HomeMy WebLinkAboutOrdinance 23239-06-2018 Ordinance No. 23239-06-2018
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
AVIATION ENDOWMENT GAS LEASE FUND IN THE AMOUNT OF$1,503,110.47, 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 2017-2018 in the
Budget of the City Manager,there shall also be increased estimated receipts and appropriations in the Aviation
Endowment Gas Lease Fund in the amount of $1,503,110.47, from available funds, 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 22927-09-2017 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said prior ordinances and appropriations are hereby expressly repealed.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 FORM ""LEGALITY: CITY SECRETARY
i
Denis C. cElroy Mary J. K s
Senior Assistant ttorney
ADOPTED AND EFFECTIVE: June 5, 2018
Heidi Coombs,CFP®,CTFA
Vice President
Senior Fiduciary Advisory Specialist
' 201 Main St.Suite 402
T9639-043
Fort Worth,TX 76102
817 334 7114 Office
817 334 7157 Fax
heidi.coombs@wellsfargo.com
April 6,2018
Aaron Bovos,CFO
City of Fort Worth
200 Texas Street
Fort Worth,TX 76102
Re: The Fort Worth Permanent Fund
Dear Aaron:
Listed below is the income available for distribution from The Fort Worth Permanent Fund as of
3/31/2018. This data was obtained from the account statements,Wells Fargo's official record of the
accounts.
45307901 The Aviation Endowment Gas Lease Fund $1,503,110.47
45307902 The Nature Center Endowment Gas Lease Fund no income available
45307903 The Restricted Park Endowment Gas Lease Fund $400,882.27
45307904 The Unrestricted Park Endowment Gas Lease Fund $221,879.17
45307905 The Water and Sewer Endowment Gas Lease Fund $304,104.04
45307906 The General Endowment Gas Lease Fund $783,738.60
Please let me know if you have any questions.
Thank you,
Heidi Coombs
Cc: Jay Rutledge
Enc.: March Statement Excerpt
Account Statement For: Period Covered: January 1,2018-March 31,2018
FORT WORTH PERMANENT FUND-CONS
EConsolidated Account Number AGG453079
ASSET DETAIL
MAAnT VMUI uwAuMmD CuaA W Acouws
Asm Duosrrm QuAwnTT PAcs As of 03/31/18 co"ll s GmILoss rind scow
Cash Alternatives
CASH
PRINCIPAL $376,558.96 $376558.96 $0.00
INCOME 27,37254 27,37254 0.00
Total Cash $403,931.30 5403,931.50 $0.00
MONEY MARKET
BLACKROCK INSTITUTIONAL FUNDS 1,259,862.580 $1,259,86258 $1,259,86258 $0.00 1.43% $1,487.54
TREASURY TRUST FUND 062
ACCOUNT NUMBER:45307901
BLACKROCK INSTITUTIONAL FUNDS 1,503,110.470 1,503,110.47 1503,110.47 0.00 1.43 1,736.97
TREASURY TRUST FUND 162
Asset held in Invested Income Portfolio
ACCOUNT NUMBER:45307901
BLACKROCK INSTITUTIONAL FUNDS 400,882.270 400,88227 400,882.27 0.00 1.43 461.95
TREASURY TRUST FUND 062
Asset held in Invested Income Portfolio
ACCOUNT NUMBER:45307903
BLACKROCK INSTITUTIONAL FUNDS 250,028220 250,028.22 250,028.22 0.00 1.43 295.46
TREASURY TRUST FUND 062
ACCOUNT NUMBER:45307903
BLACKROCK INSTITUTIONAL FUNDS 115,637.040 115,637.04 115,637.04 0.00 1.43 136.58
TREASURY TRUST FUND 062
ACCOUNT NUMBER:45307904
BLACKROCK INSTITUTIONAL FUNDS 221,879.170 221,879.17 221,879.17 0.00 1.43 258.04
TREASURY TRUST FUND 062
Asset held In Invested Income Portfolio
ACCOUNT NUMBER:45307904
BLACKROCK INSTITUTIONAL FUNDS 269,078.540 269,078.54 269,078.54 0.00 1.43 31783
TREASURY TRUST FUND 062
ACCOUNT NUMBER:45307905
11 of 203
Account Statement For: Period Covered: January 1,2018-March 31,2018
FORT WORTH PERMANENT FUND-CONS
M
Consolidated Account Number AGG453079
ASSET DETAIL (continued)
MMMT ttscw U,uuumu Cavan Accwum
Asur Ducavrm Qumm" Pace As or 03/31/10 Con 6Aas Cw/Loss YEW INCOME
