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HomeMy WebLinkAboutOrdinance 19158-05-2010ORDINANCE NO 19158-OS-2010 DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION SERIES 2010• AND ORDAINING OTHER MATTERS RELATING TO THE SUBJECT WHEREAS the City of Fort Worth expects to pay expenditures in connection with the design, planning, acquisition and construction of the protects described m Exhibit A to this Ordinance pnor to the issuance of the Certificates of Obligation hereinafter described, and WHEREAS, the City Council hereby finds, considers and declares that the reimbursement of the payment by the City of such expenditures will be appropriate and consistent with the lawful obJectives of the City and, as such, chooses to declare its intention, in accordance with the provisions of Section 1 150-2 of the U S Treasury Regulations, to reimburse itself for such payments at such time as it issues the hereinafter described Certificates of Obligation, and WHEREAS, rt is hereby officially found and determined that the meeting at which this Ordinance was considered was open to the public, and public notice of the time, place and purpose of said meeting was gYVen, all as required by Chapter 551 Texas Government Code. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS Section 1 That attached hereto and marked 'Exhibit A is a form of notice, the form and substance of which are hereby passed and approved. Section 2 That the City Manager shall cause said notice to be published, m substantially the form attached hereto in a newspaper of general circulation in the City of Fort Worth, Texas, for two consecutive weeks, the date of the first publication to be before the thirtieth (30th) day before the day tentatively proposed for authonzmg the issuance of the Certificates of Obligation as shown m said notice. Section 3 That the facilities and improvements to be financed with proceeds from the proposed Certificates of Obligation are to be used for the purposes described m the attached Notice of Intention. Section 4 That all costs to be reimbursed pursuant to this Ordinance will be capital expenditures, the proposed Certificates of Obligation shall be issued within 18 months of the later of (i) the date the expenditures are paid or (ii) the date on which the property with respect to which such expenditures were made, is placed in service; and the foregoing notwithstanding, the Certificates of Obligation will not be issued pursuant to this Ordinance on a date that is more than three years after the date any expenditure which is to be reimbursed is paid. 5 That this Ordinance shall be effective immediately from and after rts passage m accordance with the provisions of Section 2 of Chapter 25 of the Charter of the City and it is accordingly so ordained. PASSED AND APPROVED this the 18th day of May 2010 ATTEST ~~ City Secretary y of Fort Worth, Texas APPROVED AS TO FORM ~, " ,' City Attorney Crty o Fort Worth, Texas (SEAL) .~ of THE STATE OF TEXAS COUNTIES OF TARRANT AND DENTON CITY OF FORT WORTH I, Marty Hendnx, City Secretary of the City of Fort Worth, in the State of Texas, do hereby certify that I have compared the attached and foregoing excerpt from the minutes of the regular open, public meeting of the City Council of the City of Fort Worth, Texas held on May 18 2010 and of the ordinance authonzmg the publication of notice of intention to issue Certificates of Obligation, which was duly passed at said meeting, and that said copy is a true and correct copy of said excerpt and the whole of said ordinance. Said meeting was open to the public, and public notice of the time, place, and purpose of said meeting was given, all as required by Chapter 551 Texas Government Code, as amended. In testimony whereof, I have set my hand and have hereunto affixed the seal of said Crty of Fort Worth, this 18th day of May 2010 ,~~.,>~ (SEAL)` „ ~ .... .. _ .: ~ .. ~~ ~- ^~. w ~~ jr* f~, ~~i `f~ ~~ i City Secretary f the ~ Crty of Fort Worth, Texas ~~~. ~~ ~ ~~~ x'44 ~~. ~ ~. '~~±'"• ~~_ -~...r, ~ 'r~r ~ ~. ~R ~. r' n .... f.. ^~s 1 P~ ~~ t~. r~ x '~., ° ~,~'* w ~~1{~' ORDINANCE NO 19158-OS-2010 EXHIBIT A NOTICE OF INTENTION TO ISSUE -~- COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION NOTICE IS HEREBY GIVEN that rt is the intention of the Crty Council of the City of Fort Worth, Texas, to issue one or more series of the interest bearing certificates of obligation of the City to be entitled 'Crty of Fort Worth, Texas Combination Tax and Revenue Certificates of Obligation for the purpose of paying contractual obligations to be incurred by the City to-wit, the development, design, construction and equipping of amulti-purpose facility located in the Will Rogers Memorial Center of the Crty of Fort Worth as an addition to the Will Rogers Memonal Center equestrian and parking system, including the modification, renovation and improvement of a parking garage and related infrastructure and utilities, the modification, renovation and improvement of hvestocklequestrian/events facilities, the construction of one or more building tunnels and connector canopies, the purchase and installation of security systems, landscaping, communications systems, and lighting; the purchase of furnishings, fixtures, equipment and