Page 249 - Fort Worth City Budget 2019

Gas Endowment Funds

Gas Endowment Fund Statement

FUND PURPOSE AND GOALS

The Endowment Gas Lease funds were established for the purpose of housing specific gas well revenues intended
to remain intact and allow for the investment of the funds in accordance with the Financial Management Policies.
The revenue generated from the investment of the funds would be a long-term source of income, to be spent for
specific purposes. The trustee, in close cooperation with the Chief Financial Office/Director of Finance,
recommends to the City Council distribution procedures for the different funds of the Trust consistent with the
goal to preserve, as well as increase, the trust principal. The amount of income available to be distributed each
year from a particular fund of the Trust is determined by the trustee and the Chief Financial Officer/Director of
Finance consistent with the Trust agreement approved by the Mayor and City Council.

Expenditures/Expenses of revenues derived from lease bonuses and royalties, other gas-related revenue, and
distributions from the Trust/Endowment Funds shall be appropriated for one time program initiatives and capital
projects which meet one or more of the program and project criteria listed below:

• Capital projects with a minimum 10-year useful life.
• To provide matching grant funds to leverage funds for capital projects.
• Technology with a minimum 5-year useful life.
• Acquisition of equipment and fleet assets including contributions to a revolving replacement fund.
• To fund one-time community-wide economic and neighborhood development initiatives and projects.
• To fund labor and materials associated with production, distribution and establishment activities for trees
on public property (including school and county property).
• To periodically transfer funds to the General Fund to offset budgeted administrative costs associated with
administering this policy and managing the city’s gas leases and pipeline agreements, with the allocation
of the cost being proportional among all gas revenue funds according to each fund’s relative percentage
of the total revenue collected in all funds (including the Trust/Endowment funds and city affiliated
corporation funds) during that reporting period.
• To periodically transfer Park funds from gas lease and pipeline revenues to the General Fund to offset
program costs associated with leases, conversions, and pipelines.
• To replenish the Unassigned Fund Balance (for the General Fund), Assigned Fund Balance (all other
Governmental Funds except the General Fund), or Net Position (for Enterprise Funds), if necessary, in any
designated city fund, to meet the minimum reserve requirements established for that fund.
• To make payments in support of arts organizations provided, however, such payments may only be made
using distributions from the General Endowment Gas Lease Fund and not from bonus, royalties, ad
valorem tax revenues, or any other gas-related revenue.

Aviation Endowment Fund

This fund includes bonus, royalty and other natural gas related fee revenue derived from airport property,
including pipeline easements and license agreements, which are recorded in the Municipal Airports fund and
allocated in the following manner:
• Fifty percent to the Airports Gas Lease Project fund for Aviation Capital Improvement Projects.
• Fifty Percent to the Aviation Endowment Gas Lease Fund.

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