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Home My WebLink AboutOrdinance 18950-12-2009Ordinance Nv.18950-12-2009 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPRQPRIATIQNS IN THE WATER AND SEWER FUND IN THE AMOUNT 4F $6,864,995.05 AND DECREASING THE UNRESERVED, UNDESIGNATED FUND BALANCE BY THE SAME AMOUNT FQR THE PURPOSE 4F TRANSFERRING SAID FUNDS TQ THE LAKE WORTH CAPITAL IMPROVEMENT FUND, THE WATER AND SEWER CAPITAL PROJECTS FUND AND THE GENERAL FUND; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE 4F PR14R ORDINANCES AND REPEALING ALL PR14R ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL 4F THE CITY 4F FQRT WORTH, TEXAS: SECTION 1. That in addition tv those amounts allocated to the various City departments for Fiscal Year 2009-2010 and in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Water and Sewer Fund in the amount of $6,864,995.05 and decreasing the unreserved, undesignated fund balance by the same amount for the purpose of transferring said funds to the Lake Worth Capital Improvement Fund, the Water and Sewer Capital Projects Fund and the General Fund. SECTION 2. That should any portion, section yr part of a section of this ordinance be declared invalid, inoperative yr void for any reason by a court of competent jurisdiction, such decision, opinion yr judgment shall in nv way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance No.18809 and all other ordinances and appropriations amending the same except in these instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prier ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: ~/a~. Assistant City At rney ADAPTED AND EFFECTIVE: December 8, 2009 City of Fort Worth, Texas Mayor and Council Communication ~4?+::\~,`~`SY~ F~~~;\eF{`A.4s~GSc?~. `~~ ~;:~:'.r.:\\k"`~\\\\ ;i....a~:.~.b~a:~\`~vC\~@i\\'R ~l`o,,~a,J~;.i \~S?\';~ '~,`.v",.i.•o-a:.~'sia~3,i~`a4.•p ,.; .~.,Cx~,~\:~~.~~%~z`~;~e`a~ak\\•iC'+@~`s~tt::~`;a"~~` ~C.\~~`S>>~,~5~~'a\a~:.'~x~\\\Cr\~ ~OU~ICII~ ACTION: ~p~rvv~e~ o~n ~ 2~~12~D9 ~ ord. Nt~. ~ 850-~ ~-~~~9, ~ 8~5~-~ ~-2QD9 & ~ ~~~~-1 ~-~U~ ~~';'~ i~?Eai,j'','F\°r,+AF\\!° ~F?''F~~k~i+',`w~n'~~~'F~~, ~~~R~'+,$ `~Ytr!.',;`.`~~A? ~Z '', ":~~,dC'~.;~??v ~~u``. ~".~;:: ?:.'At~?~~Ec~''~`,f^C,??s~l`,4Arva~H.~17t ~~1iT'~...., ~'~ "!1'~3C~Y~y~{~#{ I~3,? {~ ~~ ` ~i~9, '~~ i,'S~'C~@. ~~ .,,,y.. ,\.` ~.ts~~\.`~~\`~ DATE: Tuesday, December OS, 2009 LOG NAME: 06WATER AND SEWER OP SUBJECT: REFERENCE NO.: G-16711 Adopt Appropriation Ordinance Increasing Appropriations in the Water and Sewer Operating Fund by $6,864,995.05 and Transfer Funds in the Amounts of $5,359,694.SS to the Lake Worth Capital Improvement Fund and $1,005,300.1 l to the Water and Sewer Capital Projects Fund and $500,000.00 to the General Fund; Adopt Appropriation Ordinance Increasing Appropriations in the Lake Worth Trust Fund by $668,108.31 and Transfer to the Lake Worth Capital Improvement Fund and Adopt Supplemental Appropriation Ordinance in General Fund RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached appropriation ordinance increasing appropriations in the Water and Sewer Operating Fund ~PE45} by $6,864,995.05 and decreasing unreserved, undesignated fund balance by the same amount; 2. Authorize the transfer of $5,359,694.88 from the Water and Sewer Operating Fund to the Lake Worth Capital Improvement Fund (C246); 3. Authorize the transfer of $1,005,300.11 from the Water and Sewer Operating Fund to the Water and Sewer Capital Projects Fund; 4. Authorize the transfer of $500,000.00 from the Water and Sewer Operating Fund to the General Fund; 5. Adopt the attached appropriation ordinance increasing appropriations in the Lake Worth Trust Fund (FE70) by $668,708.37 and decreasing unreserved, undesignated fund balance by the same amount; and 6. Authorize the transfer of $668,708.37 from the Lake Worth Trust Fund to the Lake Worth Capital Improvement Fund (C246). DISCUSSION: In October 2001, the City received a bonus