HomeMy WebLinkAboutOrdinance 21450-09-2014 Ordinance No. 21450-09-2014
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GENERAL FUND IN THE AMOUNT OF $8,798,187.85,
FROM AVAILABLE FUNDS, FOR THE PURPOSE OF TRANSFERRING SAID
FUNDS TO THE MUNICIPAL GOLF FUND TO ELIMINATE THE NEGATIVE
POSITION (NEGATIVE FUND BALANCE); 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 2013-2014 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
General Fund in the amount of$8,798,1 87.85, from available funds, for the purpose of transferring said
funds to the Municipal Golf Fund to eliminate the negative position(negative fund balance).
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 No. 20952-09-2013 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of said prior ordinances and appropriations are hereby expressly repealed.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: CITY SECRETARY
As taut Ci ttorney AaJ. Ka
ADOPTED AND EFFECTIVE: September 9,2014
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 91912014 - Ordinance No. 21450-09-2014
DATE: Tuesday, September 09, 2014 REFERENCE NO.: G-18306
LOG NAME: 80GOLFDEBTELIMINATION
SUBJECT:
Adopt Ordinance Increasing Receipts and Appropriations in the General Fund in the Amount of
$8,798,187.85 from Available Funds and Authorize Transfer to the Municipal Golf Fund in the Amount Not
to Exceed $8,798,187.85 (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached supplemental appropriation ordinance increasing receipts and appropriations in the
General Fund in the amount not to exceed $8,798,187.85 and decreasing the assigned fund balance by
the same amount; and
2. Authorize a transfer in the amount not to exceed $8,798,187.85 from the General Fund to the Municipal
Golf Fund.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take actions to eliminate the negative
position (negative fund balance) of the Municipal Golf Fund.
The Municipal Golf Fund was moved from the General Fund (GF) to the newly established Golf Enterprise
Fund (GEF) in Fiscal Year 1982-1983. The GEF was profitable and self-sustaining from 1983 to 2000, but
that situation changed in recent years due to declining revenues caused by an oversaturated market.
Since 1980, a total of 28 public golf courses were built in the Fort Worth market with 20 of those openings
taking place in the 1990s and 2000s. This overbuilt market combined with minimal growth in the number
of golfers in the last two decades resulted in rounds and revenues area-wide remaining flat or declining
according to data from the National Golf Foundation. Further exacerbating the situation was the age and
condition of the City-operated courses, some over 75 years old, in comparison to the newer, state-of-the-
art facilities designed and built in the last 20 years.
Since the early 2000s, the GEF has been operating at a loss. For the first several years, cash reserves
were utilized to balance the budget each year. Upon depletion of the GEF fund balance, advances from
the GF were required in order to balance the GEF budget annually. These advances from the GF have
been noted as a negative position (negative fund balance) in the GEF, which totaled $7,995,940.85 as of
the end of Fiscal Year 2013 and a corresponding reservation has been noted in the GF as assigned fund
balance. Based on current third quarter re-estimates for Fiscal Year 2014, the GEF's operating budget is
projected to have a shortfall in the amount of$802,247.00, which would increase the GEF negative
position (negative fund balance) to a cumulative total amount of$8,798,187.85 by fiscal year's end.
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Approval of this M&C would officially appropriate the amount of$7,995,940.85 that was previously
provided by the GF to the GEF, essentially converting the money from an outstanding loan to a subsidy
and eliminating the reservation in the GF and the existing negative position in the GEF. Because this
amount has already been provided, there would be no bottom-line impact to the General Fund. The M&C
would also appropriate an additional amount of$802,247.00 to cover the anticipated shortfall in the
current year in an effort to avoid a negative position at the end of the year. These additional funds would
be provided from excess reserve in the General Fund and are the only new dollars at issue. Funds will
only be transferred to the extent of the actual shortfall and if the operating deficit is lower than expected,
then the balance will remain in the General Fund.
On May 13, 2014, the City Council noted the value of golf as a recreational activity and its importance to
the history and heritage of the City of Fort Worth. The City Council also recognized that a minimal
operating subsidy, use of gas well lease revenues to pay down enterprise systems debt and re-investment
into the golf system infrastructure would provide the most prudent, sustainable long term strategy for
golf. On October 31, 2013 and November 20, 2013, the Golf Advisory Committee and the Parks and
Community Services Advisory Board respectfully recommended that the City assist with the Municipal Golf
Fund's negative fund balance, debt and projected shortfalls for Fiscal Year 2014 and provide the
Municipal Golf Fund with an operating subsidy on a go forth basis. To this end, the proposed Fiscal Year
2015 budget includes an allocation of up to $850,000.00 as a planned subsidy for the Golf Fund.
The golf program is a City-wide program and serves ALL COUNCIL DISTRICTS.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations
and adoption of the attached supplemental appropriation ordinance, funds will be available in the current
budget, as appropriated, of the General Fund. Upon approval, the unassigned fund balance of the
General Fund will exceed the minimum reserve as outlined in the Financial Management Policy
Statements.
FUND CENTERS:
TO Fund/Account/C enters FROM Fund/Account/Centers
1) GG01 538070 0909114 $8,798.187.85 1) GG01 538070 0909114 $8,798.187.85
2) PE39 472001 080XXXX $8,798.187.85
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Richard Zavala (5704)
Additional Information Contact: Nancy Bunton (5717)
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