HomeMy WebLinkAboutItem 08 - DFW Revenue SharingMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: JULY 3, 2018
SUBJECT: APPROVAL OF ORDINANCE APPROPRIATING FUNDS FOR
REQUIRED PAYMENTS ASSOCIATED WITH THE DFW AIRPORT
REVENUE SHARING AGREEMENT IN ACCORDANCE WITH SENATE
BILL 569
RECOMMENDATION: City Council to consider approval of the attached ordinance and payments
to the City of Dallas and the City of Fort Worth in accordance with Senate
Bill 569 Revenue Sharing Agreement.
FUNDING SOURCE: Upon approval of the attached ordinance, funding will be available in
account 100-44686-120-001.
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 the City of Grapevine to share certain
revenues generated within the boundaries of the Dallas/Fort Worth
International Airport with constituent agencies which include the City of
Dallas and the City of Fort Worth. Hotel occupance tax and the debt
service portion of ad valorum are exempted. The amount agreed upon to
be paid is 2/3 of the airport revenues that are in excess of the base year
amount of $5,941,780 established in Fiscal Year 2000.
Fiscal Year 2017 shared revenues were $6,560,003 exceeding base year
revenue by $618,223 resulting in an amount of $412,149 (2/3 of excess)
due to the other constituents. The excess amount will be distributed to the
City of Dallas ($262,127) and the City of Fort Worth ($150,022).
In addition, adjusted revenue in the amount of $124,642 was received
from Atmos Energy for the periods 2012 through 2016. Adjusted
calculations were performed for the distribution of the excess based on
each year's amount received. As a result, $98,191 will be kept by the City
of Grapevine, $16,823 will be distributed to the City of Dallas and $9,628
will be distributed to the City of Fort Worth.
Staff recommends approval
GJ
ORDINANCE NO. 2018-047
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS; REVISING THE ADOPTED BUDGET
FOR THE FISCAL YEAR ENDING IN 2018; PROVIDING
FOR THE TRANSFER OF THE FUNDS, DECLARING AN
EMERGENCY AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City Council of the City of Grapevine entered into a DFW Revenue
Sharing Agreement with the DFW Airport and 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. The amount will be split 7/11 to Dallas and 4/11 to Fort Worth, net
of accountant's fees; and
WHEREAS, the funding for payments associated with the DFW Revenue Sharing
Agreement shall be appropriated from General Fund Balance in the amount of $438,600;
and this amount was not included in the Operating Budget; 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 hereinabove are found to be true and correct
and are incorporated herein by reference 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 $438,600.
Section 3. That a copy of the revised Fiscal Year 2017-2018 Operating Budget
document shall be kept on file in the office of the City Secretary and on the City of
Grapevine website.
Section 4. 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 5. 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 OF
GRAPEVINE, TEXAS on this the 3rd day of July, 2018.
APPROVED:
William D. Tate
Mayor
ATTEST:
Tara Brooks
City Secretary
APPROVED AS TO FORM:
City Attorney
Ordinance No. 2018-047 2