M&C Review


COUNCIL ACTION:  Approved on 12/12/2017 - Ordinance Nos. 23035-12-2017, 23036-12-2017, 23037-12-2017 & 23038-12-2017

DATE: 12/12/2017 REFERENCE NO.: **G-19183 LOG NAME: 21LAKE WORTH TRUST FUND CLOSURE
CODE: G TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:  

Approve Transfer of Infrastructure Funds and Operating Fund Residuals from the Lake Worth Trust Fund to the Water and Sewer Fund and General Fund, Respectively, in Fiscal Year 2017, Approve the Transfer of Infrastructure Funds from the Water and Sewer Fund to the Water Capital Projects Fund in Fiscal Year 2017 and Adopt Appropriation Ordinances for Fiscal Year 2017 (COUNCIL DISTRICT 7)


RECOMMENDATION:

It is recommended that the City Council approve the following actions taken to facilitate the closure of the Lake Worth Trust Fund in Fiscal Year 2017:

1.  Adopt the attached appropriation ordinance increasing Fiscal Year 2017 estimated receipts and appropriations in the Lake Worth Trust Fund in the amount of $1,087,743.54  for the purpose of transferring residuals to the Water Capital Projects Fund;

2.  Approve a transfer from the Lake Worth Trust Fund to the Water and Sewer Fund in Fiscal Year 2017 in the amount of $1,478,853.70;

3.  Adopt the attached appropriation ordinance increasing Fiscal Year 2017 estimated receipts and appropriations in the Water  and Sewer Fund in the amount of $1,478,853.70 for the purpose of funding the Lake Worth Infrastructure Programmable Project;

4.  Approve a transfer from the Water and Sewer Fund to the Water Capital Projects Fund in Fiscal Year 2017 in the amount of $1,478,853.70;

5.  Adopt the attached appropriation ordinance increasing Fiscal Year 2017 estimated receipts and appropriations in the Water Capital Projects Fund in the amount of $1,478,853.70 for the purpose of funding the Lake Worth Infrastructure Programmable Project;

6.  Adopt the attached appropriation ordinance increasing Fiscal Year 2017 estimated receipts and appropriations in the Lake Worth Trust Fund in the amount of $410,318.01; and

7.  Approve a transfer from the Lake Worth Trust Fund to the General Fund in Fiscal Year 2017 in the amount of $410,318.01 for the operations of Lake Worth.


 
DISCUSSION:

The purpose of this Mayor and Council Communication (M&C) is to facilitate the closure of the Lake Worth Trust Fund.  The financial transactions outlined within this M&C were performed in early December in order to meet the deadline to provide the internal auditors with a complete or substantially complete trial balance on Monday, December 11th.  This M&C seeks approval to formally approve those transactions.  

The Lake Worth Trust Fund was originally established for the purpose of providing future funds to purchase real property assets upon expiration of individual leases on city-owned property surrounding Lake Worth.  Historically, the fund has also been used for maintenance of parks and green space, rehabilitation and repair of boat ramps and the purchase of several parcels of land near the Fort Worth Nature Center, in addition to funding a portion of the operating costs associated with administering leases and the Lake Worth Marshal patrol services.

In 2000, the City Council approved M&C G-12916 which established the Lake Worth Infrastructure Fund as a subaccount of the Lake Worth Trust Fund for the purpose of providing funding for water and wastewater improvements surrounding Lake Worth.  In accordance with this Council action, sale of leased properties was directed to the Lake Worth Infrastructure Fund.  The Lake Worth Trust Fund continued to have an operational side to the fund which was used for maintenance of parks and green space, costs associated with administering leases and funding the Marshals assigned to the Lake.

Starting in Fiscal Year 2018, the proceeds associated with the sale of boat stickers and lease revenues were designated for deposit in the General Fund.  This M&C moves residuals (prior year receipts) of this type from their current account to the General Fund.

Starting in Fiscal Year 2018, the proceeds from the sale of Lake Worth property will be deposited in the Water and Sewer Fund and subsequently transferred to the Water Capital Projects Fund, Lake Worth Infrastructure Programmable Project.  The Lake Worth Infrastructure Programmable Project will serve as a repository for these designated proceeds which must be expended on capital projects at Lake Worth, per prior Agreement.

Mayor and Council Communication (M&C G-19089), approved by the Council on September 12, 2017, enabled the first step in closure of the Lake Worth Fund and foreshadowed this M&C.  This M&C is the final step in the closure of the Lake Worth Trust Fund.

This M&C does not request approval of a contract with a business entity.

 
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that, upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds will be available in the current budgets, as appropriated, of the Lake Worth Trust Fund, Water and Sewer Fund, Water Capital Projects Fund, Lake Worth Infrastructure Programmable Project and the General Fund to facilitate the closure of the Lake Worth Trust Fund.  


TO
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Jay Chapa (5804)
Originating Department Head:
Steve Cooke (5118)
Additional Information Contact:
Steve Cooke (5118)

 
 
ATTACHMENTS
  21LAKE WORTH TRUST FUND CLOSURE _ 25008_AO17V1_Rev2.docx
  21LAKE WORTH TRUST FUND CLOSURE _ 25008_AO17V2_Rev2.docx
  21LAKE WORTH TRUST FUND CLOSURE _ 56001_AO17_Rev2.docx
  21LAKE WORTH TRUST FUND CLOSURE _ 56002_AO18_Rev2.docx