HomeMy Public PortalAboutOrdinance No. 1190-10 12-14-2010 1190-10
CITY OF RICHLAND HILLS ORDINANCE NO. _
AN ORDINANCE OF THE CITY OF RICHLAND HILLS, TEXAS
AMENDING THE EXISTING ORDINANCE DEDICATING PROCEEDS
FROM THE CITY'S GAS LEASE FOR THE PURPOSE OF STREET,
DRAINAGE, AND SEWER IMPROVEMENTS TO ALSO PERMIT USE AND
TRANSFER OF SUCH FUNDS TO THE WATER AND SEWER FUND TO
REDUCE THE AMOUNT OF INCREASE IN WATER AND SEWER RATES
THAT WOULD OTHERWISE RESULT; PROVIDING THAT THIS
ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES;
PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR
PUBLICATION AS REQUIRED BY LAW; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Richland Hills is a home rule city acting under its charter adopted by
the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local
Government Code; and
WHEREAS, the City has received bonus payments and other payments from a gas lease
agreement leasing certain properties owned by the City for gas production; and
WHEREAS, the City Council had previously determined that streets and drainage and sewer
facilities are essential services which the citizens of the City expect the City to provide and maintain,
and that the City's streets and drainage and sewer facilities are in need of substantial improvements, and
that the funding available to make such improvements is inadequate, and is expected to continue to be
inadequate in the future; and
WHEREAS, the City Council had therefore designated the proceeds from said gas lease,
including the bonus payment and any royalty payments to be used for the purpose of street, water, sewer
and drainage improvements; and
WHEREAS, the City Council has previously on occasion recognized and authorized other uses
for such proceeds; and
WHEREAS, the City Council has now determined that, although the goals and policies of the
previous ordinance remain valid, the City also currently needs to use some of the proceeds from the
City's gas leases to supplement the City's Water and Sewer Fund, and thereby reduce the increase in
water and sewer rates which would otherwise result due to the unexpected increases in water and sewer
charges facing the City; and
WHEREAS, the City Council therefore now wishes to designate such use as a permitted
additional use for the proceeds from said gas lease, including bonus payments and royalty payments;
in addition to street, water, sewer and drainage improvements;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF RICHLAND HILLS, TEXAS:
SECTION 1.
USE OF GAS REVENUES
Bonus payments, any royalty payments, and other income paid to the City paid under the gas
and mineral leases entered into by the City shall be dedicated for the following purposes: (1) street,
water, sanitary sewer, drainage and public building improvements, repairs and modifications; and (2)
transfers to the City's Water and Sewer Fund in amounts approved and authorized by the City Council,
in order to reduce the increase in water and sewer rates which would otherwise result due to the
unexpected increases in water and sewer charges facing the City, such transfers not to exceed the total
sum of Five Hundred Thousand Dollars and no cents ($500,000.00).
SECTION 2.
PROVISIONS CUMULATIVE
This ordinance shall be cumulative of all provisions of ordinances and of the Code of
Ordinances of the City of Richland Hills, Texas, as amended, except where the provisions of this
ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event
the conflicting provisions of such ordinances and such Code are hereby repealed.
SECTION 3.
PROVISIONS SEVERABLE
It is hereby declared to be the intention of the City Council that the phrases, clauses, sentences,
paragraphs, and sections of this ordinance are severable, and if any phrase, clause sentence, paragraph
or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any
court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases,
clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted
by the City Council without the incorporation in this ordinance of any such unconstitutional phrase,
clause, sentence, paragraph or section.
SECTION 4.
PUBLICATION
The City Secretary of the City of Richland Hills is hereby directed to publish this ordinance to
the extent required by law.
ORDINANCE AUTHORIZING GAS DRILLING FUND TRANSER TO WATER AND SEWER RATE STAB. FUND Page 2
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SECTION 5.
EFFECTIVE DATE
This ordinance shall be in full force and effect from and after its passage and publication as
required by law, and it is so ordained.
PASSED AND APPROVED ON THIS _ 14th DAY OF December 2010.
HONORABLE DAVID . RAGAN, MAYOR
ATTEST:
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LINDA CANTU TRMC, CITY SECRETARY ~1
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EFFECTIVE: December 14, 2010
APPROVED A TO OR ND LEGALITY:
TIM G. SRALLA, CITY ATTO EY
ORDINANCE AUTHORIZING GAS DRILLING FUND TRANSER TO WATER AND SEWER RATE STAB. FUND Page 3
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