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HomeMy WebLinkAboutOrdinance 21328-07-2014 I i Ordinance No.21328-07-2014 i AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GOLF DEBT SERVICE FUND IN THE AMOUNT OF $797,253.87, DECREASING THE ASSIGNED FUND BALANCE BY THE SAME AMOUNT, FOR THE PURPOSE OF MAKING A TRANSFER TO THE MUNICIPAL GOLF FUND; PROVIDING FOR A SEVERABIL,ITY 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. i That in addition to those amounts allocated to the various City departments for Fiscal Year 2013-2014 in the Budget of the City Manager,there shall also be increased estimated receipts and appropriations in the Golf Debt Service Fund in the amount of$797,253.87,decreasing the assigned fund balance by the same amount, C for the purpose of making a transfer to the Municipal Golf Fund. i SECTION 2. i I That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or I 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. 1 That this ordinance shall be cumulative of Ordinance No. 20952-09-2013 and all other ordinances and I 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in which instance said conflicting provisions I of said prior ordinances and appropriations are hereby expressly repealed. I SECTION 4. I This ordinance shall take effect upon adoption. I I APP OVED AS TO FORM AND LEGALITY: CITY SEC TARP I I Assis t City A orney ry J. a r I ADOPTED AND EFFECTIVE: July 22,2014 a I i , I I City of Fort Worth, Texas Mayor and Council Communication I iI °�<- - _ - COUNCIL.ACTION Approved on 7/22/2014 Ordinance Nos 21'328=07 2014 & 21329-07- _; f .u_ DATE: Tuesday, July 22, 2014 REFERENCE NO.: **G-18263 LOG NAME: 80GOLFERPPHASE2 SUBJECT: Authorize Transfer in the Amount of$446,437.53 from the Golf Debt Service Fund to the Municipal Golf j Fund to Reimburse Past Debt Service Payments, Authorize Transfer of Additional Funds in the Amount of $350,816.34 from the Golf Debt Service Fund to the Municipal Golf Fund to Improve the Fund's Negative Net Position and Adopt Appropriation Ordinances (ALL COUNCIL DISTRICTS) r I I i RECOMMENDATION: I It is recommended that the City Council: i 1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Golf Debt Service Fund in the amount of$797,253.87; I' ! 2. Authorize a transfer in the amount of$446,437.53 from the Golf Debt Service Fund to the Municipal Golf Fund operating budget to reimburse previously made debt service payments; f 3. Authorize the transfer of additional funds in the amount of$350,816.34 from the Golf Debt Service Fund to the Municipal Golf Fund to improve the Funds' negative net position; and 4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the j Municipal Golf Fund in the amount of$797,253.87. I I f DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to authorize actions to improve the negative net position of the Municipal Golf Fund (Fund) by (i) transferring the amount of$446,437.53 from i the Golf Debt Service Fund to the Municipal Golf Fund to reimburse the operating fund for previously made debt service payments and (ii) transferring an additional amount of$350,816.34 to the current Municipal Golf Fund operating budget to improve the negative net position of the Fund. On May 13, 2014, a presentation was made to the City Council regarding the sustainability of the Municipal Golf Fund. That presentation noted the ongoing challenges of operating the fund as an enterprise fund and identified a projected net negative position (deficit) in the Municipal Golf Fund's operating budget by the end of the current fiscal year. The presentation noted that Golfs annual debt service payment for ERP Phase II was budgeted in the j Golf Debt Service Fund but the payment was actually made from Golfs operating fund, contributing to the projected negative net position. The presentation proposed transferring funds from the Golf Debt Service Fund to the operating fund to reimburse this past payment and also proposed transferring additional I money from the Debt Service Fund to the operating fund to improve the projected negative position. Following the presentation, the City Council directed Staff to proceed with the proposed I Logname: 80GOLFERPPHASE2 Page 1 of 2 1 transfers. i F Approval of this M&C would effectuate the proposed transfers and would reduce the Municipal Golf Fund's Fiscal Year 2014 projected net negative position from the amount of $1,109,256.00 to the amount of $312,002.13, based on mid-year re-estimates. The money will be initially appropriated in the Golf Debt Service Fund and then transferred to the Municipal Golf Fund where it will be appropriated and used for purposes of improving the net negative position. 1 NOTE ON USE OF GAS RELATED REVENUES -All of the funds at issue in this M&C come from gas 1 related revenues in the Golf Debt Service Fund. In accordance with the City's Financial Management Policy Statements (FMPS), gas related revenues derived from golf course properties, including all bonuses and royalty funds, are split between the Golf Gas Lease Capital Project Fund and the Golf Debt Service Fund. The FMPS includes expenditure criteria for gas related revenues. The eligible uses include technology with a minimum five year useful life (such as ERP Phase II) and "To replenish . . . [the] Net Position (for Enterprise Funds) . . . to meet the minimum requirements established for that fund." Therefore, the FMPS authorizes use of gas related revenue as proposed by this M&C. The golf program is a City-wide program and serves ALL COUNCIL DISTRICTS. FISCAL INFORMATION / CERTIFICATION: i The Financial Management Services Director certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the current budget, as appropriated, from the Golf Debt Service Fund. FUND CENTERS: TO Fund/AccounVCenters FROM Fund/Account/Centers 4) PE39 476102 0804090 $797.253.87 2 0) D102 538040 0132000 $797,253.87 4) PE39 539120 0804090 $797,253.87 1) D102 446200 0132000 $797,253.87 1 1) D102 538040 0132000 $797,253.87 2) PE39 476102 0804090 $446,437.53 I 3) PE39 476102 0804090 $350,186.34 I CERTIFICATIONS: a Submitted for City Manager's Office by: Susan Alanis (8180) i Originating Department Head: Richard Zavala (5711) i Additional Information Contact: Nancy Bunton (5717) a i i ; Logname: 80GOLFERPPHASE2 Page 2 of 2 4