HomeMy WebLinkAboutOrdinance 22214-05-2016 ORDINANCE NO.22214-05-2016
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE STORMWATER DEBT SERVICE FUND IN THE
AMOUNT OF$20,000,000.00,SUBJECT TO SALE OF BONDS AND RECEIPT OF
PROCEEDS, FOR THE PURPOSE OF REFUNDING EXISTING DRAINAGE
UTILITY DEBT AND PAYING COSTS OF ISSUANCE; PROVIDING FOR A
SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF
PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT
HEREWITH; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2015-2016 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Stormwater Debt Service Fund in the amount of$20,000,000.00, subject to the sale of bonds and receipt of
proceeds,for the purpose of refunding existing drainage utility debt and paying costs of issuance.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or
void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 21873-09-2015 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions
of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
Denis . cEhVFECTIVE:sistant City Attorney iy J.Kayser, City Sc ret ry
ADOPTED A May 17, 2016
Ordinance No.22214-05-2016
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/17/2016 - Ordinance No. 22213-05-2016 & 22214-05-
2016
DATE: Tuesday, May 17, 2016 REFERENCE NO.: G-18735
LOG NAME: 131316 DRAINAGE UTILITY SYSTEM REVENUE REFUNDING BONDS
SUBJECT:
Adopt Ordinance Authorizing Issuance of City of Fort Worth, Texas Drainage Utility System Revenue
Refunding Bonds, Series 2016 in an Aggregate Principal Amount Not to Exceed $19,500,000.00
Establishing Parameters with Respect to Sale of the Bonds, Delegating to Designated City Officials
Authority to Effect Sale of the Bonds, Enacting Other Provisions Relating to the Subject and Declaring an
Immediate Effective Date and Adopt Appropriation Ordinance (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance (1) authorizing the issuance of City of Fort Worth, Texas Drainage Utility
System Revenue Refunding Bonds, Series 2016 in an aggregate principal amount not to exceed
$19,500,000.00; (ii) approving sale of the bonds subject to certain parameters being met; (iii) authorizing
execution of an Agreement for the retirement of the refunded obligations and other instruments related to
the issuance of the bonds; (iv) providing for the establishment of rates and collection of system revenues
sufficient to pay the interest and principal on said bonds; and (v) ordaining other matters related to
issuance of the bonds; and
2. Adopt the attached ordinance increasing estimated receipts and appropriations in the Stormwater Debt
Service Fund in the amount of $20,000,000.00, subject to sale of the bonds and receipt of proceeds, for
the purpose of refunding existing drainage utility debt and paying costs of issuance.
DISCUSSION:
The purpose of this M&C is to approve issuance and sale of refunding bonds that will allow refinancing of
existing Stormwater Utility debt to achieve a net savings.
It is the City of Fort Worth's practice to gain positive debt service savings through refinancing when the
opportunity presents itself. Staff and the City's Co-Financial Advisors, First Southwest, a Division of
Hilltop Securities, and Estrada & Hinojosa, are recommending the 2007 Series Drainage Utility System
Revenue Refunding Bonds be refunded, with a par amount outstanding of$18,500,000.00.
Refunding will offer an estimated present value savings of approximately $2.7 million or 14.65 percent of
the refunded par amount.
The actual savings amount will not be determined until the time bids are received. However, in
accordance with the City's Financial Management Policy Statements, the ordinance provides that the
refunding debt shall not be sold unless the sale will result in net present value savings of at least 3.5
percent of the par amount refunded.
Logname: 131316 DRAINAGE UTILITY SYSTEM REVENUE REFUNDING BONDS Page 1 of 2
Staff is recommending that these bonds be sold through a competitive bid sale with the City Manager or
the Chief Financial Officer being authorized to approve the terms of the sale so long as it comes within the
parameters set forth in the Council-adopted ordinance. Rating agency presentations for Moody's, Fitch,
and Standard & Poor's were conducted the week of April 26, 2016. Ratings are anticipated to be received
in early May. Bids for the sale of the bonds are scheduled to be submitted on May 25, 2016. Subsequent
to accepting the best bid and awarding the sale of the bonds, the City will seek approval for the debt
transactions from the Texas Attorney General with an estimated closing date of June 28, 2016.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon adoption of the attached ordinances, the sale of the 2016
Drainage Utility System Revenue Refunding Bonds will occur as required under the parameters set forth
therein and that funds will be available in the Stormwater Debt Service Fund to record the appropriate and
necessary transactions.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # Amoun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # �mounl
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: Trey Imes (8558)
Logname: 131316 DRAINAGE UTILITY SYSTEM REVENUE REFUNDING BONDS Page 2 of 2