HomeMy WebLinkAboutResolution 3896-06-2010A Resolution
NO 3896-06-2010
AUTHORIZING DEFEASANCE OF BONDS
WHEREAS, the City of Fort Worth Texas (the City") has outstanding the
following obligations
City of Fort Worth, Texas Combination Tax and Revenue Certificates of
Obligation, Series 1999 (the Certificates ') and
WHEREAS the proceedings adopted by the City Council authorizing the issuance
of the Certificates provide that the City may effect a defeasance of the Certificates prior
to their scheduled maturities and
WHEREAS City staff has determined and recommended to the City Council that
effecting the defeasance of the Certificates in the manner described below will be the
most beneficial use of available golf 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 Certificates maturing on March 1 m each of the years
2011 through 2020 aggregating $2,050 000 00 m principal amount (the `Defeased Obligations")
Section 2. That the Crty Manager is hereby directed to cause the Defeased Obligations to be
redeemed prior to their scheduled maturities. The Crty Manager is hereby directed to determine the date
the Defeased Obligations 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
Obligations shall be m substantially the form attached to this Ordinance as Exhibit A, and shall be given
m the manner provided m the proceedings authorizing the issuance of the Certificates.
Section 3 That the Crty Manager is hereby directed to fund the defeasance of the Defeased
Obligations from available water and sewer system revenues in an amount equal to the principal amount
of the Defeased Obligations to be redeemed, plus accrued interest on the Defeased Obligations 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.
ART WORT
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RESOLUTION NO 3896-06-2010
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 time, place and purpose of
such meeting was given, all as required by Chapter 551 Texas Government Code.
APPROVED AS TO FORM AND LEGALITY
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Adopted this 22na day of June 2010
ATTEST
By
Marty Hendrix City ecretary
ORTV410RTI~
APPROVED
CITY COUNCIL
JUN 2 2 2010
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Cfh-of Fort Worth. Texas
PASSED AND APPROVED the 22nd day of June 2010
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION:: Approved on 6/22/2010 -Res. No. 3896-06-2010, Ord. No. 19196-06-
. 2010 8~ 19197-06-2010
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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
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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
1)P243 538040 801299990100
2 3) D102 476243 0132000
3)D102 55XXXX 0132000
CERTIFICATIONS
FROM Fund/Account/Centers
$665.338.61 2) P243 538040 801299990100
$665.338.61 4) D102 55XXXX 0132000
$665.338.61
$665.338.61
Submitted for City Manager's Office b~ Karen Montgomery (6222)
Originating Department Head. Lena Ellis (8517)
$665,338.61
$2,050,000.00
Additional Information Contact: James Mauldin (2438)
Logname 1310 GOLF DEFEASANCE Page 2 of 2