HomeMy WebLinkAboutOrdinance 21898-09-2015 ORDINANCE NO. 21898-09-2015
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
AIRPORTS GAS LEASE PROJECT FUND, AVIATION ENDOWMENT GAS LEASE FUND,
CAPITAL PROJECTS RESERVE FUND, GENERAL ENDOWMENT GAS LEASE FUND, PARK GAS
LEASE PROJECT FUND, PARY SYSTEM ENDOWMENT FUND, GOLF GAS LEASE CAPITAL
PROJECT FUND, LAKE WORK GAS LEASE CAPITAL IMPROVEMENT FUND, WATER AND
SEWER GAS LEASE CAPITAL PROJECTS FUND AND THE WATER AND SEWER ENDOWMENT
GAS LEASE FUND IN AN AMOUNT UP TO $798,000.00, FROM AVAILABLE FUNDS, SUBJECT
TO APPROVAL OF UP TO $5,150.00 IN TOTAL EXPENSES BY THE BOARDS OF THE HOUSING
FINANCE CORPORATION, LOCAL DEVELOPMENT CORPORATION, AND CENTRAL CITY
LOCAL GOVERNMENT CORPORATION, FOR THE PURPOSE OF REIMBURSING EXPENSES
ASSOCIATED WITH THE MANAGEMENT OF THE CITY-OWNED MINERAL INTEREST
PROPERTIES IN FISCAL YEAR 2015; 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 Airports Gas Lease Project Fund;
Aviation Endowment Gas Lease Fund; Capital Projects Reserve Fund; General Endowment Gas Lease Fund; Park Gas
Lease Project Fund; Park System Endowment Gas Lease Fund; Golf Gas Lease Capital Project Fund; Lake Worth Gas Lease
Capital Improvement Fund; Water and Sewer Gas Lease Capital Projects Fund; and the Water and Sewer Endowment Gas
Lease Fund in the amount of$798,000.00 from available funds, subject to approval of up to $5,150.00 in total expenses by
the boards of the Housing Finance Corporation, Local Development Corporation, and Central City Local Government
Corporation, for the purpose of reimbursing expenses associated with the management of the City-owned mineral interest
properties in Fiscal Year 2015.
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:
Christa Jyn alds, S�Asis�tant ty Att ey ary J. se ;Ci y S er tary
ADOPTED AND EFFECTIVE: September 29, 2015
Ordinance No.21898-09-2015
Page 1 of 1
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/29/2015 - Ordinance No. 21898-09-2015
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DATE: Tuesday, September 29, 2015 REFERENCE NO.: **G-18562
LOG NAME: 13GAS OPERATING EXPENSES FY2015
SUBJECT:
Adopt Appropriation Ordinance and Authorize Transfer of Gas-Related Revenues in an Amount Up to
$798,000.010 from Various Funds to the General Fund for Reimbursement of Expenses Associated with the
Management of City-Owned Mineral Interest Properties in Fiscal Year 2015 and Adopt Appropriation
Ordinance (ALL COUNCIL DISTRICTS)
............ ........ .....
RECOMMENDATION:
It is recommended that the City Council,
1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations for Fiscal
Year 2015 in an amount up to $798,000.00 from the Airports as Lease Project Fund, Aviation
Endowment Gas Lease Fund, Capital! Projects Reserve Fund, General Endowment Gas Lease Fund, Park
Gas Lease Project Fund, Park System Endowment as Lease Fund, Golf as Lease Capital Project
Fund, Lake Worth as Lease Capital Improvement Fund, Water and Sewer as Lease Capital Projects
Fund, and the Water and Sewer Endowment as Lease Fund; and
2. Authorize thetransfer in an amount up to $7984000.00 from gas-related revenue tote General Fund
plus up to $5,150.00 of expenses from the boards of the Housing Finance Corporation, Local
Development Corporation, and Central Cfty Local Government Corporation, subject to approval from each
of these entities, to cover administrative costs of management for City-owned mineral interest properties.
