HomeMy WebLinkAboutResolution 3922-09-2010A Resolution
NO 3922-09-2010
RESCINDING THE FINANCIAL MANAGEMENT POLICY STATEMENT
GOVERNING AD VALOREM TAX REVENUE FROM MINERAL VALUES
WHEREAS the City of Fort Worth received ad valorem taxes of approximately
$3 8 million from mineral values in 2007 and
WHEREAS this source of revenue is expected to increase for a period of ten or
more years and then decrease gradually for many years as the natural gas resource is
depleted and the values are diminished and
WHEREAS the Gas Well Revenues Financial Management Strategy Ad Hoc
Committee assembled in 2007 recommended a policy that limited the City s reliance on
this source of ad valorem taxes for operating purposes and
WHEREAS, on January 8 2008 (M&C G 16013) the Fort Worth City Council
amended the City s financial management policy statements to address ad valorem tax
revenue associated with mineral valuations and
WHEREAS this adopted policy required an amount equivalent to taxes from this
source that exceeds $3 8 million be used for capital spending and funding of a permanent
fund for future capital spending and
WHEREAS on October 7 2008 (M&C G 16309) this policy was amended to
require that only an amount equivalent to taxes from this source that exceeds $3 27
million of the operations and maintenance levy be transferred for this purpose since the
debt levy already supports capital investment and
WHEREAS on September 15 2009 (Resolution 3784 09 2009) this policy was
suspended allowing the taxes above $3 27 million to offset General Fund expenditures in
the FY2010 budget and
WHEREAS the current economic conditions are requiring significant changes to
the City s delivery of services and
WHEREAS a rescission of this policy would allow the City to use these funds for
general fund operating expenses and to continue evaluating the long term economic
outlook without dismantling desirable services and
WHEREAS the City intends to fund critical city needs and services with this
revenue since future funding decisions for these programs can be made on an annual
basrs
ORTW.~~
T'
RESOLUTION NO 3922 09 2010
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT
The financial management policy statement governing ad valorem taxes on
mineral valuations Section I Revenues I 3 Ad Valor em Tax Revenue Management is
hereby rescinded
Adopted this 21St day of September 2010
APPROVED
ATTEST CITY COUNCIL
~~~~
~
T
~ ~
fir.
~,.
'
' SEP 212010
~- - .
B y - ~ ~' '~ w ~ - ---- --
Marty~Hendrix;-City:- ecretary~,
~`~*; ~ ~ ,~- ~ CltySecretaryoithe
City of Fort Worth, Texas
~~
~ {< R~2M
1 ~ J ~ aF' ~R~y~'~
r/
~~ ~
~ ,~~~il ~~M
a.~ ~'
1Y44l1
'
~~~1~
~
.I~„rf'~ x.~
*
~~ ~y
oxryVoKr
s