HomeMy WebLinkAboutOrdinance 21761-06-2015 Ordinance No.—
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS |N THE GENERAL FUND
|N THE AMOUNT OF $8Q7,8QS.00 FROM AVAILABLE SALES TAX REVENUE FOR THE
PURPOSE 0F FUNDING TWENTY-TWO POSITIONS BEING TRANSFERRED FR{}K8
THE CAPITAL PROJECTS SERVICES FUND TOTHE GENERAL FUND; PROVIDING
FOR ASEVERAB|L|TYCLAUSE; MAKING THIS ORDINANCE CUMULATIVE OFPRIOR
ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND
PROVIDING AN EFFECTIVE DATE.
BE |T ORDAINED 8Y 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 2014-2015 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
General Fund in the amount of $S07.8US.00' from available funds generated from Sales Tax Revenue, for
the purpose of funding twenty-two positions being transferred from the Capital Projects Services Fund to the
General Fund.
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 portiono, seotiono, or parts of sections of this ondinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 21457-09-2014 and all other ordinances and
appropriations amending the some except in those instances vvhena the provisions of this ordinance are in
direct conflict with such other ordinances and upprnpriations, 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said prior ordinances and appropriations are hereby expressly repealed.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.
LEGALITY:-APPROVED S RM AND CITY SECRE|*Rr /~
ADOPTED AND EFFECTIVE:
City of Fort Worth, Texas
Mayor and Council Communication
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COUNCIL ACTION: Approved on 6/2/2015 - Ordinance No. 21761-06-2015
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DATE: Tuesday, June 02, 2015 REFERENCE NO.: **G-18489
LOG NAME: 13CAPITAL PROJECT SERVICES FUND REALIGNMENT
SUBJECT:
Adopt Appropriation Ordinance for Twenty-Two Positions Being Transferred from the Capital Projects
Services Fund to the General Fund and Discontinue Transfer of Funding from the Capital Projects Services
Fund to the General Fund for a Twenty-Third Position (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance increasing receipts and appropriations in the General Fund in the
amount of$697,896.00 from available sales tax revenue for costs associated with twenty-two positions
being transferred from the Capital Projects Services Fund to the General Fund effective May 30, 2015;
and
2. Discontinue transfer of funds in the amount of$33,681.00 from the Capital Projects Services Fund to
the General Fund for a twenty-third position.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to implement actions realigning positions
and expenditures currently associated with the Capital Projects Services Fund (Fund) to ensure expenses
are more accurately incurred by the Fund where the benefit is being received, with available excess sales
tax revenue being appropriated to the General Fund to offset these reallocated costs.
The Fund is intended to serve as an internal service fund structured to generate revenue from the
provision of services to other City departments and from a subset of the City's capital projects. With the
dissolution of the Department of Engineering in Fiscal Year 2010, the Fund remained under the leadership
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of the Transportation and Public Works Department although substantially modified due to the
consolidation of staff from several departments.
As operating budgets contracted during the recession, a number of positions were moved to the Fund for
staff who were ostensibly supporting capital delivery. This practice has resulted in an overhead rate that
is unsustainable and an excessive shifting of costs to capital project delivery. As of the beginning of the
Fiscal Year, the Fund had an estimated negative net position (fund balance) of almost $2,300,000.00.
Currently, the Fund is used to pay the full expenses of multiple positions that provide support services to
the entire organization even though the Fund is not the only beneficiary of these services. These
positions include a Capital Team, Capital Communication position, Street Use Permit Position,
Transportation and Public Works HR Position, various Transportation and Public Works Administrative
positions, a Senior Assistant City Attorney position and administrative positions. The Fund also currently
houses the Infrastructure Plan Review Team even though its primary function is to provide service to
external customers. Approval of this M&C would reallocate 22 capital project and infrastructure plan
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review positions and their associated costs to the General Fund, where they more properly belong and
would end a transfer from the Fund to the General Fund for a 23rd position in the City Attorney's Office.
Rather than shift the budgeting funding for these positions from the Fund to the General Fund, it is
recommended that available sales tax revenues be appropriated in the General Fund to cover the costs
associated with the reallocated positions and that the funds included in the Fund's approved budget be left
in place to reduce the Fund's net position deficit.
During the first quarter of the current Fiscal Year, the City received $2,082,450.00 more in sales tax
revenue than was budgeted. Adoption of the attached ordinance would appropriate $697,896.00 of that
revenue to the General Fund to offset additional expenditures in the same amount. Expenditures in the
Fund will likewise be reduced by $697,896.00, with those savings intended to help improve the Fund's
negative net position.
In addition, it is proposed that 27 positions associated with Surveying and Materials Testing activities be
eliminated and that these functions be outsourced. The 27 positions include 13 vacancies and 14 filled
positions. The elimination of these positions will result in a reduction in fixed costs of approximately
$357,476.00 in Fiscal Year 2015, which will further improve the negative net position of the Fund.
Upon approval of this M&C, the transfer of positions will be effective May 30, 2015. The outsourcing
transition will begin later this year. Human Resources will work with displaced staff to find employment in
other departments or outside the City.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that, upon approval of the above recommendations
and adoption of the attached supplemental appropriation ordinance, the General Fund will meet the
minimum reserve policy requirements as outlined in the financial policy statements. The chart below
depicts the changes included within the supplemental appropriation ordinance:
Existin g Bud ecommended Change men ed Budget
Revenue:
State Tax Revenue ( $-12--6-,-0-
126,013,570.00 $697,896.00 $126,711,466.00
Expenditures:
Finance J $ 9,935,655.00 $203,988.00 $ 10,139,643.00
TPW $ 48,549,858.00 $493,908.00 $ 49,043,766.00
City Attorney's Office $ 6,422,787.00 $ 0.00 $ 6,422,787.00
Total $
64,-
4,908300 00 $697,896 00 $ 65,606,196 00
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
CERTIFICATIONS:
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Submitted for City Manager's Office by: Susan Alanis (8180) i
Originating Department Head: Aaron Bovos (8517)
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Additional Information Contact: Terry Hanson (7918)
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