HomeMy WebLinkAboutOrdinance 22216-05-2016 ORDINANCE NO. 22216-05-2016
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GENERAL DEBT SERVICE FUND IN THE
AMOUNT OF $93,000,000, SUBJECT TO SALE OF BONDS AND RECEIPT OF
PROCEEDS, FOR THE PURPOSE OF REFUNDING EXISTING 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
General Debt Service Fund in the amount of $93,000,000, subject to the sale of bonds and receipt of
proceeds,for the purpose of refunding existing 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of said prior ordinances and appropriations are hereby expressly repealed.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 C. cEho ,Assistant City Attorney M ry J.Kayser,City S cr tary
ADOPTED AND EFFECTIVE: May 17,2016
Ordinance No.22216-05-2016
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/1712016 - Ordinance No. 22215-05-2016 & 22216-05-
2016
DATE: Tuesday, May 17, 2016 REFERENCE NO.: G-18736
LOG NAME: 131316 GO REFUNDING AND IMP BONDS
SUBJECT:
Adopt Ordinance Authorizing Issuance of City of Fort Worth, Texas General Purpose Refunding and
Improvement Bonds, Series 2016, in an Aggregate Principal Amount Not to Exceed $200,000,000.00
Establishing Parameters with Respect to the 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 (i) authorizing the issuance of City of Fort Worth, Texas General Purpose
Refunding and Improvement Bonds, Series 2016 in an aggregate principal amount not to exceed
$200,000,000.00; (ii) approving the sale of the bonds subject to certain parameters being met; (iii)
approving execution of an Agreement for the retirement of the refunded obligations, if any, and other
instruments related to the issuance of the bonds; (iv) providing for the levy, assessment and collection of a
tax or the collection of revenues sufficient to pay the principal and interest 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 General Debt
Service Fund in the amount of $93,000,000.00, subject to sale of the bonds and receipt of proceeds, for
the purpose of refunding existing debt and paying costs of issuance.
DISCUSSION:
The purpose of this M&C is to approve issuance and sale of refunding and improvement bonds that will
allow refinancing of existing debt to achieve a net savings and will provide additional funding for projects in
the 2014 Bond Program.
It is the City of Fort Worth's practice to gain positive debt service savings through refinancing when the
opportunity presents itself. Staff and its Co-Financial Advisors, First Southwest, a Division of Hilltop
Securities, and Estrada Hinojosa, are recommending the following outstanding obligations be refunded:
1. Combination Tax and Parking Revenue CO, Series 2007 with $16,620,000.00 of par outstanding;
2. Combination Tax and WRMC Ctr. Parking Revenue CO, Series 2009 with $21,480,000.00 of par
outstanding;
3. General Purpose Bonds, Series 2009 with $42,580,000.00 of par outstanding.
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Total $80,680,000.00
These refundings will offer an estimated present value savings of approximately $9.6 million or 11.94
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
advance 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.
The proposed debt transactions also include the issuance of $103,000,000.00 in new funds for capital
projects related to the 2014 Bond Program, outlined in the City's Capital Improvement Program. This
portion of the bonds will be repaid over 20 years.
The City is transitioning to a practice of issuing debt in arrears instead of in advance. As such, the new
money proposed within the transaction was previously appropriated in connection with approval of
individual projects and adoption of capital appropriations ordinances. In those M&Cs and ordinances it
was noted that initial funding was coming from then-available pooled cash or other resources and that the
interim funding source would be reimbursed following issuance and sale of the bonds in accordance with
the statement expressing official Intent to Reimburse adopted as part of Ordinance No. 21241-05-2014,
which canvassed the results of the bond election.
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 of 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
General Purpose Refunding and Improvement Bonds will occur as required under the parameters set forth
therein and that funds will be available in the General Debt Service Fund to record the appropriate and
necessary transactions.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # mount
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID 1 Year 1__Iqhartfield_2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: Trey Imes (8558)
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