HomeMy WebLinkAboutOrdinance 18952-12-2009Ordinance No. 18952-12-20D9
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPRQPRIATf4NS
IN THE LAKE VIIQRTH TRUST FUND IN THE AMQUNT 4F $668,108.31 FROM
AVAILABLE FUNDS FOR THE PURPOSE 4F TRANSFERRING SAID FUNDS T4 THE
LAKE WORTH CAPITAL IMPROVEMENT FUND; PRQVIDING FQR A SEVERABILITY
CLAUSE; MAKfNG THIS ORDINANCE CUMULATIVE 4F PR14R ORDINANCES AND
REPEALING ALL PR14R ORDINANCES IN C4NFLfCT HEREWITH; AND PRQVIDfNG
AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CfTY 4F FQRT WORTH, TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2009-201 D and
in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in
the Lake Worth Trust Fund in the amount of $668,108,31' from available funds far the purpose of
transferring said funds to the Lake Worth Capital Improvement Fund.
SECT14N2.
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 shalt in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shalt 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 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ordinances and appropriations are hereby expressly repealed.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:
Assistant City A orney
ADOPTED AND EFFECTIVE: December 8, 2009
City of Forf Worth, Texas
Mayor and Council Communication
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CCU NCIL ACT~t~N: Apprvr~e a~~ ~ ~812D09 - Card. ~a~ 18~~~=1 ~-2DD~, ~ ~9'I -~ 2-204 &
~ 89~-1 ~-ZU0~9
DATE: Tuesday, December 08, 2009
L4G NAME: 06WATER AND SEWER OP
SUBJECT'
REFERENCE No.: G-16111
Adopt Appropriation Ordinance Increasing Appropriations in the Water and Sewer Operating Fund by
$6,864,995.05 and Transfer Funds in the Amounts of $5,359,694.88 to the Lake Worth Capital
Improvement Fund and $1,005,300.11 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
RECnMMENDATI~N:
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 $1,005,300.1 l 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 ~FElO} by $668,108.31 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
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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 Operating 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 $1,505,300.17 is available in the Water and Sewer Operating Fund from Water Department
properties leased in various locations within the City. Staff recommends that all but $500,000.00 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 Operating 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 !CERTIFICATION:
The Financial Management Services Director certifies that $500,000.00 is surplus and is eligible to be
transferred from the Water and Sewer Operating 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:
T4 FundlAccountlCenters
1 ]PE45 53$040 0609000
1) PE45 538070 0609000
2~C246 472045 601159990100
FRAM FundlAccountlCenters
1 005 300.17 2} PE45 53807a .0609000
$5,$59,694.88 3} PE45 __538040 0609000
5 359 694,88 4} PE45 538010 0609000
$5, 359, 694.88
X005, 300.17
$500,000.00
3} P245 416045 601149990100 $1 005,300.17 6 FE70 538040 030001902000
4~_GGO.1_ _ 412045 0901100 X540 000.00
5~ FElO__ 538040. 430001_902000 $66S 74$.37
6~ _C246 _ 416070. 60 ~ 1599901.00 $665 108_.37
CERTIFICATIONS:
Submitted for_C~Manag_er's ~ffic_e bx:
originating Department Head:
Fernando Costa (6122)
Susan Alanis (8180)
Jean Petr (8367)
$668 708.31
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Additional Information Contact: Melissa Ramon X8245}
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