HomeMy WebLinkAboutOrdinance 22633-03-2017 ORDINANCE NO.22633-03-2017
AN ORDINANCE INCREASING APPROPRIATIONS IN THE WATER& SEWER
PRIOR LIEN DEBT SERVICE FUND BY $4,110,182.83, AND DECREASING
RESTRICTED CASH BY THE SAME AMOUNT, FOR THE PURPOSE OF
MAKING A TRANSFER TO A SEPARATE WATER & SEWER DEBT SERVICE
RESERVE FUND; 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 2016-2017 in the
Budget of the City Manager, there shall also be increased appropriations in the Water & Sewer Prior Lien
Debt Service Fund of$4,110,182.83, and decreased restricted cash by the same amount, for the purpose of
making a transfer to a separate Water&Sewer Debt Service Reserve Fund.
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 22393-09-2016 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of said prior ordinances and appropriations are hereby expressly repealed.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:
Denis C. cElro , onald P. Gonzales,
Sr.Assistant Ci orney Assistant City Secretary
ADOPTED AND EFFECTIVE: March 21,2017
Ordinance No. 22633-03-2017
Page 1 of 1
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/21/2017 - Ordinance No. 22633-03-2017 & 22634-03-
2017
DATE: Tuesday, March 21, 2017 REFERENCE NO.: G-18974
LOG NAME: 13W&S DEBT RESERVE
SUBJECT:
Authorize Transfer of$4,110,182.83 from the Water& Sewer Prior Lien Debt Service Fund to the Water&
Sewer Debt Service Reserve Fund and Adopt Appropriation Ordinances (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance increasing appropriations in the Water& Sewer Prior Lien Debt Service
Fund by $4,110,182.83 and decreasing restricted cash by the same amount, for the purpose of making a
transfer to a separate Water& Sewer Debt Service Reserve Fund;
2. Authorize a transfer in the amount of $4,110,182.83 from the Water& Sewer Prior Lien Debt Service
Fund to the Water& Sewer Debt Service Reserve Fund; and
3. Adopt the attached ordinance increasing estimated receipts and appropriations in the Water& Sewer
Debt Service Reserve Fund by $4,110,182.83, to better document compliance with bond obligations.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take actions to establish the Water
and Sewer System's Debt Service Reserve Fund as an independently and distinctly presented fund on the
City's financial records in order to better document on-going compliance with the requirements of the
Master Ordinance Establishing the City of Fort Worth, Texas Water and Sewer System Revenue
Financing Program (Master Ordinance) and associated bond covenants.
The Master Ordinance requires the City to create, establish, and maintain a separate fund designated as
the Reserve Fund, which is maintained for the benefit of the holders of certain outstanding first-lien, or
parity, obligations of the Water and Sewer System. For each series of obligations that are issued, the
supplemental ordinance authorizing sale of the debt instruments outlines the reserve requirements, if any,
that must be met.
Historically, required reserves were maintained as restricted cash within the Water& Sewer Debt Service
Funds on the City's General Ledger. Following implementation of the PeopleSoft financial system, the
Water& Sewer Debt Service Funds, including the restricted cash for reserves, were moved under the
auspices of the overarching Water and Sewer Operating Fund. At all times funds and assets associated
with meeting the reserve requirements were kept separate and distinct from other aspects of the Debt
Service Fund and maintained for the benefit of debt holders as required.
Following further review of the Master Ordinance and conversations with bond counsel, Staff has
determined it would be easier to document on-going compliance with the Master Ordinance and
Logname: 13WS DEBT RESERVE Page 1 of 2
associated bond covenants, where applicable, if the Reserve Fund were separated out on the financial
records. Adoption of this M&C and the attached ordinances will effectuate that change.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance, funds will be available in the Water& Sewer Debt Service Reserve
Fund in compliance with the Master Ordinance and Bond Covenants, as applicable.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year (Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: Anthony Rousseau (8338)
Logname: 13WS_DEBT RESERVE Page 2 of 2