The purpose of this Mayor and Council Communication (M&C) is to make appropriation adjustments to properly account for the costs of banking and mineral-lease-administration services and for the costs of trust/asset management services, with each participating fund being allocated its proportionate share of the total cost based on the relative percentage that mineral revenues for that fund for the year bear to the total mineral revenues received during the year.
In April 2018, the City Council approved M&C G-19267, which appropriated funds for these fees in the respective Endowment Gas Lease Funds. Because the banking and administrative services benefit other funds beyond the endowments, additional steps are needed to complete the funding of these expenditures. Those steps include recognizing revenue in the appropriate funds for administrative and banking expenditures. Approval of this M&C is needed to accomplish the necessary actions. The corrective action of this M&C follows the current Financial Management Policy Statements in which funds are appropriated in the individual funds.
For FY2019 the transactions have been budgeted in all the respective funds.
In accordance with the terms of the Agreement and the current Financial Management Policy Statements, the banking fee is proportionately allocated on a monthly basis to the various funds with which mineral leases are associated. For accounting purposes only, this M&C officially appropriates funds associated with fees for Fiscal Year 2018 to the various funds for banking, mineral-lease-administration, and trust/asset-management services provided by Wells Fargo. In accordance with the terms of the Agreement, Wells Fargo has paid itself throughout the year. Thus, approval of this M&C does not further reduce the mineral revenues in Fiscal Year 2018.
This M&C does not request approval of a contract with a business entity.