HomeMy WebLinkAboutOrdinance 18153-07-2008Ordinance No. 18153-07-2008
AN ORDINANCE INCREASING APPROPRIATIONS IN THE GENERAL DEBT
SERVICE FUND IN THE AMOUNT OF $50,000 FOR THE PURPOSE OF
AUTHORIZING PAYMENT OF ARBITRAGE REBATE TO THE U.S. TREASURY
FOR GENERAL PURPOSE BONDS, SERIES 2003 AND THE CITY'S
COMBINED TAX AND REVENUE CO, SERIES 2003 BONDS; PROVIDING FOR
A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF
PRIOR 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 2007-
2008 in the Budget of the City Manager, there shall also be increased appropriations in the General
Debt Service Fund in the amount of $50,000 for the purpose of authorizing payment of Arbitrage
Rebate to the U.S. Treasury for General Purpose Bonds, Series 2003 and the City's Combined Tax
and Revenue CO, Series 2003 Bonds.
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. 17749 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conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 TO FORM AND LEGALITY:
Assistant City ttorney
ADOPTED AND EFFECTIVE: July 8, 2008
C®tr of F®r~ VV®rth, Texas
iVlayor and Council Communication
COUNCIL ACTION: Approved on 7/8/2008 -Ord. No. 18153-07-2008
DATE: Tuesday, July 08, 2008
LOG NAME: 13ARBITRAGEREB2 REFERENCE NO.: **G-16186
SUBJECT:
Authorize Payment of Arbitrage Rebate for General Purpose Bonds, Series 2003, and the City's
Combined Tax and Revenue CO, Series 2003 Bonds in an Amount Not to Exceed $50,000.00, and
Adopt Supplemental Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize payment not to exceed $50,000.00 to the United States Treasury for arbitrage rebate; and
2. Adopt the attached supplemental appropriation ordinance increasing estimated receipts and
appropriations in the General Debt Service Fund.
DISCUSSION:
The payment request relates to the arbitrage yield restriction liability for the City's $42,560,000.00 General
Purpose Bonds, Series 2003, and the City's Combined Tax and Revenue CO, Series 2003 Bonds. Under
the Internal Revenue Service rules, an Issuer can invest the proceeds of a tax exempt bond issue at an
unlimited rate for the first three years (if this is positive a rebate liability may be generated). After the first
three years, the Issuer must restrict the yield on the investments to the bond yield or make a yield reduction
payment. The combined yield on the GO CO Series 2003 issue is 3.9975 percent. After the first three year
period, in years four and five, the investment rate of return was 4.36462 percent. Thus a yield reduction
payment is required. The requested payment represents the .36712 percent earnings in excess of the bond
yield.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of
the General Debt Service Fund. Upon approval the projected reserved fund balance of the General Debt
Service Fund will be $8,173,694.
TO Fund/Account/Centers FROM Fund/AccountlCenters
GD06 539650 0132000 $50.000.00 GD06 539650 0132000 $50.000.00
Submitted for City Manager's Office by: Karen Montgomery (6222)
Originating Department Head: Lena Ellis (8517)
Additional Information Contact: James Mauldin (2438)
Logname: 13ARBITRAGEREB2 Page 1 of 1