HomeMy WebLinkAboutOrdinance 24582-12-2020 ORDINANCE NO.24582-12-2020
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE TRANSFER OUT PROJECT OF THE WATER AND
SEWER ENDOWMENT GAS LEASE FUND BY $2,885,000.00, FOR THE
PURPOSE OF TRANSFERRING TO THE WATER AND SEWER GAS LEASE
CAPITAL PROJECTS FUND WITH THE INTENT OF FUNDING OPEN SPACE
ACQUISITION; 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 2020-2021 in the
Budget of the City Manager,there shall also be increased estimated receipts and appropriations in the Transfer
Out project of the Water and Sewer.Endowment Gas Lease Fund in the amount of$2,885,000.00 for the
purpose of transferring to the Water and Sewer Gas Lease Capital Projects Fund with the intent of funding
open space acquisition.
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 No. 24446-09-2020 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said prior ordinances and appropriations are hereby expressly repealed.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 TO FORM AND LEGALITY: CITY SECRETARY
forRongld P. uonzdles
tJ for Ronald P.Gonzales(Dec 4,2020 09:39 CST)
Assistant City Attorney Mary J.Kayser
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ADOPTED AND EFFECTIVE: December 1,2020
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 12/01/20 M&C FILE NUMBER: M&C 20-0869
LOG NAME: 13PERMANENT FUND(GAS WELL)TRUST AMENDMENT 2020
SUBJECT
(ALL)Authorize an Amendment to the Trust Agreement for The Fort Worth Permanent Fund for a One-Time Distribution of Corpus in the Amount of
$11,085,000.00 with the Intent of Funding Open Space Acquisition and Adopt Appropriation Ordinances
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize an amendment to the Trust Agreement for a one-time distribution of corpus from the Water and Sewer Endowment Gas Lease
Fund and the General Endowment Gas Lease Fund of the City s Mineral Trust Fund,The Fort Worth Permanent Fund,in a total amount not to
exceed$11,085,000.00;
2. Adopt the attached ordinance increasing receipts and appropriations in the Transfer Out project of the General Endowment Gas Lease Fund
by$8,200,000.00 for the purpose of transferring to the General Gas Lease Capital Projects Fund with the intent of funding open space
acquisition;and
3. Adopt the attached ordinance increasing receipts and appropriations in the Transfer Out project(City Project No. 101770)of the Water and
Sewer Endowment Gas Lease Fund by$2,885,000.00 for the purpose of transferring to the Water and Sewer Gas Lease Capital Projects
Fund with the intent of funding open space acquisition.
DISCUSSION:
The purpose of this Mayor and Council Communication(M&C)is to complete the final step needed to authorize the second amendment to the
Trust Agreement for The Fort Worth Permanent Fund to allow a one-time distribution from the trust's corpus with the intent of using the funds for
open space acquisition.
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 an agreement with Wells Fargo
Bank, N.A.(Wells Fargo),to serve as the 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 of 2013. In August 2015,the City Council completed the process for authorizing the first amendment
to the Trust,which added a definition of"income"and clarified the income-distribution process. (M&C G-18538)
At the December 3,2019 City Council work session,a presentation was made regarding the Open Space Acquisition Program,outlining the
importance of preserving open space to enhance the quality of life for the citizens of Fort Worth. In that presentation,Gas Well Trust funds were
listed as a potential funding source,and support was voiced for pursuing that possibility.
Per the terms of the Trust Agreement,amending the trust is a multi-step process that begins with formal notice to the trustee and Chief Financial
Officer. That notice was given on May 19,2020 with the adoption of a resolution(Resolution Number 5235-05-2020)and was followed by all of the
required notices and public hearings.
Following further internal discussions regarding other funding sources,including dedication fees,that might be available for park-type open space,
a decision was made to recommend excluding the Park System Endowment Gas Lease Fund from the distribution process. Therefore,the
amendment being recommended by this M&C consists of distribution of no more than$11,085,000.00 from the Water and Sewer and General
Endowment subfunds,
A formal vote on the proposed amendment is the final step in the amendment process. Affirmative vote of three-fourths of all of the members of the
City Council is required to approve the proposed amendment to the Trust Agreement.
If the amendment is authorized and executed,the corpus distribution would have to be consummated no later than December 31,2022. While it is
anticipated that distribution will likely occur prior to the end of the current year,the amendment provides flexibility regarding the date to allow staff to
respond to any unforeseen market conditions that might occur.
Staff would return to City Council with further M&Cs as needed to authorize use of the distributed funds and the actual purchases of open space.
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are currently available in the UNSPEC project within the General Endowment Gas Lease and the
Water/Sewer Endowmt Gas Lse Funds and upon approval of the above recommendations and adoption of the attached appropriation ordinances,
funds will be available in the General Endowment Gas Lease and the Water/Sewer Endowmt Gas Lse Funds for the Transfer Out project for the
intent of funding open space acquisition within the General Gas Lease Capital Prj and the Water/Sewer Gas Lease Cap Proj Funds.Prior to an
expenditure being incurred,the participating departments will be required to verify the availability of funds.
Submitted for City Manager's Office by: Jay Chapa 5804
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: John Samford 2318