HomeMy WebLinkAboutOrdinance 15520Ordinance No. ~ ~~~~
AN ORDINANCE INCREASING APPROPRIATIONS IN THE GENERAL FUND
BY $54,039.10 AND DECREASING THE UNRESERVED, DESIGNATED FUND
BALANCE BY $54,039.10 FOR THE PURPOSE OF FUNDING PARTICIPATION
IN CURRENT DOCKETS AND RATE CASES AT THE TEXAS PUBLIC UTILTY
COMMISSION; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR
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 2002-
2003 in the Budget of the City Manager, there shall also be increased appropriations in the General
Fund by $54,039.10 and decreasing the unreserved, designated fund balance by $54,039.10 for the
purpose of funding participation in current dockets and rate cases at the Texas Public Utility
Commission.
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. 15184 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conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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:
Assistant City Attor
ADOPTED AND EFFECTIVE: ~ ~ ~ ~`~~
DATE REFERENCE NUMBER LOG NAME PAGE
4/15/03 ~*G-13940 02TXU 1 of 2
suB~ECT ADOPTION OF SUPPLEMENTAL APPROPRIATION ORDINANCE AND AUTHORIZATION
FOR PAYMENT TO THE STANDING .STEERING COMMITTEE OF TXU ELECTRIC
SERVICE AREA CITIES TO FUND PARTICIPATION IN DOCKETS AND RATE CASES AT
THE TEXAS PUBLIC UTILITY COMMISSION .
.RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached supplemental appropriation ordinance increasing appropriations in .the General
Fund by $54,039.10 and decreasing the unreserved, designated fund balance by the same amount; and
2. Authorize the City Manager to pay the Steering Committee of TXU Electric Service Area Cities the
sum of $54,039.10 to fund participation in current and upcoming dockets and rulemakings at the
Texas Public Utilities Commission (PUC).
DISCUSSION:
Pursuant to TXU Electric Company's franchise. to operate in the City, which was .granted in July 1993,
TXU Electric Company made a payment in advance of,$3.6 million and increased its annual payments
by 33%;. In exchange, the City agreed that .it would not exercise its right to receive reimbursement for
expenses resulting from electricity rate cases.. The City Council established a special reserve account
to pay the City's expenses in those rate cases..
Several cities including Dallas, Arlington, Waco and Irving entered into similar franchise agreements
with TXU Electric Company. On July 30, 1996 ~(M&C G-11549)., the City of Fort Worth also joined these
cities. to form a Standing Steering Committee that would be funded in advance toyenable the cities to:
respond in a timely manner to filings before the PUC. The initial assessment on the member cities was
ten cents per capita. Future assessments would depend on~ the number and extent of the rulemakings,
rate cases, and related dockets ~.iri which the cities intervened.
There. are a number of issues before the PUC associated with electric utility deregulation. The Steering
Committee's Executive Committee has determined that additional funds are needed to address these
issues. The Executive Committee recommends an additional assessment from the member cities. The
City's share on this project is $54,039.10. Payment. of this assessmept is a legitimate use for the funds
in the Electricity Rate Case Reserve Account.
Currently, $500,000.00 is designated in the unreserved, designated fund balance of the General Fund
to provide a secure source of funding for the City's participation in the TXU Electric Company rate
cases. Each fiscal year, if the designated reserve account has. fallen below the $500,0.00.00 balance,
Ordinance No. 11382,. as' amended by Ordinance No. 1436, approved by the =City Council on
September 26, 2000 (M&C G-13023), requires a deposit be made equal to the lesser of $150,000.00,
or whatever amount is necessary to return the balance of the designated reserve account to
$500,000.00..
DATE
4/15/03 REFERENCE NUMBER
'~*G-') 3940 LOG NAME
02TXU PAGE
2 of 2
suB~ECT
. ADQPTION OF SUPPLEMENTAL APPROPRIATION ORDINANCE AND AUTHORIZATION
FOR ~ PAYMENT TO THE STANDING STEERING COMMITTEE OF TXU ELECTRIC
SERVICE AREA CITIES TO FUND PARTICIPATION IN DOCKETS AND RATE CASES AT
THE TEXAS PUBLIC UTILITY COMMISSION
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies -that upon approval of recommendation No. 2 and adoption of the
attached appropriation ordinance, funds will be available in th.e current operating budget, as
appropriated, of the General Fund..
BG:k
Submitted for City Manager's FUND ACCOUNT CENTER .AMOUNT CITY SECRETARY
Office by: (to)
GG01 539120 0905500 $54,039.10 '
Bridgette Garret (Acting) 6183
Originating Department Head:
ar ~• .
Bridgette Garret (Acting) 6183 (from) APPROVED 04/1 S/03
GG01 539120 0905500 $54,039.10 ORD.#15520
Additional Information Contact:
Danny Reed 6145