HomeMy WebLinkAboutOrdinance 17499-04-2007Ordinance No 17499-04-2007
AN ORDINANCE INCREASING APPROPRIATIONS IN THE GENERAL FUND IN
THE AMOUNT OF $60 333 70 AND DECREASING THE UNRESERVED
DESIGNATED FUND BALANCE BY THE SAME AMOUNT FOR THE PURPOSE
OF FUNDING PARTICIPATION IN CURRENT AND UPCOMING DOCKETS
RULEMAKINGS AND OTHER PROCEEDINGS RELATED TO ELECTRIC
UTILITY REGULATION PROVIDING FOR A SEVERABILITY CLAUSE, 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 2006-
2007 in the Budget of the City Manager there shall also be increased appropriations in the General
Fund in the amount of $60 333 70 and decreasing the unreserved, designated fund balance by the
same amount, for the purpose funding participation in current and upcoming dockets, rulemakings
and other proceedings related to electric utility regulation.
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 17142 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conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 Attorne
ADOPTED AND EFFECTIVE. April 17. 2007
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 4/17/2007 Ordinance No 17499-04-2007
DATE Tuesday April 17 2007
LOG NAME 03TXUSC REFERENCE NO *G-15678
SUBJECT
Authorize Payment to the Standing Steering Committee of TXU Electric Service Area Cities to Fund
Participation in Dockets Rate Cases and Other Proceedings Related to Electric Utility Regulation
and Adopt Appropriation Ordinance
RECOMMENDATION
It is recommended that the City Council
1 Adopt the attached appropriation ordinance increasing appropriations in the General Fund by $60 333 70
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
$60 333 70 to fund participation in current and upcoming dockets, rulemakings and other proceedings
related to electric utility regulation
DISCUSSION
I Background
Pursuant to TXU Electric Company's Franchise to operate in the City granted in July 1993 TXU made a
payment in advance of $3 6 million and increased its annual payments 33 percent. 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 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 to enable the cities to respond in a timely manner to
filings before the Public Utility Commission of Texas. The initial assessment on the member cities was ten
cents per capita Future assessments would depend on the number and extent of the rulemaking rate
cases and related dockets in which the cities intervened
Current Status
There are a number of issues before the Public Utility Commission of Texas, the Electric Reliability Council
of Texas, the Texas State Legislature and the courts associated with electric utility regulation and
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 $60 333 70 Payment of this assessment is a
legitimate use for the funds in the Electricity Rate Case Reserve Account.
Currently $500 000 is designated in the unreserved designated fund balance of the General Fund to
Logname: 03TXUSC Page 1 of 2
provide a secure source of funding for the City's participation of the TXU rate cases. Each fiscal year if the
designated reserve account falls below the $500 000 balance Ordinance No 11382, as amended by
Ordinance No 14346 (M&C G-13023 approved by the City Council on September 26 2000) requires a
deposit be made equal to the lesser of $150 000 or whatever amount is necessary to return the balance of
the designated reserve account to $500 000
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that upon approval of the above recommendations and adoption of the
attached supplemental appropriations ordinance funds will be available in the current operating budget, as
appropriated of the General Fund Upon approval the unaudited unreserved undesignated General Fund
fund balance will be $52,239 266 The amount available above the minimum reserve fund balance of
$46 485 951 required by the City's Financial Management Policy Statements (i a 10 percent of the current
year adopted budget expenditures less the annual transfer from the General Fund to the Debt Service
Fund) will be $5 393 315
TO Fund/Account/Centers FROM Fund/Account/Centers
GG01 539120 0902501 $60,333.70
GG01 539120 0902501 $60,333.70
Submitted for City Manager's Office ~ Karen Montgomery (6222)
Originating Department Head Bridgette Garrett (8518)
Additional Information Contact: Danny Reed (6145)
Logname 03T'XUSC Page 2 of 2