Cash Alternatives (continued)
MONEY MARKET(continued)
BLACKROCK INSTITUTIONAL FUNDS 304,104.040 304,104.04 304,104.04 0.00 1.43 351.90
TREASURY TRUST FUND#62
Asset held in Invested income Portfolio
ACCOUNT NUMBER 45307905
BLACKROCK INSTITUTIONAL FUNDS 783,738.600 783,738.60 783,738.60 0.00 1.43 906.06
TREASURY TRUST FUND 362
Asset held in Invested Income Portfolio
ACCOUNT NUMBER:45307906
BLACKROCK INSTITUTIONAL FUNDS 1,193,697.440 1,193,697A4 1,193,697.44 0.00 1.43 1,407.03
TREASURY TRUST FUND#62
ACCOUNT NUMBER:45307906
Total Money Market $6,302,010.37 $6,302,010.37 $0.00 1.43% 17,35936
Total Cash Akernatives 14705,949.07 16,705,949.07 10.00 1.33% 17,359.36
12 of 203
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/5/2018 - Ordinance Nos..23239-06-2018, 23240-06-2018,
23241-06-2018 & 23242-06-2018
DATE: Tuesday, June 5, 2018 REFERENCE NO.: G-19295
LOG NAME: 13GAS WELL TRUST DISTRIBUTION 2018
SUBJECT:
Authorize Distribution in the Amount of$3,213,714.55 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$3,213,714.55 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 ordinances increasing estimated receipts and appropriations in the
listed Gas Lease Endowment Funds in the cumulative amount of$3,213,714.55, allocated as follows:
a. Aviation Endowment Gas Lease Fund in the amount of$1,503,110.47;
b. Park System Endowment Gas Lease Fund in the amount of$622,761.44;
c. Water and Sewer Endowment Gas Lease Fund in the amount of$304,104.04; and
d. General Endowment Gas Lease Fund in the amount of$783,738.60;
3. Authorize the transfer in the amount of$783,738.60 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$1,503,110.47 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$622,761.44 from the Park System Endowment Gas Lease
Fund to the Parks Gas Lease Capital Project Fund ($400,882.27 for the restricted Parks Project;
$221,879.17 for the unrestricted Parks Project) for expenditure, in accordance with the City Council
approved Financial Management Policy Statements; and
6. Authorize the transfer in the amount of$304,104.04 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:
Logname: 13GAS WELL TRUST DISTRIBUTION 2018 Page 1 of 3
DISCUSSION:
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 income 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.
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 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 $1,503,110.47 for use toward
capital projects.
2. The Park System Endowment Gas Lease Fund - distribution of income totaling $622,761.44
($400,882.27 from restricted parks; $221,879.17 from unrestricted parks) for use toward capital projects.
3. The Water and Sewer Endowment Gas Lease Fund - distribution of income totaling $304,104.04 for
use toward capital projects.
4. The General Endowment Gas Lease Fund -distribution of income totaling $783,738.60 for use toward
arts programming needs paid for within the General Fund.
The Nature Center Endowment Gas Lease Fund does not currently have any income available for
distribution.
Approval of recommendations three through six authorizes the transfer of the disbursed revenues to
corresponding capital funds.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION /CERTIFICATION:
Logname: 13GAS WELL TRUST DISTRIBUTION 2018 Page 2 of 3
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.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID I 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: John Samford (2318)
Logname: 13GAS WELL TRUST DISTRIBUTION 2018 Page 3 of 3