systems related thereto at the Will Rogers Memonal Center public art enhancements, the funding of caprtahzed interest during construction and for up to one year after completion of construction, and the payment of fiscal, engineering and legal fees incurred in connection therewith. The Crty Council tentatively proposes to authorize the issuance of said series (one or more) of Certificates of Obligation at its regular meeting place m the City Hall at a meeting to commence at 10 o clock, a.m., on the 22nd day of June, 2010 The maximum amount of Certificates of Obligation indebtedness that maybe authorized to be sold on said date for such purposes described above is $35,000 000 The City Council presently proposes to provide for payment of said senes (one or more) of Certificates of Obligation from the levy of ad valorem taxes and from a pledge of revenues derived from an agreement entered into by the City under authority of Section 22 0781 Texas Transportation Code, with respect to certain revenues generated at D/FW International Airport. CITY OF .FORT WORTH, TEXAS /s/ Mike Moncrief Mayor City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/18/2010; -Ord, No. 19158-05-2010 DATE Tuesday May 18 2010 REFERENCE NO G-16929 LOG NAME 1310 WR CO NOI SUBJECT Adopt an Ordinance Directing Publication of Notice of Intention to Issue Combination Tax and Revenue Certificates of Obligation Series 2010 in an Amount Not to Exceed $35 000 000 00 and Ordaining Other Matters Relating to the Subject RECOMMENDATION It is recommended that the City Council 1 Adopt the attached ordinance directing the publication of notice of intention to issue Combination Tax and Revenue Certificates of Obligation Series 2010 in an amount not to exceed $35 000 000 00• 2 Approve the form of notice marked 'Exhibit A attached to the ordinance 3 Authorize the City Manager to cause said notice to be published in substantially the form attached hereto in a newspaper of general circulation in the City of Fort Worth Texas, for two consecutive weeks the date of the first publication to be prior to the thirtieth day before the day tentatively proposed for authorizing the issuance of the Certificates of Obligation as shown in said notice and 4 Authorize the proceeds to be used for the development, design construction .and equipping of a multi- purpose facility located in the Will Rogers Memorial Center of the City of Fort Worth as an addition to the Will Rogers Memorial Center equestrian and parking system including the modification renovation and improvement of a parking garage and related infrastructure and utilities the modification renovation and improvement of livestock/equestrian/events facilities the construction of one or more building tunnels and connector canopies, the purchase and installation of security systems landscaping communications systems and lighting the purchase of furnishings, fixtures equipment and systems related thereto at the Will Rogers Memorial Center public art enhancements the funding of capitalized interest during construction and for up to one year after completion of construction and the payment of fiscal engineering and legal fees incurred in connection therewith DISCUSSION Under the laws of the State of Texas the City Council has the authority to issue Certificates of Obligation (C O.s) a form of debt, without prior voter approval The City however has established financial policies governing the issuance of such debt. C O s may only be used to finance public improvements in special circumstances and only after determining the City's ability to assume additional debt. These criteria include situations where it would be more economical to issue C O s rather than revenue bonds and where the timing of the construction of a capital improvement and the expense of calling a bond election for a single proposition would in the opinion of staff and with the approval of the Council warrant the issuance of C O.s to finance the capital improvement. The proposed project described in the attached Notice of Intention qualifies to be eligible for C O Logname: 1310 WR CO NOI Page 1 of 2 financing The maximum amount of the C O.s sold shall not exceed $35 000 000 00 The C O s will be partially secured by a pledge of DFW Car Rental Taxes Upon City Council approval the City Manager shall publish the initial Notice of Intention no later than May 21 2010 The second Notice of Intention will be published the same day of the week following the first notice The City Council will be asked to approve the sale of the C O s and adopt the related ordinance on June 22, 2010 The C O.s are intended to be sold on a competitive basis It is anticipated that the closing and delivery of the C O funds will occur on July 29 2010 FISCAL INFORMATION /CERTIFICATION The Financial Management Services Director certifies that funds will be available upon completion of the sale closing and delivery of the Combination Tax and Revenue Certificates of Obligation Series 2010 for the project. FUND CENTERS TO FundlAccount/Centers FROM Fund/Account/Centers CERTIFICATIONS Submitted for City Manager's Office bv: Originating Department Head. Additional Information Contact: Logname 1310 WR CO NOI Karen Montgomery (6222) Lena Ellis (8517) James Mauldin (2438) Page 2 of 2