........... ......... ..........................
DISCUSSION:
On May 5, 2015, the City Council adopted Rnancial Management Policy Statements (FMPS) for the City
with M&C G-18466. These policies include a provision allowing for the periodic transfer of gas lease
revenues to the General Fund to offset budgeted administrative costs in the Property Management,
Planning and Development, La Financial Management Services Departments associated with the
management of the City-owned mineral interest properties. Total expenditures in an amount up to
$798,000.00 include the budgeted categories noted below,
Employee Salaries and Benefits 551,549.00
(includes six.......approved positions, plus administration and IT support)
..... ..... "" ..... ........ .........
Operation al Expenses $ 5 6,4 24 00
Contractual Services 27.
....................... .........
Total Expe nd itu r es $798000.00
.. .......... ................
Logname: 13GAS OPERATING E.KPENSE.S .FY2015 Page I of 2
In Fiscal Year 2015, Staff continues to manage the deposit and allocation of an estimated
$20,136,024.00 in bonus and royalties. This represents a decrease of 8.9 percent compared to Fiscal
Year 2014 due to the decline in well production, decline in natural as price and some major wells were
shut down due to May flooding. The overall costs of managing the City's mineral assets for Fiscal Year
2015 increased by an estimated 18 percent compared to Fiscal Year 2014, mainly for the addition of one
authorized position to the as Lease Section.
In accordance with the FMPS, the allocation of City-owned mineral interest properties management costs
among gas revenue funds should be proportional to the revenue collected In all funds, including the
permanent funds, fort reporting period. Operating expenditures in amount up to $798,000.00 will be
allocated proportionately based on revenues received by each fund, Gas lease revenues are dependent
on several factors including natural as market price and the amount of production of natural gas by
weII. Additional factors include gas company drilling schedules, weather, and access to pipelines to take
the natural gas to market. Based on these factors, the allocation of revenue per the City's Financial
Management Policy Statements among the various capital and endowment funds varies by fiscal
year. Those funds include: the Airports as Lease Project Fund; Aviation Endowment Gas Lease Fund;
Capital Projects Reserve Fund; General Endowment Gas Lease Fund; Park Gas Lease Project Fund,
Park System Endowment as Lease Fund; of Gas Lease Capital Project Fund; Lake Worth Gas Lease
Capital Improvement Fund; Water and Sewer as Lease Capital Projects Fund-, and the Water and Sewer
Endowment Gas Lease Fund; and the Housing Finance Corporation, Local Development Corporation, and
Central it Local Government Corporation. The allocation of costs to the Housing Finance Corporation,
Local Development Corporation, and Central City Local Government Corporation will be transferred t o t he
General Fund upon approval of each board for its respective share during their monthly board meetings.
These appropriations will be accounted for in Fiscal Year 2015 since that is the period in is the
expenditures were incurred and the final actual expenditures will be determined by the Gas Lease Section
oft Property Management Department and provided to the Financial Management Services Department
(FMS) on or around October 15, 2015. FIVIS will prepare and record the associated accounting entries for
the distribution of expenses.
In Fiscal Year 2016, the allocation of the City-owned mineral interest property management costs among
gas revenue funds as defined in the FMPS will be reviewed and revised,
..............
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations
and adoption of the attached appropriation ordinance, funds will be available in the various capital and
endowment funds, as appropriated,
........... ....................
FUND CENTERS:
TO Fund/Account/Centers FROM F u n d/Accou nt/C enters,
........................................
CERTIFICATIONS:
Submitted for City-Marra gees—Offjgk—bY-' Aaron Bovos (8517)
Originatin Department Head: Aaron Bovos (8517)
Additional Information Contact: Loraine Coleman (8542)
]Logairanw: 13GAS OPERAUNG EXPENSES .FY2015 Pa. e 2 oft