HomeMy WebLinkAbout28546-06-2026 - City Council - OrdinanceOrdinance No.28546-06-2026
AN ORDINANCE ADJUSTING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
WATER/SEWER ENDOWMENT GAS LEASE FUND, BY INCREASING ESTIMATED
RECEIPTS AND APPROPRIATIONS IN THE DISTRIBUTION — GAS WELL PROJECT (CITY
PROJECT NO. 106958) IN AN AMOUNT OF $69,440.58 FOR THE PURPOSE OF CORRECTING
THE APPROPRIATION FROM THE ORDINANCE TO MATCH THE DISTRIBUTION FOR FY2025;
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 2024-2025 in the
Budget of the City Manager, there shall also be adjusted estimated receipts and appropriations in the
Water/Sewer Endowment Gas Lease Fund, by increasing estimated receipts and appropriations in the
Distribution — Gas Well project (City Project No. 106958) in an amount of $69,440.58 for the purpose of
correcting the appropriation from the ordinance to match the distribution for FY2025.
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.
6*1011GIZIN
That this ordinance shall be cumulative of Ordinance 27107-09-2024 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said prior ordinances and appropriations are hereby expressly repealed.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 Attorney
ADOPTED AND EFFECTIVE: June 09 2026
CITY SECRETARY
Jannette S. Goodall
City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06/09/26 M&C FILE NUMBER: M&C 26-0451
LOG NAME: 13GAS WELL TRUST DISTRIBUTION 2026
SUBJECT
(ALL) Authorize Distribution of Available Income, in the Amount of $2,570,339.93 from the City's Mineral Revenue Trust, Known as The Fort Worth
Permanent Fund, for Projects Meeting Designated Purposes, Adopt Appropriation Ordinances to Distribute to the Respective Gas Lease
Endowment Funds Fiscal Year 2026 in the Amounts of $2,024,083.18 and Fiscal Year 2025 in the Amounts of $688,404.17, and Amend the Fiscal
Year 2025 Adopted Budget
RECOMMENDATION:
It is recommended that the Citv Council:
1. Authorize distribution of available income, in the amount of $2,570,339.93 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 $2,024,083.18, from available gas lease royalty revenue, for the purpose of transferring to their
respective Gas Lease Capital Projects Funds, in accordance with the City Council approved Financial Management Policy Statements,
allocations are as follows:
a. Aviation Endowment Gas Lease Fund in the amount of $1,389,395.33, for transfer to the Aviation Gas Lease Capital Projects Fund;
b. PARD Endowment Gas Lease Fund in the amount of $477,856.71, for transfer to the PARD Gas Lease Capital Project Fund
($376,514.60 for the Restricted Parks project; $101,342.11 for the Unrestricted Parks project);
c. Water/Sewer Endowment Gas Lease Fund in the amount of $156,831.14, for transfer to the Water/Sewer Gas Lease Capital Project
Fund; and
3. Adjust estimated receipts and appropriations in the listed Gas Lease Endowment Funds in the cumulative amount of $688,404.17 for the
purpose of correcting the appropriation from the ordinance to match the distribution for Fiscal Year 2025:
a. Increasing estimated receipts and appropriations in the Aviation Endowment Gas Lease Fund in the amount of $468,719.82;
b. Increasing estimated receipts and appropriations in the PARD Endowment Gas Lease Fund in the amount of $150,243.77;
c. Increasing estimated receipts and appropriations in the Water/Sewer Endowment Gas Lease Fund in the amount of $69,440.58 and;
4. Amend the Fiscal Year 2025 Adopted Budget.
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 other eligible uses. Subsequent expenditures will be authorized during Fiscal Year (FY) 2027.
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 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 FY 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
six 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 to 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 the recommendation of this M&C includes no corpus of the Trust; rather, it relates only to income received from the
investments within the Trust itself.
Recommendation three includes additional appropriations to correct the appropriation from the ordinance 27107-09-2024 so that they match
the total distribution mentioned in M&C 25-0501 from the listed Gas Lease Endowment Funds for FY2025. The transfer from the Gas Lease
Endowment Funds was budgeted for the full amount of $3,694,627.12, however the corresponding appropriation was only $3,006,222.95,
leaving $688,404.17 of transferred but unappropriated funds.
Funding is budgeted in Aviation, PARD, Water/Sewer and General Endowment Gas Lease Funds for the purpose of transferring to Aviation,
PARD, Water/Sewer Gas Lease Capital Project Funds and the General Fund.
The Nature Center Endowment Gas Lease Fund does not currently have any income available for distribution.
This will serve ALL COUNCIL DISTRICTS.
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, funds will be available in the Aviation, PARD, and Water/Sewer Gas Lease Capital Projects
Funds and the General Fund. Prior to any expenditure or expense being incurred, the participating departments have the responsibility of verifying
the availability of funds.
Submitted for Citv Manaaer's Office bv: Reginald Zeno 8517
Oriainatina Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Alex Laufer 2268