HomeMy WebLinkAboutOrdinance 11382
ORDINANCE NO . ~~~Z7 ~.
AN ORDINANCE ESTABLISHING A RESERVE ACCOUNT TO PAY THE
CITY OF FORT WORTH'S EXPENSES IN TEXAS UTILITIES ELECTRIC
COMPANY RATE CASES; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council has determined 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 in
ratemaking and regulatory proceedings involving Texas Utilities
Electric Company;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
SECTION 1.
The City Manager is hereby directed to establish the
Electricity Rate Case Reserve Account (Fund No. GGO1, Account No.
240067 0000000), which is to be used exclusively to pay expenses
incurred by the City of Fort Worth in ratemaking and regulatory
proceedings involving Texas Utilities Electric Company and for no
other purpose.
SECTION 2.
The City Manager is hereby directed to deposit the following
sums in the Electricity Rate Case Reserve Account at the following
times:
1. $250,000, on October 1, 1993 and $250,000 on
October 1 of each fiscal year thereafter until the
balance in the Reserve Account reaches $1 million.
2. On October 1 of each fiscal year after the balance
in the Reserve Accaunt reaches $1 million
lesser of $250,000 or whatever sum is necess ~` R~~~R~
return the balance in the Reserve Account o~
million. CITY SECR'~TAAY
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The City Manager is also directed to include any funds which
are required to be deposited in the Reserve Account in the budget
for the 1993-1994 fiscal year and subsequent fiscal years.
SECTION 3.
Before this Ordinance may be amended or repealed, the City
Council shall hold a public hearing on the matter at which all
interested parties shall be given an opportunity to be heard.
Before the tenth day before the date of the hearing, notice of the
time and place of the hearing must be published in the City's
official newspaper.
SECTION 4.
This ordinance shall remain in effect during the 15 year term
of the Texas Utilities Electric Company franchise and may then
either be extended or repealed by further action of the City
Council.
SECTTON 5.
This Ordinance shall take effect immediately after its passage
and it is so ordained.
ADOPTED by the C//i~~ty Council of the City of Fort Worth, Texas,
this ~_~~ day of (i{.~(~~. 1993 .
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Off1CfAE RECORD
ClT1( SECRETARY
fT. VIfORTR, TEX.
APPROVED AS TO FORM AND LEGALITY:
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City Attorney
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ADOPTED : ~- / ~ -
EFFECTIVE:
OFFICIAL RECORD
CITY 3ECRTTARY
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City of Fort Worth, Texas
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Mayor and Council Communication
DATE REFERENCE NUMBER LOl3 NAME PAGE
08/17/93 G-10292 72TURATE 1 of 1
SUBJECT ADOPTION OF ORDINANCE ESTABLISHING RESERVE ACCOUNT TO PAY EXPENSES
IN TU ELECTRIC COMPANY RATE CASES
RECOMMENDATION.
It is recommended that the City Council adopt the attached ordinance establishing a reserve
account to pay the City's expenses in Texas Utilities Electric Company rate cases
DISCUSSION
The new TU Electric Company franchise imposes certain limitations on the City's right to
reimbursement in TU Electric Company rate cases Citizens are concerned that the City will not
have funds available to participate in such cases in the future
The attached ordinance will establish the Electricity Rate Case Reserve Account to provide a
secure source of funding for City participation in TU Electric Company rate cases This account
can only be used to pay the City's expenses in such cases and for no other purpose
The attached ordinance further provides that 5250,000 will be deposited in the Reserve Account
on October 1, 1993, and that 5250,000 will be deposited in the Reserve Account each fiscal
year thereafter until the account reaches a 51 million balanceEach fiscal year after the Reserve
Account reaches the 51 million balance, a deposit shall be made equal to the lesser of 5250,000
or whatever amount is necessary to return the balance of the account to 51 million
The ordinance will remain in effect during the 15 year term of the TU Electric Company franchise
and may then be either extended or repealed by further action of the City Council
FISCAL INFORMATION/CERTIFICATION.
The Director of Fiscal Services certifies that funds for annual deposits t I~er nt
will be included in the annual budget for FY 1993-1994 and subsequen ca years
CITY SECI~~TA~Y
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FT. WORTI{, TAX.
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to) A ~
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Charles Boswell 8500 i'1~!
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Originating Department Head: E Y ~,,+ („
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AUG ~'~ 1993
Wade Adkins 7623 (from)
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For Additional Information ~
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Contact: y
ecrotary of the
Citp of F®rt Worth
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Wade Adkins 7(23 ,
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