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HomeMy WebLinkAboutOrdinance 21619-01-2015 Ordinance No. 21619-01-2015 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE INDICATED FUNDS IN THE CUMULATIVE AMOUNT OF $827,712.46, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF FUNDING THE DISTRIBUTION TO GAS LEASE CAPITAL FUNDS; 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 2014-2015 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Aviation Endowment Gas Lease Fund in the amount of$358,809.49; in the Park System Endowment Gas Lease Fund in the amount of $178,329.22; in the Water and Sewer Endowment Gas Lease Fund in the amount of$76,882.21; and in the General Endowment Gas Lease Fund in the amount of$213,691.54, from available funds, for the purpose of funding the distribution to Gas Lease Capital Funds. 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. 21457-09-2014 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 Assistan City Attorney 11 0 . Mary J. ay ADOPTED AND EFFECTIVE: January 27, 2015 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 1/27/2015 - Ordinance Nos. 21618-01-2015 & 21619-01- 2015 DATE: Tuesday, January 27, 2015 REFERENCE NO.: G-18401 LOG NAME: 13GAS WELL TRUST DISTRIBUTION SUBJECT: Authorize Distribution in the Amount of$827,712.46 in Income from the City's Mineral Revenue Trust Fund for Projects Meeting Designated Purposes, Authorize Transfers and Adopt Appropriation Ordinances (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Authorize distribution in the amount of$827,712.46 in income from the City's Mineral Revenue Trust Fund, the Fort Worth Permanent Fund, commensurate with the management of the City's mineral revenues; 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the listed Gas Lease Endowment Funds in the cumulative amount of$827,712.46, allocated as follows: a. Aviation Endowment Gas Lease Fund in the amount of$358,809.49; b. Park System Endowment Gas Lease Fund in the amount of$178,329.22; c. Water and Sewer Endowment Gas Lease Fund in the amount of$76,882.21; d. General Endowment Gas Lease Fund in the amount of$213,691.54; 3. Authorize the transfer in the amount of$827,712.46 from the City's Mineral Revenue Trust Fund, the Fort Worth Permanent Fund, to associated Gas Lease Capital Funds; and 4. Adopt the attached appropriation ordinance increasing estimated receipts in the following Gas Lease Capital Funds in the amount of$827,712.46 commensurate with the management of the City's mineral revenues for projects that meet the designated purposes of the fund: a. Airports Gas Lease Project Fund in the amount of$358,809.49; b. Park System Endowment Gas Lease Fund in the amount of$178,329.22; c. Water and Sewer Gas Lease Capital Projects Fund in the amount of$76,882.21; and d. General Fund in the amount of$213,691.54. Lognarne: 13GAS WELL TRUST DISTRIBUTION Pagel of 3 The purpose of this Mayor and Council Communication (M&C) is to take actions to distribute and appropriate income from the City's mineral revenue trust fund so that the money can be used to fund eligible projects. In 2008, the City Council adopted amendments to the City's Financial Management Policy Statements (FMPS) to establish a Mineral Revenue Trust Fund 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., 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. In accordance with the terms of the written Trust Agreement and the FMPS, the Fund is maintained as a consolidated account and divided into five sub-accounts. Money in the Trust is invested in accordance with the City Council adopted Investment Policy and Strategy for the Fund (M&Cs G-17857 and G-18244). Under the terms of the Trust Agreement, the Trustee works with City's Chief Financial Officer (CFO) to determine the amount of income available for distribution each year. In accordance with the FMPS, a recommendation is made to the City Council for distribution procedures for the different funds of the Trust consistent with the goal to preserve, as well as increase, the principal of the Trust. Expenditures of distributed income must meet criteria in the FMPS, with the dollars generally being available only for funding one-time program initiatives, capital projects that comply with certain listed requirements and arts programming. Wells Fargo has worked with the CFO to identify available income and Staff in the Financial Management Services Department has consulted with other City departments to develop recommendations regarding allocation of the distributable income. The following actions are recommended for available Trust income in each of the designated sub- accounts: 1. The Aviation Endowment Gas Lease Fund -Take a distribution of all available income totaling $358,809.49 for use toward the construction of box hangars at Spinks Airport. 2. The Park System Endowment Gas Lease Fund -Take a distribution of all available income totaling $178,329.22 ($111,346.62 from restricted parks; $66,982.60 from unrestricted parks) for use toward capital needs. 3. The Water and Sewer Endowment Gas Lease Fund -Take a distribution of all available income totaling $76,882.21 for use toward water and sewer infrastructure projects. 4. The General Endowment Gas Lease Fund -Take a distribution of all available income totaling $213,691.54 for the purpose of funding arts programming in accordance with City Council approved amendments to the FMPS in 2013 (M&C G-18067). Note: The Nature Center Endowment Gas Lease Fund does not currently have any income available for distribution. FISCAL INFORMATION / CERTIFICATION: The Financial Management Services Director certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinances, income from the City's Mineral Revenue Trust Fund will be transferred and distributed from the Trust to the respective Capital funds. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers Logname: 13GAS WELL TRUST DISTRIBUTION Page 2 of 3 1)T125 446.200 055125099901 $358,809.49 2) T125 538070 055125099901 $358,809.49 1) T125 538070 055125099901 $358,809.49 2) T122 538070 080192099901 $111,346.62 1) T122 446200 080122099901 $111,346.62 2) T122 538070 080192099901 $66,982.60 1)T122 538070 080122099901 $111,346.62 2) T127 538070 006127099901 $213,691.54 1) T122 446200 080122099901 $66,982.60 3 4) T124 538070 06124099901 $76,882.21 1) T122 538070 080122099901 $66,982.60 1)T124 446200 060124099901 $76,882.21 1) T124 538070 060124099901 $76,882.21 1)T127 446200 060127099901 $213.691.54 1) T127 538070 060127099901 $213,691.54 2 3) P240 476125 551929990100 $358,809.49 2 3) GG01 476127 0906210 $213,691.54 2 3) T124 446200 06124099901 $76,882.21 3) T122 446200 080122099901 $66,982.60 3)T122 446200 080122099901 $111,346.62 CERTIFICATIONS: Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Aaron Bovos (8517) Judy Walton (8334) Additional Information Contact: John Butkus (2438) Logname: 13GAS WELL TRUST DISTRIBUTION Page 3 of 3