HomeMy WebLinkAboutResolution 3877-04-2010A Resolution
NO 3877-04-2010
RESOLUTION AUTHORIZING DEFEASANCE OF BONDS
WHEREAS, the Crty of Fort Worth, Texas (the `City") has outstanding the following
obligations City of Fort Worth, Texas Water and Sewer System Revenue Bonds; Series 2000 (the `Serves
2000 Bonds") and
WHEREAS, the proceedings adopted by the City Council authorizing the issuance of the Series
2000 Bonds provide that the City may effect a defeasance of the Serves 2000 Bonds prior to their
scheduled maturities, and
WHEREAS, City staff has determined and recommended to the Czty Council that effecting the
defeasance of the Serves 2000 Bonds m the manner described below will be the most beneficial use of
available water and sewer system revenues, resulting in the reduction of the outstanding indebtedness
secured by such revenues.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS
Section 1 That the City Council hereby authorizes the use of water and sewer system revenues
for the purpose of effecting the defeasance of the Serves 2000 Bonds maturing on February 15 in each of
the years 2011 and 2012, aggregating $2,515,000 00 in principal amount (the `Defeased Bonds"}
Section 2 That the City Manager is hereby directed to cause the Defeased Bonds to be redeemed
prior to their scheduled maturities. The City Manager is hereby directed to determine the date the
Defeased Bonds are to be redeemed, provided, that the date fixed for redemption shall occur no more
than 90 days from the date this Ordinance is adopted. Notice of the redemption of the Defeased Bands
shall be in substantially the form attached to this Ordinance as Exhibit A, and shall be given in the
manner provided m the proceedings authorizing the issuance of the Series 2000 Bonds.
Section 3 That the City Manager is hereby directed to fund the defeasance of the Defeased
Bonds from available water and sewer system revenues m an amount equal to the principal amount of
the Defeased Bonds to be redeemed, plus accrued interest on the Defeased Bonds to the date fixed for
redemption.
Section 4 That this Resolution shall become effective immediately upon its adoption, in
accordance with the.provisions of Section 1201 028 Texas Government Code.
ORT WORT
T
RESOLUTION NO 3877-04-2010
Section 5 That this City Council officially finds and determines that the meeting at which this
Resolution is adopted was open to the public, and that public notice of the hme, place, and purpose of
such meeting was given, all as required by Chapter 551 Texas Government Code.
Adopted this 20`" day of April, 2010
ATTEST
By
Mary
ORT WORTH
APPROVED
CITY COUNCIL
APR 2 0 2010
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City Secretary of the
City o{ Fort Worth. Texas
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RESOLUTION NO 3877-04-2010 & ORDINANCE NO 19121-04-2010
NOTICE OF REDEMPTION
CITY OF FORT WORTH, TEXAS
Notice is hereby given that the following obligations issued by the City of Fort Worth, Texas (the 'City")
are called for redemption prior to their scheduled maturities on the dates and at the redemption price of par plus
accrued interest to the redemption date:
CITY OF FORT WORTH, TEXAS WATER AND SEWER SYSTEM REVENUE BONDS,
SERIES 2000 all obligations maturing on February 15 in each of the years 2011 and 2012,
aggregating $2,515 000 in principal amount; REDEMPTION DATE. June 15, 2010.
Maturity Date Pnncipal Amount Interest Rate CUSIP
02/15/2011 $1,220,000 5 00% 3495145F2
02/15/2012 $1,295 000 5 00% 349514560
Due provision for the payment of the above-described obligations has been made with Wells
Fargo Bank, N.A. ("Wells Fargo'), the paying agent for said obligations, and said obligations shall be
presented for payment either in person or by mail, at the following addresses.
First Class/Registered/Certified
Wells Fargo Bank, N.A.
Corporate Trust Operations
MAC N9303-121
P O Box 1517
Minneapolis, MN 55480
Express Delivery Only
Wells Fargo Bank, N.A.
Corporate Trust Operations
12th Floor
MAC N9303-121
6th and Marquette Avenue
Minneapolis, MN
By Hand Only
Northstar East Building
Corporate Trust Operations
608 2nd Avenue South
Minneapolis, MN
Interest on the redeemed obligations shall cease to accrue thereon after the redemption date.
CUSIP numbers have been assigned to this issue by the CUSIP Service Bureau and are included solely for
the convenience of the Bondholder Neither the City nor Wells Fargo shall be responsible for the selection or
correctness of the CUSIP numbers on the obligations or as indicated in any redemption notice.
IMPORTANT NOTICE. Under the provisions of the Jobs and Growth Tax Relief Reconciliation Act of
2003 (the Act"), paying agents making payments of interest or principal on municipal securities may be obligated
to withhold a 28% tax from remittance to individuals who have failed to furnish the paying agent with a valid
taxpayer identification number Owners of the Bonds who wish to avoid the imposition of the tax should submit
certified taxpayer identification numbers when presenting the Bonds for payment.
THIS NOTICE is given under authority of a resolution adopted by the City Council of the City on Apri120
2010
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City of Fort Worth, Texas
Mayor and Council Communication
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,COUNCIL ACTION: Approved on 4/20/2010 -Res. No. 3877-04-2010 8~ Ord. No. 19121,04-
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DATE Tuesday April 20 2010 REFERENCE NO G-16903
LOG NAME 1310 WATER DEFEASANCE
SUBJECT
Adopt a Resolution Authorizing the Cash Defeasance of All Outstanding Maturities of the City of Fort
Worth Texas, Water and Sewer System Revenue Bonds Series 2000 from Unreserved Undesignated
Fund Balance in the Water and Sewer Revenue Debt Service Fund in the Principal Amount of
$2 515 000 00 and Adopt Supplemental Appropriation Ordinance
RECOMMENDATION
It is recommended that the City Council
1 Adopt the attached supplemental appropriation ordinance increasing appropriations in the Water and
Sewer Revenue Debt Service Fund in the amount of $2 515 000 00 and decreasing unaudited
unreserved undesignated fund balance by the same amount; and
2. Adopt the attached resolution authorizing the cash defeasance of all outstanding maturities of the City
of Fort Worth Texas Water and Sewer System Revenue Bonds, Series 2000
DISCUSSION
On July 18 2000 the City Council authorized the issuance and sale of $25 000 000 00 to the City of Fort
Worth Texas, Water and Sewer System Revenue Bonds Series 2000 (M&C G-12962). After years of
debt service and a portion of the issue being refunded $2 515 000 00 of principal remains Staff
recommends utilizing available Water and Sewer Revenue Debt Service Fund balance to defease the
remaining outstanding debt.
In addition to reducing the Water Department's debt load defeasing this debt utilizing cash balances would
result in savings of approximately $100 000 00
FISCAL INFORMATION /CERTIFICATION
The Financial Management Services Director certifies that upon approval of the above recommendations
and the adoption of the attached resolution and supplemental appropriation ordinance funds will be
available in the current operating budget, as appropriated of the Water and Sewer Revenue Debt Service
Fund
FUND CENTERS
TO Fund/Account/Centers FROM Fund/Account/Centers
1) PE47 551010 0132000 $2,515,000.00 2) PE47 551010 0132000 $2,515.000.00
CERTIFICATIONS
Logname 1310 WATER DEFEASANCE
Page 1 of 2
Submitted for City Manager's Office b~ Karen Montgomery (6222)
Originating Department Head. Lena Ellis (8517)
Additional Information Contact: James Mauldin (2438)
Logname• 1310 WATER DEFEASANCE Page 2 of 2