M&C Review


COUNCIL ACTION:  Approved on 2/13/2018 - Ordinance No. 23115-02-2018

DATE: 2/13/2018 REFERENCE NO.: G-19226 LOG NAME: 03FY2017 CLOSING
CODE: G TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:  

Adopt Ordinance Adjusting Appropriations in Various Funds and Amounts to Bring Revenues and Expenditures Into Balance in Order to Finalize Fiscal Year 2017 (ALL COUNCIL DISTRICTS)


RECOMMENDATION:

It is recommended that the City Council adopt the attached ordinance adjusting receipts and appropriations in various funds as described below to bring receipts and expenditures into balance in order to finalize Fiscal Year (FY) 2017 and facilitate year-end closure and audit:

A.  Increased Appropriations Offset by Savings within Same Fund

1.  Increase estimated receipts and appropriations in certain departments of the General Fund by a combined amount of $3,368,700.00 and decrease fund balance by the same amount, which is entirely offset by savings returned to the fund balance by other departments;

2.  Increase estimated receipts and appropriations in the Municipal Parking Fund by $48,900.00 and decrease net position by the same amount, which is entirely offset by savings returned to available funds by other departments;

3.  Adjust appropriations in the Crime Control and Prevention District Fund, increasing appropriations in the Park and Recreation Department by $208,800.00 and decreasing appropriations in the Neighborhood Services Department project by the same amount;

B.  Increased Appropriations Offset by Increased Revenues

4.  Increase estimated receipts and appropriations in the Botanic Garden Special Revenue Fund by $551,900.00 from higher than budgeted revenues;

5.  Increase estimated receipts and appropriations in the Red Light Enforcement Fund by $417,300.00 from higher than budgeted revenues;

6.  Increase estimated receipts and appropriations in the Tax Increment Fund – Zone No. 10 (Lone Star) by $120,500.00 from higher than budgeted revenues;

7.  Increase estimated receipts and appropriations in the Tax Increment Fund – Zone No. 10A (Lone Star) by $26,000.00 from higher than budgeted revenues;

8.  Increase estimated receipts and appropriations in the Fleet and Equipment Service Fund by $721,100.00 from higher than budgeted revenues;

C.  Increased Appropriations Using Fund Balance/Net Position

9.  Increase estimated receipts and appropriations in the Community Tree Planting Program Fund by $5,700.00 and decrease fund balance by the same amount;

10.  Increase estimated receipts and appropriations in the Public Improvement District - 12 (Chapel Hill) Fund by $5,500.00 and decrease fund balance by the same amount;

11.  Increase estimated receipts and appropriations in the Tax Increment Fund – Zone No. 9A (Trinity River Vision) by $2,400.00 and decrease fund balance by the same amount;

12.  Increase estimated receipts and appropriations in the Municipal Parking Debt Service Fund by $1,600.00 and decrease net position by the same amount; and

13.  Increase estimated receipts and appropriations in the Municipal Airport Debt Service Fund by $200.00 and decrease net position by the same amount.

 
DISCUSSION:

The City's annual Operating Budget is formally enacted into law by City Council action adopting an appropriation ordinance that establishes spending limits for each department's operation.

The purpose of this Mayor and Council Communication (M&C) is to adjust the final budget to reflect actual performance for the year ending September 30, 2017.  Any amounts over budget must be appropriated by action of the City Council, in accordance with the City Charter (Chapter X, Section 5, Expenditures Only Pursuant to Appropriations).  This action represents the final step before the external audit can be completed and the Comprehensive Annual Financial Report published.

Appropriations reflected in the attached ordinance include increased appropriations in the budgets of certain departments to offset excess expenditures, with the total amount of all increased appropriations offset by either savings in other departments, increased revenues, or available funds.  Below is a brief explanation of the activity that caused deviations from the adopted budget:

Spending in Excess of Appropriated Budget and Offset by Savings in Other Departments

GENERAL FUND

Department                                                        Additional Appropriations

      Transportation and Public Works                        $624,900.00
Reason:  The deficit is primarily due to higher than forecasted electricity costs, which has been corrected in the FY2018 budget.

