HomeMy WebLinkAboutOrdinance 16198Ordinance No ` ~~
AN ORDINANCE INCREASING APPROPRIATIONS IN THE GENERAL FUND IN
THE AMOUNT OF $54 039 10 AND DECREASING THE UNRESERVED
DESIGNATED FUND BALANCE BY THE SAME AMOUNT FOR THE PURPOSE
OF FUNDING PARTICIPATION IN DOCKETS AND RATE CASES AT THE
TEXAS PUBLIC UTILITIES COMMISSION WITH THE TXU ELECTRIC
SERVICES AREA CITIES STEERING COMMITTEE, 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 2004-
2005 in the Budget of the City Manager there shall also be increased appropriations in the General
Fund in the amount of $54,039 10 and decreasing the unreserved, designated fund balance by the
same amount, for the purpose of funding participation in dockets and rate cases at the Texas Public
Utilities Commission with the TXU Electric Services Area Cities Steering Committee.
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. 16061 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conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed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
APP VED AS TO FORM AND LEGALITY
< ~
Assistant City Attorne•
ADOPTED AND EFFECTIVE. ~j~ `9-D`•~ G--/~ S 7 ~
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 11/9/2004 Ordinance No 16198
DATE Tuesday November 09 2004
LOG NAME 03TXU
REFERENCE NO *G-14576
SUBJECT
Adoption of Supplemental Appropriation Ordinance and Authorization for Payment to the Standing
Steering Committee of TXU Electric Service Area Cities to Fund Participation in Dockets and Rate
Cases at the Texas Public Utility Commission
RECOMMENDATION
It is recommended that the City Council
1 Adopt the attached supplemental appropriation ordinance increasing appropriations in the General
Fund by $54 039 10 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 $54 039 10 to fund participation in current and upcoming dockets and rulemakings at the Texas Public
Utilities Commission
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 to the City and increased its annual payments 33% 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 (M8~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
( 10 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
II Current Status
There are a number of issues before the Public Utilitiy Commission of Texas associated with electric utility
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 to the
member cities. The City of Fort Worth s share on this project is $54 039 10 Payment of this assessment is
a legitimate use for the funds in the Electricity Rate Case Reserve Account.
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Currently $500 000 is designated in the unreserved designated fund balance of the General Fund to
provide a secure source of funding for the City's participation of the TXU Electric rate cases Each fiscal
year if the designated reserve account falls below the $500 000 balance Ordinance No 1382 as
amended by the City Council on September 26 2000 (M&C G-13023) 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 Accordingly approval of this Mayor 8 Council Communication will appropriate the
necessary amount to maintain the policy level balance.
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that upon approval of the attached appropriations ordinance funds will be
available in the current operating budget of the General Fund, as appropriated
TO Fund/Account/Centers FROM Fund/AccountlCenters
GG01 539120 0905500 $54.039.10 GG01 539120 0905500 $54.039.10
Submitted for City Manager's Office b~ Richard Zavala (Acting) (8511)
Originating Department Head Bridgette Garrett (8518)
Additional Information Contact: Danny Reed (6145)
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