HomeMy WebLinkAboutResolution 3624-06-2008A Resolution
NO 3624-06-2008
CREATING AND APPOINTING MEMBERS OF THE TRUST ADVISORY COUNCIL
FOR THE FORT WORTH PERMANENT FUND AND ACKNOWLEDGING THE
APPOINTMENT OF THE INITIAL CHAIR AND VICE CHAIR OF THE TRUST
ADVISORY COUNCIL
WHEREAS, natural gas drilling, production and pipeline revenues derived from the Barnett Shale
are projected to produce significant and unique financial benefits for the City of Fort Worth (the `City")
during the next 20 years, and
WHEREAS, gas well drilling, extraction and production actwrt~es m the Barnett Shale have and will
continue to result in mayor economic benefits for the City and the regaon, and
WHEREAS, revenues from the one time gas lease bonuses and royalty collection on City property
are significant but they are also a volatile and unpredictable source of revenue subject to the vanabihty of
gas well production levels, commodity market prices, gas use levels and the pressures of ever increasing
costs of extraction, and
WHEREAS, Barnett Shale gas production is a finite resource and as a result production revenue and
tax revenue from the extraction of natural gas from the Barnett Shale are predicted to diminish over time and
WHEREAS, tax revenues have risen as a result of the increases in the property valuations of the real
property mineral estates and these valuations can be expected to elevate initially as the production of gas
increases m future phases of the Barnett Shale development but will eventually decrease as the finite amount
of gas is extracted, and
WHEREAS, the City Council, on behalf of current and future generations has expressed its
commitment, intent and desire to take full advantage of this unique opportunity to maximize the value of this
one time revenue windfall for the current and perpetual benefit of all Fort Worth citizens, and
WHEREAS, on January 8, 2008 the City Council adopted amendments to the Gas Well Revenues
Distribution Policy of the City of Fort Worth Financial Management Policy Statements, establishing a trust
fund, setting procedures for distribution and allocation of revenues derived from gas well bonus and royalty
lease revenues and ad valorem tax revenues m M&C G-16013 and
WHEREAS, the goal of the trust fund is to produce income from investments and be a long-term source
of revenue for the benefit of both present and future citizens of Fort Worth, and
WHEREAS, as set forth m M&C G-16013 the trust fund will be managed by a corporate trustee
appointed by the Crty Council (the `Trustee"); and
RESOLUTION NO 3624-06-2008
WHEREAS, the Trustee, m close cooperation with the Trust Advisory Council, will recommend to the
City Council distribution procedures for the different funds of the trust consistent with the goal to preserve, as
well as increase, the principal of the trust fund, and
WHEREAS, as set forth m M&C G-16013 a nine member citizen advisory board with rts members
having knowledge of financial control systems and procedures and the ability to evaluate the effectiveness of
allocation and investment decisions, axe to be appointed by the City Council to serve as the Trust Advisory
Council, serving m Places 1 through 9• and
WHEREAS, the Trust Advisory Council members shall serve as financial guardians of the trust ensunng
fiscal stability monitoring fund performance, and determining the amount of funds available for disbursement
annually with rts members having experience m perpetual fund management; and
WHEREAS, as set forth in M&C G-16013 the Chair and Vice Chair of the Trust Advisory Council are
to be appointed by the Mayor•
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS, THAT
1 A Trust Advisory Council is hereby established, consisting of nine members as follows
PLACE NAME
EXPIRATION OF TERM
1 Homer Dowd May 31 2011
2 Andrew Rosell May 31 2010
3 Pat Evans May 31 2011
4 Ron Casey May 31 2010
5 Bert Williams May 31 2011
6 John Robinson May 31 2010
7 Linda LeBeau May 31 2011
8 Arveda Lewis May 31 2010
9 Thomas P Lang, Jr May 31 2011
2 Contemporaneously with the adoption of this Resolution, the Mayor hereby appoints Homer
Dowd to serve as Chair of the Trust Advisory Council and John Robinson to serve as Vice Chair
of the Trust Advisory Council for terms expiring May 31 2009
As set forth m M&C G 16013 the Trust Advisory Council is charged with considering and making
recommendations to the Trustee and the City Council on gas well revenue management strategies
and issues to ensure fiscal stability of the trust fund, monitor the trust fund performance,
recommend annual disbursements to the City and recommend fund management decisions. The
City Council shall have the nght at any time to adopt or amend bylaws for the Trust Advisory
Council that specify additional duties and obligations of and procedures to be followed by the
Trust Advisory Council.
RESOLUTION NO 3624-06-2008
Approved this 10th day of June 2008
ATTEST
By•
,..
APPPOVED
CITY COUNCi~
JUN 1 4 2008
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City 5ecretaxy of the
City gat Fort Worth, Texas