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HomeMy WebLinkAboutOrdinance 19197-06-2010Ordinance No 19197-06-2010 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GOLF DEBT SERVICE FUND IN THE AMOUNT OF $665,338 61 FROM AVAILABLE FUNDS FOR THE CASH. DEFEASANCE OF ALL OUTSTANDING MATURITIES OF THE CITY OF FORT WORTH, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION SERIES 1999 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 2009-2010 in the Budget of the City Manager there shall also be increased estimated receipts and appropriations in the Golf Debt Service Fund. in the amount of $665 338 61 from available funds, for the cash defeasance of all outstanding maturities of the City of Fort Worth, Texas, Combination Tax and Revenue Certificates of Obligation, Series 1999 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.18809 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 Assistant Ci ~! Attorney ADOPTED AND EFFECTIVE. June 22, 2010 City of Fort Worth, Texas Mayor and Council Communication CQUNCIL ACTION: Approved on 6/22/2010 Res. No._ 3896-06-20..10, Ord. No. 19196-06- 201 Q & 19197-06-2010 a ~ DATE Tuesday June 22 2010 REFERENCE NO G-16966 LOG NAME 1310 GOLF DEFEASANCE SUBJECT Adopt a Resolution Authorizing the Cash Defeasance of All Outstanding Golf Maturities of the City of Fort Worth Texas, Combination Tax and Revenue Certificates of Obligation Series 1999 in the Principal Amount of $2 050 000 00 Authorize Transfer of Funds from the Golf Capital Project Fund (Gas Wells) to the Golf Debt Service Fund and Adopt Appropriation Ordinances RECOMMENDATION It is recommended that the City Council 1 Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Golf Capital Project Fund (Gas Wells) in the amount of $665 338 61 from available funds 2 Authorize the transfer of $665 338 61 from the Golf Capital Project Fund (Gas Wells) to the Golf Debt Service Fund 3 Adopt the attached supplemental appropriation ordinance increasing estimated receipts and appropriations in the Golf Debt Service Fund in the amount of $665 338 61 from available funds and 4 Adopt the attached resolution authorizing the cash defeasance of all outstanding maturities of the City of Fort Worth Texas Combination Tax and Revenue Certificates of Obligation Series 1999 DISCUSSION The Golf Enterprise Fund currently has a debt service balance of $2 050 000 00 as of May 2010 This debt is a result of revenue bonds sold in the late 1990's and designated for improvements at both Pecan Valley and Meadowbrook Golf Course Currently the City of Fort Worth Financial Management Policy Statements (Sect. I Revenues Subsection 14 a Bonus and Royalty Revenue Management; Municipal Golf Fund) stipulates that all revenues generated through lease bonus or royalties on golf course properties be divided equally between payment of Debt Service/Fund Balance and Golf Course Capital Improvements The anticipated Gas Fund's balance after receipt of the Meadowbrook Golf Course gas bonus is estimated at $3 017 514 00 In accordance with the Financial Management Policy $1 379,281 00 is designated for debt service and $1 638 233 00 for future capital improvements Once the debt is retired there will be an estimated $967 514 00 in the Capital Improvement Fund The use of Gas Well Revenue to retire the outstanding Golf Debt would eliminate the principal and interest payment in Golfs annual operating budget, thus reducing the operating budget approximately $300 000 00 per year Logname• 1310 GOLF DEFEASANCE Page 1 of 2 The Golf Advisory Committee endorsed this request on May 12 2010 and the Parks and Community Services Advisory Board endorsed on May 26 2010 in their regularly scheduled meetings FISCAL INFORMATION /CERTIFICATION The Financial Management Services Director certifies that upon approval of the above recommendations and adoption of the attached supplemental appropriation ordinance funds will be available in the current operating budget, as appropriated of the Golf Debt Service Fund FUND CENTERS TO Fund/Account/Centers 1) P243 446100 801299990100 11P243 538040 801299990100 2 3)D102 476243 0132000 3)D102 55XXXX 0132000 FROM Fund/Account/Centers $665.338.61 2)P243 538040 801299990100 $665,338.61 4) D102 55XXXX 0132000 $665,338.61 $665.338.61 CERTIFICATIONS Submitted for City Manager's Office b~ Karen Montgomery (6222) Originating Department Head. Lena Ellis (8517) Additional Information Contact: James Mauldin (2438) $665,338.61 $2.050.000.00 Logname: 1310 GOLF DEFEASANCE Page 2 of 2