Golf Fund, and enterprise fund transfers comprised the pay-as-you-go portion.
The current funding level exceeds the project budget of$48,736,000 by $12,404,089. Sound
contract negotiations led to lower project costs, thereby creating excess capacity. In order to
better align resources with the project budget, staff recommended the following actions:
M&C G-18260, transfers a total of$3,468,914 from the project (ERP Capital Project and the
Specially Funded Capital Projects Fund) to the General Fund to repay a portion of the General
Fund's contribution for Phase I post-stabilization support;
M&C G-18261, transfers $3,293,494 from enterprise funds for their FY2014 contributions. In
addition, a refund of$187,628 is being made to the Municipal Airports Fund since it made a
single cash transfer at the beginning of the project. These actions, combined with reductions
applied to scheduled transfers in FY2015, represent a reduction of$3,710,057 in enterprise
fund contributions from the original schedule; and
M&C G-18262, transfers $496,366 from the project to the Golf Debt Service Fund to reduce
the debt obligation of the Golf Fund.
Together, these actions reduce the funding level to $53,464,752, which leaves excess capacity of
$4,728,752. Staff will evaluate the most prudent use of these funds and return with
recommendations in fall, 2014.
On a related note, M&C G-18263, transfers $797,253.87 from gas well revenues to the Municipal
Golf Fund. On May 13, 2014, staff outlined the sustainability of the Municipal Golf Fund. The
Golf Operating Fund paid CO debt service, which could have been paid from the Golf Debt
Service Fund. This M&C also transfers $350,816 to reduce the operating deficit.
For questions or further information, please contact Greg Jordan, ERP Director, at (817) 392 -
2836.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS