HomeMy WebLinkAboutOrdinance 25803-10-2022 ORDINANCE NO. 25803-10-2022
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE WATER AND SEWER ENDOWMENT GAS LEASE
FUND,IN THE AMOUNT OF$447,781.35,FROM AVAILABLE FUNDS,FOR THE
PURPOSE OF TRANSFERRING TO THE WATER AND SEWER GAS LEASE
CAPITAL PROJECT FUND; 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 2021-2022 in the
Budget of the City Manager,there shall also be increased estimated receipts and appropriations in the Water
and Sewer Endowment Gas Lease Fund in the amount of$447,781.35,from available funds,for the purpose
of transferring to the Water and Sewer Gas Lease Capital Project Fund.
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 25073-09-2021 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said prior ordinances and appropriations are hereby expressly repealed.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
Jannette S.Goodall(Ocf'24,2022 16:28 CDT)
Jannette S.Goodall
Assistant City Attorney City Secretary
OF FAR
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ADOPTED AND EFFECTIVE:October 11,2022 * ��
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/11/22 M&C FILE NUMBER: M&C 22-0824
LOG NAME: 13GAS WELL TRUST DISTRIBUTION 2022
SUBJECT
(ALL)Authorize Distribution of Available Income in the Amount of$8,565,950.76 from the City's Mineral Revenue Trust, Known as The Fort Worth
Permanent Fund,for Projects Meeting Designated Purposes and Adopt Appropriation Ordinances; Furthermore,the Actions in this Mayor&
Council Communication Only Authorize the Distribution of Available Income,and Subsequent Appropriations will be Required to Authorize
Expenditures from this Distribution
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize distribution in the amount of$8,565,950.76 in available income from the City's Mineral Trust Fund,The Fort Worth Permanent
Fund,commensurate with the terms of the amended trust document;and
2. Adopt the attached appropriation ordinances increasing estimated receipts and appropriations in the listed Gas Lease Endowment Funds
in the cumulative amount of$8,565,950.76 for the purpose of transferring to their respective Gas Lease Capital Projects Funds,and the
General Endowment Fund for the purpose of transferring to the General Fund to fund public art and other eligible uses,in accordance with
the City Council approved Financial Management Policy Statements. The allocations are as follows:
o Aviation Endowment Gas Lease Fund in the amount of$5,336,808.03,for transfer to the Aviation Gas Lease Cap Projects Fund;
o PARD Endowment Gas Lease Fund in the amount of$1,443,503.45,for transfer to the Park and Recreation Department Gas Lease
Cap Projects Fund ($1,037,336.86 for the restricted Parks project; $406,166.59 for the unrestricted Parks project);
o Water and Sewer Endowment Gas Lease Fund in the amount of$447,781.35,for transfer to the Water and Sewer Gas Lease Cap
Projects Fund;and
o General Endowment Gas Lease Fund in the amount of$1,337,857.93,for transfer to the General Fund for public art and other eligible
uses.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to authorize the distribution of available income from The Fort Worth Permanent
Fund (Trust),transfer to the appropriate gas lease capital project funds for eligible project funding, and transfer to the General Fund for public art
and other eligible uses.Subsequent appropriations will be required to authorize expenditure from this distribution.
In 2008,the City Council adopted amendments to the City's Financial Management Policy Statements(FMPS)to establish the Trust 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. During the first quarter of Fiscal Year 2022,the Financial Management Services Department(FMS)
issued a Request for Qualifications for Trust management services. Through that competitive process,Wells Fargo was once again selected to
serve as the Trustee(M&C 22-0212).
In accordance with the terms of the written Trust Agreement and the FMPS,the Trust is maintained as a consolidated account and divided into five
sub-accounts.Funds in the Trust are invested in accordance with the City Council adopted Investment Policy and Strategy for the Trust. In addition,
the Trustee works with the City's Chief Financial Officer/Director of Finance(CFO)to determine the amount of income available for distribution
each year. A recommendation is then brought forward the City Council for consideration. Expenditure of distributed income is subject to the
FMPS,with the funds 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 and other allowable uses.
The distribution outlined in recommendation#2 of this M&C includes no corpus of the Trust; rather, it relates only to income received from the
investments within the Trust itself.
The Nature Center Endowment Gas Lease Fund does not currently have any income available for distribution.
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 Aviation, PARD,Water/Sewer, and General Endowment Gas Lease
Funds and upon approval of the above recommendations and adoption of the attached appropriation ordinances,funds will be available in the
Aviation,PARD, and Water/Sewer Gas Lease Capital Projects Funds and the General Fund. Prior to an expenditure being incurred,the Financial
Management Services Department has the responsibility of verifying the availability of funds.
Submitted for City Manager's Office b . Reginald Zeno 8517
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Anthony Rousseau 8338