HomeMy WebLinkAboutResolution 3784-09-2009A Resolution
NO 3784-09-2009
SUSPENDING THE FINANCIAL MANAGEMENT POLICY STATEMENT
GOVERNING AD VALOREM TAX REVENUE FROM MINERAL VALUES FOR
FISCAL YEARS 2009 AND 2010
WHEREAS the City received ad valorem taxes of approximately $3 8 million
from mineral values m 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 m 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 the current economic conditions are requiring significant changes to
the City s delivery of services and
WHEREAS this policy will require the transfer of the $1 5 from the General
Fund for Fiscal Year 2009 and $4 7 million for Fiscal Year 2010 to be spent equally on
capital prod ects and to fund the permanent fund and
WHEREAS a temporary suspension of this policy would allow the City to use
these fund for general fund operating expenses and to continue evaluating the long term
economic outlook without dismantling desirable services in the short term and
ORT WORT
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RESOLUTION NO 3784 09 2009
WHEREAS the City intends to fund Directions Home and the employee vacation
buyback programs with the majority of this revenue since future funding decisions for
these programs can be made on an annual basis
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS THAT
The City Manager is directed to suspend the financial management policy
statement regarding ad valorem taxes on mineral valuations for Fiscal Years 2009 and
2010 thereby making $6 2 million available for the ongoing operations of the City
Adopted this 15th day of September 2009
ATTEST
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APPPOVED
CITY COUNCIL
SEP fl 5 2009
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City Secretary of the
City of F rt Worth, Texas
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ORT
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