HomeMy WebLinkAboutResolution 4409-02-2015 i
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A Resolution
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NO. 4409-02-2015
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NOTIFYING THE TRUSTEE OF THE FORT WORTH PERMANENT FUND AND
THE CHIEF FINANCIAL OFFICER OF THE CITY OF FORT WORTH THAT THE
FORT WORTH CITY COUNCIL INTENDS TO CONSIDER AND VOTE ON
AMENDMENTS TO THE TRUST AGREEMENT FOR THE FORT WORTH
PERMANENT FUND THAT WOULD ADD A DEFINITION OF "INCOME" AND
WOULD CLARIFY THE PROCESS FOR MAKING DISTRIBUTIONS AND '
DIRECTING STAFF TO TAKE ALL NECESSARY ACTIONS TO ENSURE
COMPLIANCE WITH THE REQUIREMENTS OF THE TRUST j
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WHEREAS, in 2008, the Fort Worth City Council adopted M&C G-16013, which
established a Section 115 Trust Fund, "The Fort Worth Permanent Fund" (the "Fund"), to
enable prudent financial management of gas-related revenues to provide a long-term
source of revenue to benefit both current and future citizens; and
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WHEREAS, in 2013, following a competitive bid process, Wells Fargo, N.A. was
selected to serve as the initial corporate trustee (the "Trustee") for the Fund, and the
"Trust Agreement for the Fort Worth Permanent Fund" (the "Agreement") was executed;
and
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WHEREAS, rather than defining the concept of "income," the Agreement
currently incorporates Texas trust law, which limits the concept to current returns and +`
does not include realized gains; and i
WHEREAS, the Agreement currently provides only general guidelines regarding
annual distributions of Trust revenue; and
WHEREAS, staff has recommended that the City Council consider amending the
Agreement to explicitly define "income" as both current returns and realized gains in
order the allow the City Council to have greater flexibility in managing the Trust and its
revenues to better meet the stated goal of providing benefit to current citizens while
ensuring that the corpus of the Trust and additions thereto remain intact to continue to
meet the stated goal to benefit future citizens; and
WHEREAS, the Trustee has suggested that additional detail regarding the
distribution process would provide greater clarity to the Trustee in carrying out its
obligations, and staff has recommended amendments to memorialize that the distribution
process is to be aligned with the City's annual budget-adoption process in order to aid
the City Council in its on-going efforts to ensure the City takes a comprehensive, global
approach to resource and capital planning; and 1
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Resolution No.4409-02-2015
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WHEREAS, the Trust Agreement sets forth a detailed process for consideration of
amendments to ensure ample opportunity is provided for public review and input, with
such process being initiated by the City Council giving written notice to the Trustee and
to the City's Chief Financial Officer of the proposed amendment; and
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WHEREAS, the City Council wishes to initiate the amendment ;process so that the
recommended amendments to the Trust Agreement may be fully considered by the City
Council, the Trustee, the Chief Financial Officer, and the citizens of the City of Fort i
Worth and may be voted on by the City Council if desired.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
1. That official written notice is hereby given to Wells Fargo, N.A., as Trustee of
the Fort Worth Permanent Fund, and to the City's Chief Financial Officer that
the City Council intends to consider and vote on amendments to the Agreement
for the Fort Worth Permanent Fund, to wit: (i) amending the Trust Agreement j
to define "income" as both current returns and realized gains and (ii) amending
the Trust to clarify the process for making distributions and to ensure that the j
process aligns with the annual consideration and adoption of the City's budget; i
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2. Staff is hereby directed to take all necessary actions to ensure compliance with
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the process for considering and voting on amendments to the Trust Agreement
as described above, including (i) setting an initial meeting among the City
Council, the Trustee, and the City's Chief Financial Officer; (ii) scheduling i
and publishing notice of at least three public hearings to explain the,reasons
for the proposed amendments and to obtain public input concerning the f
proposed amendments; (iii) scheduling a follow-up meeting among the City I
Council, the Trustee, and the City's Chief Financial Officer; and (iv)
scheduling a City Council meeting to vote upon the proposed amendments, all
of which shall be done in accordance with the terms, conditions, and I
requirements of the Trust Agreement for the Fort Worth Permanent Fund.
Adopted this 12th day of February, 2015.
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By -- ------ - -- -- ---------
Mary Kayser, ty; ecretary AnaY4��
ORT WORT
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