HomeMy WebLinkAboutIR 7759 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7759
To the Mayor and Members of the City Council September 21, 1993
Subject:
GREATER SOUTHWEST INTERNATIONAL AIRPORT -
SALE PROCEEDS
The City has received a total of$23,539,787.43 in proceeds from the sale of Greater
Southwest International Airport (GSIA). With the exception of $1,188,608.43 in
"Possession Fees" which were received and used in the Aviation Department's
operating fund, the remaining $22,351,179 have been placed in the Capital Projects
Reserve Account.
The Capital Projects Reserve Account was established in 1979 (M&C G-4167) to
accumulate proceeds from the sale of real property assets and reimbursements from
other governmental agencies. The funds in this Reserve Account were to be
appropriated for capital projects.
In the 1979 M&C, the Council adopted the following policy relative to the GSIA sale
proceeds:
1. Resolve all appropriate claims of the Federal government as
to use of proceeds;
2. First additional proceeds (after Federal claims) go into a
fund to defease any outstanding revenue bonds ($3,865,000 as
of April 30, 1979);
3. Next additional proceeds repay General Fund advances
($10,635,382 to the Airport Fund) to be placed in the Capital
Projects Reserve Account.
4. Any additional proceeds, go into Capital Projects Reserve
Account and be earmarked specifically for future airport
improvements.
In 1984, the City and the FAA agreed that $3,100,000 would resolve the Federal
claims on the GSIA proceeds.
An Informal Report to Council in 1984 stated that $2,278,347 would be placed into
the Airports Debt Service Fund to service the remaining outstanding revenue debt
associated with GSIA.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7759
To the Mayor and Members of the City Council September 21, 1993
Page 2 of 3
Subject: GREATER SOUTHWEST INTERNATIONAL AIRPORT -
SALE PROCEEDS
Since 1985, Council M&C's indicate $9,616,828 has been expended from the Capital
Projects Reserve Account for land purchases and improvements at the following
airports:
Spinks $4,790,811
Meacham 3,925,144
Alliance 741$775
All 159,098
Total $9,616,828
The $7,356,004 remaining balance from the $22,351,179 GSIA proceeds transferred
into the Capital Projects Reserve Account has been appropriated for other capital
projects (e.g., ADA Compliance, Environmental Remediation Projects, Will Rogers
Auditorium, etc.). The $7.3 million does not yet equal the General Fund advances
to the Airport Fund ($10,635,382 in 1979 and an additional $2,693,000 since then).
To fully repay the General Fund advances to the Airport Fund, $5,972,378 of the
future GSIA sale proceeds will need to be used for other capital projects and
expenditures. The remaining GSIA payments from FY94-FY98 (not including the
"Possession Fees") total $6,347,996. Under the Council's 1979 policy for GSIA sale
proceeds, $375,618 of that amount would be available in the Capital Projects Reserve
Account for the fourth priority - future airport improvements.
In summary, the GSIA sale proceeds have been expended in the following manner:
Total GSIA Sale Proceeds (6/81-6/93) $23,539,787
Retained in Airport Operating Fund 1,188,608
Transferred to Capital Projects Reserve Fund 22,351,179
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7759
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To the Mayer and Members of the City Council September 21, 1993
Page 3 of 3
Subject: GREATER. SOUTFIWEST IERNATIONAL AIRPORT -
SALE PROCEEDS
Priorities for Sale Proceeds
(M&C G4167, 5/8/79)
Target Paid Due
1. Resolve Federal Claims $3,100,000 $3,100,000 -0-
2. Defease outstanding revenue 3,865,000 2,278,347 -0-
bonds
3. Repay General Fund Advances 13,328,382 7,356,004 5,972,378
to Airport Fund ($10,635,382 in
1979 and $2,693,000 from FY80-
FY92)
4. Future airport improvements 8,405,793 9,616,828 375,618
(Proceeds remaining after
Priorities 1, 2, and 3)
F7Total Paid on 1979 Priorities $28,699,175 $22,351,179 $6,347,996
Remaining GSIA Payments $6,347,996
(FY94-FY98)
/Pli Bob Terrell
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS