HomeMy WebLinkAboutOrdinance 22472-10-2016 ORDINANCE NO. 22472-10-2016
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN
THE FIRE APPARATUS CAPITAL PROJECT FUND BY $9,525,000.00, SUBJECT TO
THE SALE OF TAX NOTES AND RECEIPT OF PROCEEDS, FOR THE PURPOSE OF
FUNDING THE PURCHASE OF FIRE APPARATUS AND PAYING ISSUANCE COSTS;
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 Fire
Apparatus Capital Project Fund in the amount of$9,525,000.00, subject to the sale of tax notes and receipt of
proceeds, for the purpose of funding the purchase of fire apparatus and paying costs of issuing the notes.
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 No. 22394-09-2016 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ordinances and appropriations are hereby expressly repealed.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. McE y, Assistant City Attorney M y J. Ka , 1ty S 6 retary
ADOPTED AND EFFECTIVE: October 18, 2016 Ordinance No.22472-10-2016
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 10/18/2016 -Ordinance No..22471-10-2016 8'.22472-10-
2016
DATE: Tuesday, October 18, 2016 REFERENCE NO.: G-18856
LOG NAME: 132016 TAX NOTES
SUBJECT:
Adopt Ordinance Authorizing Issuance of Tax Notes in the Principal Amount of$9,525,000.00 for the
Purpose of Purchasing Fire Apparatus, Approving Sale of Notes, Authorizing Execution of All Related
Documents and Ordaining Other Matters Related Thereto and Adopt Appropriation Ordinance (ALL
COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance authorizing the issuance of 2016 Tax Notes in the principal amount of
$9,525,000.00 for the purpose of purchasing fire apparatus for Fiscal Years 2016 and 2017, approving the
sale of the notes, authorizing execution of all related documents, providing for the levy, assessment and
collection of a tax sufficient to pay the interest on said notes and creating a sinking fund for the payment of
principal; and
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Fire Apparatus Capital Project Fund in the amount of $9,525,000.00, subject to the sale of tax notes and
receipt of proceeds, for the purpose of funding the purchase of fire apparatus and paying costs of
issuance.
DISCUSSION:
On February 9, 1999, through the adoption of Ordinance No. 13701, the City of Fort Worth established the
Equipment Note Program for the Fire Department. On a reoccurring basis, tax notes are sold on the open
market under a competitive process and proceeds are used to finance the equipment replacement
program established for fire equipment and apparatus. In conjunction with the Fleet Management Division
of the Property Management Department, the Fire Department manages a fleet rotation plan that annually
identifies approximately $4 million in vehicles and equipment that have reached their useful lives and are
too old or costly to continue to utilize for public safety operations.
On September 28, 2016, the City sent invitations to 42 banks and financial institutions asking them to
provide interest rates for these notes. The notes will be a qualified tax-exempt obligation of the City,
backed by the full-faith and credit of the City's taxing authority. The City will begin repayment of the
seven-year notes in March 1, 2017, from a dedicated center within the General Debt Service Fund, with
repayment costs for these notes projected to be fully absorbed by revenue from the debt-rate portion of
the City's property taxes without any increase in the rate. The notes will also be callable at the City's
option on or after March 1, 2020.
Proceeds from sale of the notes will be used to pay issuance costs and to acquire equipment
Logname: 132016 TAX NOTES Page 1 of 2
replacements scheduled for Fiscal Years 2016 and 2017 and to purchase apparatus for new Fire Station
42. The specific equipment projected to be acquired consists of: six engines, two brush trucks, one tower
ladder, two regular ladders and two rescue vehicles.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that upon adoption of the attached ordinance, the sale of the 2016 Tax
Notes will occur as required and that funds will be available in the General Debt Service Fund and in the
Fire Apparatus Capital Project Fund to record the appropriate and necessary transactions.
The Director of Finance also certifies that funds will be available to make the debt service payments on
these obligations and funds will be available in the General Debt Service Fund, as appropriated, to satisfy
the City's obligations.
FUND IDENTIFIERS (FIDs):
TO _
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year (Chartfield2)
FROM
Fund Department ccoun Project Program ctivity Budget Reference # mount
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office b� Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: Trey Imes (8558)
Logname: 132016 TAX NOTES Page 2 of 2