HomeMy WebLinkAboutResolution 3514-08-2007A Resolution
N~ 3514-08-2007
DIRECTING THE CITY MANAGER AND CITY STAFF TO PROCEED IN
EFFECTING THE DEFEASANCE OF CERTAIN OUTSTANDING TAX
SUPPORTED INDEBTEDNESS OF THE CITY OF FORT WORTH, APPROVING
THE EXECUTION OF AN ESCROW AGREEMENT IN RESPECT TO SUCH
DEFEASANCE AND RESOLVING OTHER MATTERS RELATED THERETO
WHEREAS, the City Council of the City of Fort Worth, Texas (the 'Council') has determined
that rt is m the best interest of the Crty of Fort Worth, Texas (the 'City") to effect the defeasance of
certain of the outstanding tax supported indebtedness of the City from lawfully .available funds of the
City as such obligations are described in Exhibit A attached hereto (the 'Obligations') and
WHEREAS, the City Manager has advised the Council that it is the intention to effect the
defeasance of the Obligations on or before September 5 2007 and
WHEREAS the Crty Manager has advised the Council that rt is iri the best interest of the Crty
that an escrow agreement be executed for the .purpose of placing into escrow the funds necessary to
,effect the defeasance of the Obligations and to provide for the investment of such funds. held m escrow
for such purpose
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS THAT
1 The Crty Manager and the Crty's Chief Financial Officer are hereby directed to proceed with
taking such steps as shall be necessary to effect the defeasance of the Obligations on or before
September 5 2007
2. The Escrow Agreement between the City and Wells Fargo Bank, National Association, as
escrow agent (the 'Escrow Agent"), in substantially the form attached to this Resolution, is hereby
approved, and the City Manager and City Secretary are hereby :authorized to be executed and deliver
such Escrow Agreement staff to the Escrow Agent in connection with the defeasance of the Obligations.
3 The City Manager is hereby authorized to take such steps as are necessary to cause notice of
redemption for the Obligations that shall be subject to redemption as described m Exhibit A to be
made in accordance with the terms of the ordinances authorizing the issuance of the Obligations so
called for redemption.
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4 The City Manager the Chief Financial Officer of the City any Assistant Crty Manager the
Director of Finance, the City Secretary or any Assistant Crty Secretary and all other officers,
employees, and agents of the City and each of them, shall be and they are hereby expressly authorized,
~ empowered and directed from time to time and at any time to do and perform all such acts and things
and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the
Crty all such instruments, whether herein mentioned, as may be necessary or desirable m order to carry
out the terms and provisions of this Resolution and the Escrow Agreement.
ADOPTED this 14th day of August 2007
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APPROVED
CITY COUNCIL
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AUG 1 4 2007
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City of Fort Worth, Texas
Mayor and Council Communication
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COUNCIL ACTION Approved on 8/14/2007 Resolution # 3514-08-2007 & Ordinance #17703-
08-2007
DATE Tuesday August 14 2007
LOG NAME 13DEBTDEFEASANC
REFERENCE NO G-15827
SUBJECT
Adopt Resolution Authorizing the Cash Defeasance of Certain Tax Supported Debt and Authorize
Execution of Related Escrow Agreement with Wells Fargo Bank, N A. and Adopt Supplemental
Appropriation Ordinance
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RECOMMENDATION
It is recommended that the City Council
1 Adopt the attached supplemental appropriation or
Fund in the amount of $48 000 000 and decreasing
amount;
linance increasing appropriations in the Debt Service
unreserved undesignated fund balance by the same
2. Adopt the attached resolution authorizing the defeasance of certain tax supported debt; and
3 Authorize the City Manager to execute an Escrow Agreement with Wells Fargo Bank, N A. to serve as
paying agent in effectuating the recommended debt defeasance subject to any non-material changes that
may be acceptable to the City Attorney
DISCUSSION
The defeasance of certain tax supported debt was included in upcoming debt issues presented to Council
during the budget presentation on June 15 and 16 and again on July 10 2007 Staff proposes utilizing
excess debt service fund balance to defease approximately $48 000 000 in outstanding tax supported
debt. This action will provide additional capacity for new debt related to current capital needs The
defeasance amount is based on Fiscal Year 2006 ending fund balance and Fiscal Year 2007 estimated
excess revenues.
The $48 000 000 appropriated under the attached ordinance will be deposited into an escrow account with
Wells Fargo Bank, N A. which will act as paying agent for the City in discharging the debt covered by the
attached Escrow Agreement.
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that upon approval of the above recommendations, contingent upon FY2007
excess overage of $7M and the adoption of the attached supplemental appropriation ordinance funds will
Logname 13DEBTDEFEA5ANC Page 1 of 2
be available in the current operating budget, as appropriated of the Debt Service Fund
TO Fund/Account/Centers FROM Fund/AccountlCenters
GD06 551010 0132000 $48,000.000.00 GD06 551010 0132000 $48,000,000.00
Submitted for City Manager's Office ~• Karen Montgomery (6222)
Originating Department Head Lena Ellis (8517)
Additional Information Contact: Mae Gray-Rossi (8325)
Logname 13DEBTDEFEASANC Page 2 of 2