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HomeMy WebLinkAboutItem 10 - DFW Revenue Sharing AgreementMEMO TO: MEETING DATE: SUBJECT RECOMMENDATION: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL MAY 03, 2016 APPROVAL OF ORDINANCE APPROPRIATING FUNDS FOR THE PAYMENT OF DFW REVENUE SHARING AGREEMENT PER SB 569 City Council to consider approval of the attached ordinance for the payment of Senate Bill 569 DFW Revenue Sharing Agreement. FUNDING SOURCE: Upon approval of the attached ordinance the funding will be appropriated from account 100-44686-120-1. BACKGROUND: In September of 2001, the Texas Legislature enacted SB 569 which established a revenue sharing plan for the City of Grapevine and DFW Airport. The agreement requires that the City of Grapevine share certain revenues generated within the boundaries of the Dallas/Fort Worth International Airport with constituent agencies, which are the City of Dallas and the City Fort Worth, Texas. The amount agreed to be paid is two-thirds of the airport revenues that are in excess of the base year which was established in Fiscal Year 2000 in the amount of $5,941,780.48. At the end of FY 15 the revenues exceeded the base year by $337,907.95 and came in at $6,279,688.44. Per SB 569 the 2/3 represents $225,271.97 with $143,272.97 distributed to City of Dallas and $81,999 due to City of Fort Worth accordingly. Prior to this request, fiscal year 2007 was the only time the City of Grapevine exceeded the revenues from the base year. GJ 4/28/2016 12:15:34 PM A' WHEREAS, the City Council of the City of Grapevine entered into a DFW Revenue Sharing agreement with the Cities of Dallas and Fort Worth, Texas per Senate Bill 569; and WHEREAS, the agreement indicates that revenues within the Dallas Fort Worth International Airport are to be shared if they exceed amounts in fiscal year 2000 base year of $5,941,780.48. The amount will be split 7/11 to Dallas and 4/11 to Fort Worth, net of accountant's fees; and WHEREAS, revenues in 2015 exceeded the base year by $225,271.97 and this amount was not included in the Operating Budget; and WHEREAS, the funding for the DFW Revenue Sharing Agreement shall be appropriated from General Fund Balance in the amount of $225,271.97; and WHEREAS, the funding for the Sharing Agreement should be paid from the General Fund; and WHEREAS, all constitutional and statutory prerequisites for the approval of this ordinance have been met, including but not limited to the Open Meetings Act; and WHEREAS, the City Council deems the adoption of this ordinance to be in the best interests of the health, safety, and welfare of the public. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That all matters stated in the preamble of this ordinance are true and correct and are hereby incorporated into the body of this ordinance as if copied in their entirety. Section 2. That the City Council hereby authorizes the appropriation of funds currently in the General Fund Balance to the General Fund in an amount of $225,271.97 Section 5. That a copy of the revised Fiscal Year 2015-2016 Operating Budget document shall be kept on file in the office of the City Secretary and on the City of Grapevine website. Section 6. That the terms and provisions of this ordinance shall be deemed to be severable, and that if the validity of any section, subsection, word, sentence or phrase shall be held to be invalid, it shall not affect the remaining part of this ordinance. Section 7. That the fact that the present ordinances and regulations of the City of Grapevine, Texas are inadequate to properly safeguard the health, safety, morals, peace and general welfare of the inhabitants of the City of Grapevine, Texas, creates an emergency for the immediate preservation of the public business, property, health, safety, and general welfare which requires that this ordinance shall take effect immediately from and after its passage and it is accordingly so ordained. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY GRAPEVINE, TEXAS on - 3rd day of • William D. Tate Mayor ATTEST: Tara Brooks City Secretary John F. Boyle, Jr. City Attorney ORD. NO. 2