for the lease of minerals associated with a portion of Lake Worth. At the time, funds were allocated in accordance with the original 2005 Financial Management Policy Statements for gas lease revenues. Proceeds were distributed to the Water and Sewer Operating Fund for the portion associated with the water and to the Lake Worth Trust Fund for the portion associated with the land. Only the revenue from the land was to be used for the benefit of the Lake Worth properties. On January 8, 2008, the Financial Management Policy Statements were revised and directed that all of Logname: 46WATER AND SEWER OP Page 1 of 3 these funds be designated for qualified expenditures associated with the Lake Worth Capital Improvement Implementation Plan until such time as the plan projects are completed, This M&C will move all of the gas lease revenue associated with the Lake Worth leasing activities out of the Water and Sewer Gperating Fund and out of the original Lake Worth Trust Fund associated with the land to an appropriate capital fund. This will prevent the funds from being inappropriately reflected in the Water and Sewer Gperating Fund balance and will improve the reporting of funds available for implementation of the Lake Worth Capital Improvement Implementation Plan. In addition to the Lake Worth revenue that was recorded in the Water and Sewer Operating Fund, an additional $1,505,300.11 is available in the Water and Sewer Gperating Fund from Water Department properties leased in various locations within the City. Staff recommends that all but $500,004.04 of these funds be appropriated and transferred out of the operating budget and recorded in the Water and Sewer Capital Projects Fund where gas lease revenues are currently recorded for water properties. For the remaining $500,000.00 recorded in the Water and Sewer Gperating Fund, staff recommends that a surplus be declared and the funds allocated to the General Fund to contribute to the capital campaign for the new Museum of Science and History. The Water Department's bond covenants allow for the surplus funds to be used for any lawful purpose. A surplus is appropriate since the total receipts from gas revenues for Water Department properties exceeded the budgeted mineral revenues from Fiscal Year 2005 through Fiscal Year 2009 by more than $2 million. These actions will remove all gas revenues from the Water and Sewer operating fund; future receipts will all be recorded in the capital and permanent funds per the current Financial Management Policy Statements. FISCAL INF~RMATI4N I CERTIFICATION: The Financial Management Services Director certifies that $500,000.00 is surplus and is eligible to be transferred from the Water and Sewer Gperating Fund to the General Fund and upon approval of the above recommendation and adoption of the attached appropriation ordinance, funds will be available in the current operating budgets, as appropriated, of the Water and Sewer operating fund and the Lake Worth Trust Fund. Upon approval, the unreserved, undesignated fun balance of the Water and Sewer Fund will exceed the minimum reserve as outlined in the Financial Management Policy Statements. FUND CENTERS: T~ FundlAccountlCenters 1) PE45 538440 0609000 1 PE45 538010 0609000 2~ C246 412045 60.1159990100 X245 _..416045_,_601149990100 4~ GG41____412445 ._,090.1100 5~_FElO 538040, 030001902000 6~ C246. 4160.70__ 6011.599901.00 CERTIFICATIONS: FRAM FundlAccountlCenters 1 005 300.11 2 PE45 538010 0609000 ~5~5.59,694.88 3~_PE45 _ 5 359 694.88 4 PE45 1 005:300.1 l 6~ _FElO $500 400_..00 X6681108.31 $668 74$.3.7 Submitted- for City Manac,~er's office by: Originating Department Head: 538040 0609000 538410 0609000 538040 030001902000 Fernando Costa (6122) Susan Alanis (8180) Jean Petr (8367) $5 3591694.88 $1,005,300.1 l X500,000.00 668108.37 Logname: 06WATER AND SEWER GP Page 2 of 3 Additional Information Contact: Melissa Ramon X8245} Logname: o6WATER AND SEWER 0P Page 3 of 3