HomeMy WebLinkAboutResolution 3475-04-2007A Resolution
NO 3475-04-2007
APPOINTING MEMBERS OF THE GAS WELL REVENUES FINANCIAL
MANAGEMENT STRATEGY AD HOC COMMITTEE
WHEREAS, natural gas drilling, production and pipeline revenues derived from the
Barnett Shale are projected to result in a significant and unique financial windfall for the
City of Fort Worth during the next 20 years and
WHEREAS, gas well drilling, extraction and production activities in the Barnett
Shale have and will continue to result in major economic benefits for the City and the
Region, 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 variability 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 in 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 April 26 2005 the City Council established the current Gas Well
Revenue Distribution Policy in M&C G 14767 and
WHEREAS, the Gas Well Revenue Distribution Policy was incorporated into the
City of Fort Worth Financial Management Policy Statements on September 13 2005 in
accordance with M&C G 14918 and
WHEREAS, the City Council has determined the best interest of the City of Fort
Worth will be served by the establishment of the Gas Well Revenues Financial
Management Strategy Ad Hoc Committee
Resolution No 3475-04-2007
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT
1) A Gas Well Revenues Financial Management Strategy Ad Hoc Committee
is hereby established, consisting of nine members as follows
i Denny Alexander Chair
ii Lillie Biggins
iii Gina Bivens
iv Bob Crow
v Homer Dowd
vi Walker Friedman
vii Tim Petrus
viii Andrew Jose Rosell
ix Bob Terrell
2) The Gas Well Revenues Financial Management Strategy Ad Hoc
Committee is charged with considering and making recommendations to
the City Council on the following gas well revenue management strategies
and issues
i Formulate the most prudent financial strategy that maximizes and
leverages the positive impact of gas revenues for current and future
generations of Fort Worth Citizens
ii Determine the most effective expenditure and investment model to
ensure that gas revenues provide substantial benefits to the citizenry
in perpetuity
iii Design a productive, effective and dependable endowment
management plan that efficiently regulates expenditures of
endowment interest and reinvestment of interest to ensure the
perpetual growth of the corpus of the endowment funds
iv Determine the most fiscally prudent expenditure criteria for
application of the expenditure policy
v Review consider and evaluate Council Proposal No 265 Amendment
to the City Policy Concerning the Allocation of Gas Well Drilling
Revenues and Amendments to State Law Concerning the Investment
o~ those Revenues __
Resolution No 3475-04-2007
3) The committee shall consider public input in a minimum of three public
meetings, including a Town Hall Discussion during the deliberative
process of its charge from April to June of 2007
4) The Committee shall participate in a City Council Work Session in July of
2007 for the purpose of reviewing and communicating its findings and
recommendations to the City Council
5) The Committee shall operate under Roberts Rules of Order and may adopt
any necessary bylaws and protocols needed to ensure the smooth and
timely conduct of committee business and public input
6) Committee members shall serve at the pleasure of the City Council and
shall serve unless or until replaced by City Council The Committee shall
be subject to the rules applicable generally to citizen advisory committees
and shall cease to exist upon the accomplishment of the purpose for which
it was created, or unless abolished by a majority vote of the City Council
7) The Committee shall by majority vote of all of its members make
recommendations concerning the issues in the committee s charge The
City Council shall make the final determination concerning the adoption
of new policies for the wise and prudent management and disbursement of
the subject gas well revenue
Adopted this 17th day of April 2007
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Hendrix; City`~Secretary
APPROVED
CITY COU~!CIL
APK 1 7 2007
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City Secretary of the
City of Fort Worth, Texas