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HomeMy WebLinkAboutOrdinance 14346~, ORDINANCE NO. / 7.3 y6 AN ORDINANCE AMENDING ORDINANCE NO. 11382 TO REDUCE THE AMOUNT OF FUNDING REQUIRED FOR THE RESERVE ACCOUNT ESTABLISHED TO COVER THE CITY OF FORT WORTH'S EXPENSES IN TXU ELECTRIC COMPANY RATE CASES; PROVIDING THAT THIS ORDINANCE IS CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council has deterrmned that a reserve account should be established for the purpose of providing a secure source of funding for participation by the City of Fort Worth ("City") m ratemakmg and regulatory proceedings involving TXU Electnc Company; and WHEREAS, on August 17, 1993 the City Council adopted Ordinance No 11382 estabhslung a rmnunum balance of $1 million m such reserve account; and WHEREAS, the actual amount needed to fund the City's participation m such ratemakmg and regulatory proceedings since the adoption of Ordinance No 11382 has been less than $50,000; and WHEREAS, based on such data, the City Council believes that a reserve account with a mimmum balance of $500,000 instead of $1 million will be adequate to ensure a secure source of funding for participation by the City m ratemakmg and regulatory proceedings mvolvmg TXU Electric Company; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS THAT: SECTION 1. Section 2 of Ordnance No 11382 is hereby deleted m its entirety and replaced with the following: The City Manager is hereby directed to deposit on October 1st of each fiscal year the lesser of (i) $250,000 or (ii) whatever sum is necessary to return the balance in the Reserve Account to $500,000 The City Manager is also directed to include in the budgets for subsequent fiscal years any funds which are required by this Ordinance to be deposited m the Reserve Account. SECTION 2. This Ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1986) ("Code"), as amended, except where the provisions of this Ordinance are m direct conflict with the provisions of other such ordinances or the Code, m which case the conflicting provisions of such ordinances or the Code are hereby repealed. SECTION 3. If any provision of this Ordinance shall be held to be invalid, illegal or unenforceable by a final order entered by a court of competent ~unsdichon, the validity, legality and enforceability of the remaining provisions of this Ordinance shall not m any way be affected or impaired. SECTION 4. This Ordinance shall be m full force and effect after rts adoption, provnded that, m accordance with Section 3 of Ordinance No 11382, (i) the City Council has held a public heanng on the matters set forth nn this Ordinance and given all interested parties an opportumty to be heard and (ii) notice of such public heanng was published nn the official newspaper of the Cnty at least ten (10) days pnor to the date of such heanng, and rt ns so ordained. APPROVED AS TO FORM AND LEGALITY By• Peter Vaky Assnstant City Attorney Date: ~-//f ~ ADOPTED ~ =~ G " O O EFFECTIVE ~"'~ ~'"OD City of Fort Worth, Texas ~1-~A~ar And Caunc~l Ca~»~rtun~cA~ian DATE REFERENCE NUMBER LOG NAME PAGE 9/26/00 G-13023 13REDUCE 1 of 1 SUBJECT PUBLIC HEARING FOR THE AMENDMENT OF ORDINANCE NO 11382, REDUCING THE RESERVE ACCOUNT TO PAY EXPENSES IN TXU ELECTRIC RATE CASES RECOMMENDATION It is recommended that the City Council adopt the attached ordinance reducing the amount of the reserve required to be maintained to pay the City's expenses associated with the TXU Electric rate cases DISCUSSION In 1993, the new TXU Electric franchise imposed limitations on the City's right to reimbursement in TXU Electric rate cases. To ensure that the City would have adequate funds to participate in future rate cases, Ordinance No 11382 was adopted establishing the Electricity Rate Case Reserve Account and requiring a balance be maintained in the Reserve Account of $1 million In the seven years since this Reserve Account was established, less than $50,000 has been appropriated for expenditures related to rate and regulatory cases Staff believes that a Reserve Account of $500,000 will be adequate to ensure that the City has funds to participate in future cases. The proposed ordinance amendment reduces the required Reserve Account to $500,000 The $500,000 reduction from the Reserve Account will be transferred to the undesignated, unreserved fund balance of the General Fund Notice of the attached ordinance and the date and time of the public hearing on the merits thereof were published on September 15, 2000 in the City's official newspaper as required by Ordinance No 11382. FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that upon adoption of this ordinance, the Electricity Rate Case Reserve Account will have a balance of $500,000, and the undesignated, unreserved fund balance of the General Fund will be increased by $500,000 to $27,117 041 CB k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) D'vED Charles Boswell 8511 ~~ CITY C . Originating Department Head. ~~~~ sEP Jim Keyes 8517 (from) ~s 20~ ~ Additi l I f ti t t C ^ru r"~"` ona n orma on on ac : ~ ,~ City Secretary of Ltis wty of Fart e~ Jim Keyes 8517 orth, a<?x~, Adont~c~ t~rd,'nanbe t~~,~~ =.