      Police Department                                                 $2,088,200.00
Reason:  Temporary increases in the authorized strength due to lower than projected attrition and additional recruit classes resulted in anticipated salary savings not being realized for the last quarter of the year and additional salaries and benefits paid for the excess civil service positions.      Municipal Court Department                                 $148,300.00 Reason:  Overage in salaries and benefits mainly due to separation pay, worker's compensation charges and unbudgeted acting pay.  

      Library Department                                                 $507,300.00
Reason:  The department had overages in temporary salaries and electricity and did not  meet anticipated salary/benefit savings.

Note on Overall General Fund Performance:  After the above-outlined increases are made, the Actual Revenues in the General Fund will still exceed Expenditures, resulting in a net contribution to fund balance of approximated $3 million on a budgetary basis.

MUNICIPAL PARKING      
Financial Management Services Department  $48,900.00
Reason:  Overage due to charges for costs related to the fund's energy-savings contracts not budgeted, but offset by savings in other departments within the fund.

CRIME CONTROL AND PREVENTION DISTRICT FUND      
Park and Recreation Department                        $208,800.00
Reason:  The Park Department had overtime charges for the late Night Program (FW@6) but those costs were offset by savings in the program at the Neighborhood Services Department's participating center.  

Spending in Excess of Appropriated Budget and Offset by Increases in Revenue

BOTANIC GARDENS SPECIAL REVENUE FUND      
Park and Recreation Department                        $551,900.00
Reason:  After this fund was created mid-year, positions were transferred from the Botanical Society for the Japanese Garden, resulting in an increase in salaries for those unbudgeted positions.  Those costs were offset by increases in revenues.  The expenditures associated with these positions and corresponding revenues were incorporated into the FY2018 adopted budget.

RED LIGHT CAMERA FUND      
Transportation and Public Works                        $417,300.00
Reason:  The Red Light Camera Fund experienced higher fine revenue of $1,050,302 that resulted in a higher payment to the State of Texas.

TAX INCREMENT REINVESTMENT ZONE #10 LONE STAR FUND      
Economic Development Department                $120,500.00
Reason:  TIF 10 and 10A are used for debt service on a bond issuance by the Lone Star Local Government Corporation.  Since inception, debt service has exceeded what the TIF has been able to pay; so all revenues received by the TIF annually are due to the Lone Star LGC.

TAX INCREMENT REINVESTMENT ZONE #10A LONE STAR FUND      
Economic Development Department                $26,000.00
Reason:  TIF 10 and 10A are used for debt service on a bond issuance by the Lone Star Local Government Corporation (LGC).  Since inception, debt service has exceeded what the TIF has been able to pay; so all revenues received by the TIF annually are due to the Lone Star LGC.

FLEET AND EQUIPMENT SERVICES FUND              
Property Management Department                        $721,100.00
Reason:  The overage is due mainly to higher outside repair costs associated with in increase in repair workload as part of the effort to increase fleet availability and is offset by corresponding revenues.

Spending in Excess of Appropriated Budget and Offset by Use of Available Funds

COMMUNITY TREE PLANTING FUND      
Park and Recreation Department                        $5,625.00
Reason:  This overage is due to salaries and benefits for filled positions coming in higher than budgeted.  Although partially by savings in operating and maintenance costs, some use of fund balance is required.

PUBLIC IMPROVMENT DISTRICT #12 CHAPEL HILL FUND      
Financial Management Services                         $5,500.00
Reason:  Overages due to additional irrigation meter monthly expense and replacement of a water pump.

TAX INCREMENT REINVESTMENT ZONE #9A TRINITY RIVER VISION FUND      
Economic Development Department                 $5,500.00
Reason:  TIF 9A reimburses the Tarrant Regional Water District for costs of the Trinity River project, which have exceeded what the TIF has paid; so all available revenues received by the TIF annually are due to the TWRD.

MUNICIPAL PARKING DEBT SERVICE      
Transportation and Public Works                      $1,600.00
Reason:  The fund incurred charges not previously budgeted.

MUNICIPAL AIRPORT DEBT SERVICE      
Aviation Department                                                $200.00
Reason:  Overage due to charges incurred to settle-up and close this 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 the adoption of the attached appropriation ordinance, funds will be available in the FY2017 operating budgets as appropriated to the various funds.

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:
Susan Alanis (8180)
Originating Department Head:
Lynda Johnson (6222)
Additional Information Contact:
Terry Hanson (7934)

 
 
ATTACHMENTS
  FY2017 CLOSING AO v2.doc