Page 387 - FortWorthFY23AdoptedBudget

Gas-Related Revenue &
Expense/Expenditure

Policy

intended growth and expansion of the Trust, a provision for dissolution of
the Trust will be incorporated into the initial Trust instrument. Dissolution of
the Trust will first require a determination and recommendation of the
corporate trustee and the Chief Financial Officer/ Director of Finance.

7. To facilitate prudent management and reasonable returns and growth for the
Trust Fund, during the 81st Legislative Session, the Public Funds Investment
Act (Texas Local Government Code Chapter 2256) was amended. As amended
the Act allows the Trust Fund to be managed in a flexible manner consistent
with the Uniform Prudent Management of Institutional Funds Act (Texas
Property Code Chapter 163).

B. Revenue from Current Receipts

1. Ad Valorem Tax Revenue

The ad valorem receipts on mineral valuations will be allocated to the General F und.

2. Water and Sewer Fund

Bonus, royalty and other natural gas- related fee revenue derived from Water
and Sewer assets, including pipeline easements and license agreements, will
generally be allocated in the manner outlined below, provided, however that
no allocation may be made except in compliance with the Water and Sewer System’s
Master Ordinance and applicable Supplemental Ordinances and bond covenants. To
the extent that gas-related revenues subject to this subsection are needed in order to
comply with covenants and duties for the System’s Outstanding Obligations, they
shall be allocated first to such compliance.

Water and Sewer - Lake Worth Property
Funds from Water and Sewer property located in and around Lake Worth
(except the Nature Center and Refuge) shall be designated for qualified
expenditures in the development and execution of the 2007 Lake Worth Capital
Improvement Implementation Plan, until such time as the plan projects are
completed.

Water and Sewer – Other Property
All revenue derived from other Water and Sewer assets will be allocated as
follows:

a. Seventy-five percent (75%) to the Water and Sewer Gas Lease Capital Projects
Fund.

3 | P a g e

Page 387 of 623