HomeMy WebLinkAboutORD 1997-111 .�,.� ORDINANCE NO. 9�-�t�
� AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS RECOGNIZING THAT THE CITY OF
GRAPEVINE HAS ENCUMBRANCES AT THE END OF EACH
FISCAL YEAR AND IT IS DEEMED APPROPRIATE TO NOT
ALLOW THESE ENCUMBRANCES TO LAPSE AT YEAR END
AND TO HONOR THEM IN THE SUBSEQUENT FISCAL
YEAR; PROVIDING A SEVERABILITY CLAUSE; DECLARING
AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE
° WHEREAS, the City Council of the City of Grapevine may adopt certain policies for
operations of the financial system of the City; and
WHEREAS, a policy for administration of financial encumbrances needs to be
approved by the City Council.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS:
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Section 1. That all matters stated in the preamble to this ordinance are true and
�,,, correct and are incorporated herein as if copied in their entirety.
Section 2. Encumbrances for the purpose of this Ordinance shall be defined as
commitments related to unperformed (executory) contracts for goods and services and
shall be in the form of purchase orders, contracts, and other commitments of the City and
are used to control expenditures for the year and to enhance cash management.
Encumbrances shall be used in budgeting, and as such, are not considered expenditures
or liabilities, but represent the estimated amount of expenditures ultimately to result if
unperFormed contracts in process are completed.
Section 3. That encumbered amounts for each expiring fiscal year shall be carried
forward to the subsequent year and appropriations for said encumbrances do not lapse
at fiscal year-end; and, such appropriations shall be added to the subsequent years
budgeted amount and expenditures for such encumbered amounts shall be recognized in
the accounting period when such expenditures shall be incurred.
Section 4. Amounts encumbered for each expiring fiscal year shall be reported for
audit purposes as a reservation of year-end fund balance and such reservations shall first
,�,, be applied to the fiscal year ended September 30, 1997.
Section 5. If any section, article, paragraph, sentence, clause, phrase or word in
,,,�„ this ordinance, or application thereto any person or circumstance is held invalid or
unconstitutional by a Court of competent jurisdiction, such holding shall not affect the
validity of the remaining portions of this ordinance; and the City Council hereby declares
it would have passed such remaining portions of the ordinance despite such invalidity,
"�°'° it would have passed such remaining portions of the ordinance despite such invalidity,
which remaining portions shall remain in full force and effect.
�"' Section 6. The fact that the present ordinances and regulations of the City of
Grapevine, Texas, are inadequate to properly safeguard the health, safety, morals, peace,
and general welfare of the public creates an emergency which requires that this ordinance
become effective from and after the date of its passage, and it is accordingly so ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the �th day of October , 1997.
APPROVED:
William D. Tate
"""�" Mayor
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ATTEST:
Lmda u
City Secretary
APPROVED AS TO FORM:
- _ ,. , ,.
John F. Boyle, Jr. "
City Attorney
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