Page 27 - FortWorthFY23AdoptedBudget

Executive Message

· Meet infrastructure and service growth needs – 2018 & 2022 Bond Programs
· No use of fund balance/reserves for operations
· Improve equity of city services
· Enhance public safety
· Prepare for slower growth of resources, both near-term and into the future

To date, the City has not experienced the negative impact anticipated due to the pandemic and current economic
climate; instead, the demand for city services has increased. To accommodate the delivery of a high service level,
328 positions have been added to the FY2023 budget.

As staff worked to allocate limited resources, the inclusion or exclusion of various citywide expenditures, revenue
opportunities, individual programs, and existing service levels were all evaluated against these strategies.

As the City worked through the annual budget development process, staff updated city executive leadership on
the performance of the 2 budget. To facilitate this process, the City conducted comprehensive citywide forecasts
for months five and eight of the fiscal year to monitor current performance and to assist in the development of
the upcoming budget.

SIGNIFICANT ISSUES
Before highlighting specifics of the FY2023 budget, included below are topics that received significant attention
during the budget development process.

Economic Climate
The City faces many challenges in the post-pandemic world. Increased inflation has impacted much of the
purchasing activities throughout the organization, causing delays in projects, reduced scope of service delivery,
and increased strain on already limited resources. The upcoming budget includes funding for all necessary services
and staff will closely monitor the economy to ensure the best uses of funds. Inflation is also impacting the
employee base. Recruitment and retention have become a priority in the midst of the “great resignation” trend.
Turnover has dramatically increased and all departments are struggling to fill vacancies. Recognizing this issue,
funding was made available to Human Resources as part of the FY2023 budget to address compensation.

American Rescue Plan Act of 2021
In March 2021, the President signed the American Rescue Plan Act (ARPA), providing aid and relief to various
sectors of the United States (U.S.) economy. The City of Fort Worth's allocation from these funds totals
$173,745,090, of which a first tranche (50%), in the amount of $86,872,545 was received on May 19, 2021. The
second half of these funds were received in May of 2022, in accordance with U.S. Treasury guidelines. All funds
must be fully obligated by December 31, 2024, and fully expended by December 31, 2026. These are grant funds
and will be appropriated through Mayor & Council Communications. Therefore, the use of ARPA funds are not
included in the annual budget adoption and program objectives or the 5-year capital improvement program.

Capital Planning
The City is presenting, in conjunction with the FY2023 Adopted Budget, a 5-Year Capital Improvement Program
(CIP) which includes the planned capital projects and associated funding sources for the next five years. The
FY2022 Adopted Budget includes transfers to fund some of the projects in the first year of the CIP. Annually, a
review process is performed to identify capital needs before developing the annual operating budget. This allows

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