HomeMy WebLinkAboutOrdinance 22452-09-2016 Ordinance No. 22452-09-2016
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS
IN VARIOUS GAS LEASE ENDOWMENT FUNDS IN THE CUMULATIVE AMOUNT OF
$2,232,485.00, ALLOCATED AS FOLLOWS: AVIATION ENDOWMENT GAS LEASE
FUND IN THE AMOUNT OF $1,006,359.00; PARK SYSTEM ENDOWMENT GAS LEASE
FUND IN THE AMOUNT OF $430,731.00; WATER AND SEWER ENDOWMENT GAS
LEASE FUND IN THE AMOUNT OF $214,663.00; AND, THE GENERAL ENDOWMENT
GAS LEASE FUND IN THE AMOUNT OF $580,732.00 FROM AVAILABLE FUNDS, FOR
THE PURPOSE OF DISTRIBUTING AND APPROPRIATING INCOME TO FUND
ELIGIBLE PROJECTS; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES
IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2015-2016 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in various
Gas Lease Endowment Funds in the cumulative amount of $2,232,485.00, from available funds, allocated
as follows: Aviation Endowment Gas Lease Fund in the amount of$1,006,359.00; Park System Endowment
Gas Lease Fund in the amount of $430,731.00; Water and Sewer Endowment Gas Lease Fund in the
amount of $214,663.00; and, the General Endowment Gas Lease Fund in the amount of $580,732.00 for
the purpose of distributing and appropriating income to fund eligible projects.
SECTION 2.
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 shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 21873-09-2015 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said prior ordinances and appropriations are hereby expressly repealed.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: CITY SECRE A
Oqj>.s C•MSG
Assists City��ney a J. e
ADOPTED AND EFFECTIVE: September 27, 2016
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/27/2016 - Ordinance Nos. 22452-09-2016 & 22453-09-
2016
DATE: Tuesday, September 27, 2016 REFERENCE NO.: G-18841
LOG NAME: 13GAS WELL TRUST DISTRIBUTION 2016
SUBJECT:
Authorize Distribution in the Amount of$2,232,485.00 in Income from the City's Mineral Trust Known as the
City of Fort Worth Permanent Fund for Projects Meeting Designated Purposes, Authorize Transfers and
Adopt Appropriation Ordinances (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the distribution in the amount of$2,232,485.00 in income from the City's Mineral Trust Fund,
the Fort Worth Permanent Fund, commensurate with the terms of the amended trust document;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
listed Gas Lease Endowment Funds in the cumulative amount of$2,232,485.00, allocated as follows:
a. Aviation Endowment Gas Lease Fund in the amount of$1,006,359.00;
b. Park System Endowment Gas Lease Fund in the amount of$430,731.00;
c. Water and Sewer Endowment Gas Lease Fund in the amount of$214,663.00; and
d. General Endowment Gas Lease Fund in the amount of$580,732.00.
3. Authorize the transfer in the amount of$580,732.00 from the General Endowment Gas Lease Fund to
the General Fund to fund arts programming, in accordance with the City Council approved Financial
Management Policy Statements.
4. Authorize the transfer in the amount of$1,006,359.00 from the Aviation Endowment Gas Lease Fund
to the Aviation Gas Lease Project Fund for expenditure, in accordance with the City Council approved
Financial Management Policy Statements.
5. Authorize the transfer in the amount of$430,731.00 from the Park System Endowment Gas Lease
Fund to the Parks Gas Lease Capital Project Fund for expenditure, in accordance with the City Council
approved Financial Management Policy Statements.
6. Authorize the transfer in the amount of$214,663.00 from the Water and Sewer Endowment Gas Lease
Fund to the Water and Sewer Gas Lease Capital Project Fund for expenditure, in accordance with the City
Council approved Financial Management Policy Statements.
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The purpose of this Mayor and Council Communication (M&C) is to take actions to distribute and
appropriate income from the City's mineral revenue trust fund so that the money can be used to fund
eligible projects and activities.
In 2008, the City Council adopted amendments to the City's Financial Management Policy Statements
(FMPS) to establish a Mineral Revenue Trust Fund known as The Fort Worth Permanent Fund (M&C G-
16013). The City Council subsequently authorized executing an Agreement with Wells Fargo Bank, N.A..
(Wells Fargo), to serve as Corporate Trustee (M&C P-11467) and all of the accumulated money that had
been designated for inclusion in the Trust was transferred to Wells Fargo in June 2013.
In accordance with the terms of the written Trust Agreement and the FMPS, the Fund is maintained as a
consolidated account and divided into five sub-accounts. Money in the Trust is invested, in accordance
with the City Council adopted Investment Policy and Strategy for the Fund (M&Cs G-17857 and G-18244).
Under the terms of the Trust Agreement, the Trustee works with City's Chief Financial Officer(CFO) to
determine the amount of income available for distribution each year. Then a recommendation is made to
the City Council for distribution procedures for the different funds of the Trust consistent with the goal to
preserve, as well as increase, the principal of the Trust. Expenditure of distributed income is subject to
expenditure, in accordance with the FMPS, with the dollars generally being available only for funding one-
time program initiatives, capital projects that comply with certain listed requirements and, in the case of
distributions from the general endowment, arts programming.
Wells Fargo has worked with the CFO to identify available income and Staff in the Financial Management
Services Department has consulted with other City departments to develop recommendations regarding
allocation of the distributable income. This distribution includes no corpus of the trust, rather it relates only
to income received from the investments within the trust itself.
The following actions are recommended for available Trust income in each of the designated sub-
accounts:
1. The Aviation Endowment Gas Lease Fund - distribution of income totaling $1,006,359.00 for use
toward capital projects.
2. The Park System Endowment Gas Lease Fund - distribution of income totaling $430,731.00
($278,370.00 from restricted parks; $152,361.00 from unrestricted parks) for use toward capital projects.
3. The Water and Sewer Endowment Gas Lease Fund - distribution of income totaling $214,663.00 for
use toward capital projects.
4. The General Endowment Gas Lease Fund - distribution of income totaling $580,732.00 for use toward
arts programming needs paid for within the General Fund.
Note: The Nature Center Endowment Gas Lease Fund does not currently have any income available for
distribution.
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, available income from
the Fort Worth Permanent Fund (Gas Lease Trust) will be transferred and appropriated as outlined within
the Recommendation section of this Mayor and Council agenda item.
Logname: 13GAS WELL TRUST DISTRIBUTION 2016 Page 2 of 3
FUND IDENTIFIERS (FIDs):
TO
Fund' Department ccoun Project Program ctivity Budget Reference # moun
J ID ID Year (Chartfield 2)
FROM
;Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact:
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