HomeMy WebLinkAboutOrdinance 22656-04-2017 ORDINANCE NO. 22656-04-2017
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN
THE WATER AND SEWER BOND 2017 FUND BY $16,991,157.00 IN PROCEEDS FROM
SALE OF $16,045,000.00 IN REVENUE BONDS AND LOAN PRINCIPAL
FORGIVENESS FUNDING FROM THE TEXAS WATER DEVELOPMENT BOARD IN
THE AMOUNT OF $946,157.00, SUBJECT TO SALE OF BONDS AND RECEIPT OF
FUNDS, FOR THE PURPOSE OF FUNDING SANITARY SEWER REHABILITATION
PROJECTS, PAYING COSTS OF ISSUANCE, AND MAKING A TRANSFER TO
PROVIDE A REQUIRED RESERVE; 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 estimated receipts and appropriations in the amount of
$16,991,157.00, in the Water and Sewer Bond 2017 Fund, in proceeds from sale of$16,045,000.00 in revenue
bonds and loan principal forgiveness funding from the Texas Water Development Board in the amount of
$946,157.00, subject to sale of bonds and receipt of funds, for the purpose of funding sanitary sewer rehabilitation
projects,paying costs of issuance, and making a transfer to provide a required reserve.
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appropriations are hereby expressly repealed.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:
ECot
Denis cEl , Sr. Assistant City Attorney onald P. Gonzales,A s'stant City Secretary
ADOPTED A D EFFECTIVE: April 4,2017
Ordinance No.22656-04-2017
Page 1 of 1
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/4/2017 - Ordinance No. 22655-04-2017, 22656-04-2017,
22657-04-2017, 22658-04-2017 & 22659-04-2017
DATE: Tuesday, April 4, 2017 REFERENCE NO.: G-18980
LOG NAME: 1317 CWSRF WATER&SEWER
SUBJECT:
Adopt Twenty-Ninth Supplemental Ordinance Authorizing Issuance and Sale of City of Fort Worth Texas
Water and Sewer System Revenue Bonds, Series 2017, in the Aggregate Principal Amount of
$16,045,000.00, and Approving Sale of the Bonds to the Texas Water Development Board, Waive
Provisions of the Financial Management Policy Statements, Authorize Transfers to Fund the Required
Reserve and Debt Payments, and Adopt Appropriation Ordinances (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached supplemental ordinance authorizing the issuance and sale of Water and Sewer
System Revenue Bonds, Series 2017, in the aggregate principal amount of$16,045,000.00, and
approving sale of the bonds to the Texas Water Development Board;
2. Waive the provision in the Financial Management Policy Statements which requires that the revenue
debt of the City shall generally have an average life of approximately 12 years;
3. Adopt the attached ordinance increasing estimated receipts and appropriations in the Water and Sewer
Bond 2017 Fund up to the amount of$16,991,157.00 from $16,045,000.00 in proceeds from sale of
revenue bonds and $946,157.00 in loan principal forgiveness funding from the Texas Water Development
Board, subject to sale of bonds and receipt of funds, to fund sanitary sewer rehabilitation projects, pay
costs of issuance of up to $378,941.00, and make a transfer to fund the required reserve;
4. Authorize transfer from the Water& Sewer Bond 2017 Fund to the Water& Sewer Debt Service
Reserve Fund in the amount up to $333,465.02 to fund the required reserve;
5. Adopt the attached ordinance, increasing estimated receipts and appropriations in the Water& Sewer
Debt Service Reserve Fund up to the amount of$$333,465.02 to provide the required reserve;
6. Adopt the attached ordinance increasing estimated receipts and appropriations in the Water and Sewer
Fund in the amount $55,000.00 from available net position for FY2017 interest payments on Water and
Sewer System Revenue Bonds, Series 2017;
7. Authorize transfer from the Water and Sewer Operating Fund to the Water& Sewer Debt Service Fund
in the amount of$55,000.00 to make interest payments on the 2017 Revenue Bonds in August 2017; and
8. Adopt the attached ordinance increasing estimated receipts and appropriations in the Water and Sewer
Debt Service Fund in the amount of$55,000.00 to provide authority to make the August 2017 Interest
Payment.
Logname: 1317 CWSRF WATERSEWER Page 1 of 3
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to approve the issuance and sale of
revenue bonds to the Texas Water Development Board (TWDB) to provide funding for sanitary sewer
rehabilitation projects in the City's Sewer System and to appropriate proceeds of the sale to fund the
rehabilitation projects, pay costs of issuance, and provide a required reserve.
The City's sanitary sewer rehabilitation program is specifically designed to eliminate sewer overflows
throughout the City. On September 20, 2016, the Mayor and Council approved a resolution authorizing
application to TWDB's Clean Water State Revolving Fund (CWSRF) program. The application was made
and approved, and the loan is anticipated to close around May 11, 2017.
The planned projects come under the auspices of TWDB's Clean Water State Revolving Fund, which
provides low-cost financial assistance for eligible projects. The subsidized interest rates offered by the
program are less than traditional debt-financing costs. In addition to the $16,045,000 loan, the Texas
Water Development Board has committed an additional $946,157.00 in loan principal forgiveness
reserved for"green" projects because the projects will address inflow and infiltration into the sewer
system.
In 1991, the City adopted a Master Ordinance establishing a Water & Sewer System Revenue Financing
Program for the Water Department. Each time the City issues debt for the Water& Sewer System, a
supplemental ordinance must be adopted which contains details specific to the debt being issued. This
issuance would be the twenty-ninth supplemental ordinance since the Master Ordinance was adopted.
Recommendations 3-5 appropriate the sale proceeds to pay for the projects and costs of issuance and to
fund the reserve required by the TWDB. The final three recommendations relate to appropriation and
transfer of available net position to make the initial interest payment on the bonds, which will be due later
this year. While staff has traditionally brought back an M&C to appropriate funds after the sale has
occurred, the current approach is proposed in an effort to make more efficient use of City Council time by
authorizing all of the financial activities associated with these bonds at one time.
This contract will be with a governmental entity, state agency or public institution of higher education: the
Texas Water Development Board.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that this debt issuance is part of the Water& Sewer System's five-year
Capital Improvement Program. Funding for the annual debt service payments will be available from the
current operating budget, as appropriated, of the Water and Sewer Fund. Adoption of the appropriation
ordinance will provide the necessary budget approval to record the sale of the debt and the associated
expenses, contribution to the reserve fund, and appropriations to capital projects.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Referene # moun
ID ID Year Chartfielcd 2
FROM
Logname: 1317 CWSRF WATERSEWER Page 2 of 3
FundDepartment ccount Project Program ctivity' Budget Reference # moun�
ID ID I Year I (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: John Samford (8500)
Logname: 1317 CWSRF WATERSEWER Page 3 of 3