HomeMy WebLinkAboutOrdinance 22718-05-2017 ORDINANCE NO.22718-05-2017
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE WATER AND SEWER DEBT SERVICE FUND IN
THE AMOUNT OF $19,590.735.00, SUBJECT TO THE SALE OF BONDS AND
RECEIPT OF PROCEEDS, WITH $18,890,735.00 FOR THE PURPOSE OF
FUNDING THE REQUIRED ESCROW TO REFUND EXISTING DEBT AND
$700,000 FOR THE PURPOSE OF MAKING THE AUGUST 2017 INTEREST
PAYMENT ON THE 2017A BONDS; 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 in the
Water and Sewer Debt Service Fund in the amount of $19,590.735.00, subject to the sale of bonds and
receipt of proceeds, for the purpose of refunding existing debt, subject to the sale of the bonds and receipt of
proceeds, with $18,890,735.00 for the purpose of funding the required escrow to refund existing debt and
$700,000 for the August 2017 Interest Payment on the 2017A bonds
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of said prior ordinances and appropriations are hereby expressly repealed.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.
7 OVEIDCJ TO:FORM AND LEGALITY:
Deni . McEI oy, Sr.Assistant City Attorney MaryJ.Ka er ity geOetary
ADOPTED AND EFFECTIVE: May 9,2017
Ordinance No.22718-05-2017
Page 1 of 1
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/9/2017 -Ordinance No. 2271605-2017, 22717-05-2017 &
22718-05-2017
DATE: Tuesday, May 9, 2017 REFERENCE NO.: G-19002
LOG NAME: 132017 WATER REVENUE SALE
SUBJECT:
Adopt Thirtieth Supplemental Ordinance Authorizing the Issuance of City of Fort Worth, Texas Water and
Sewer Revenue Refunding and Improvement Bonds, Series 2017A, In An Aggregate Principal Amount Not
to Exceed $120,000,000; Establishing Parameters With Respect to the Sale of the Bonds; Delegating to
the Designated City Officials the Authority to Effect the Sale of Bonds; Approving Escrow Agreement; and
Enacting Other Provisions Relating to the Subject; and Adopt Appropriation Ordinances (ALL COUNCIL
DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached supplemental ordinance (i) authorizing the issuance of City of Fort Worth, Texas
Water and Sewer System Revenue Refunding and Improvement Bonds, Series 2017A, in an aggregate
principal amount not to exceed $120,000,000; (ii) approving the sale of the bonds subject to certain
parameters being met; (iii) approving execution of an Agreement for the retirement of the refunded
obligations, if any, and other instruments related to the issuance of the bonds; (iv) providing for the
establishment of rates and collection of revenues sufficient to pay the principal and interest on said bonds;
and (v) waiving the provision in the Financial Management Policy Statements that states the revenue debt
of the City shall generally have an average life of approximately 12 years;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water& Sewer Bond 2017A Fund in the amount of$101,109,265.00, subject to the sale of the bonds and
receipt of proceeds, for the purpose of funding capital improvements and paying the costs of issuance;
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water and Sewer Fund in the amount of$700,000.00 from available net position for FY 2017 interest
payments on the 2017A Revenue Bonds; and
4. Adopt the attached ordinance increasing estimated receipts and appropriations in the Water & Sewer
Debt Service Fund in the amount of$19,590.735.00, subject to the sale of the bonds and receipt of
proceeds, with $18,890,735.00 for the purpose of funding the required escrow to refund existing debt and
$700,000.00 for the August 2017 Interest Payment on the 2017A Bonds.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to approve the issuance and sale of
refunding and improvement bonds that will allow refinancing of existing Water and Sewer debt obligations
to achieve a net savings and will provide additional funding for system improvements.
Logname: 13_2017 WATER REVENUE SALE Page 1 of 2
It is the City of Fort Worth's practice to achieve positive debt service savings through refinancing when the
opportunity presents itself. Staff and the City's Co-Financial Advisors, First Southwest, a division of Hilltop
Securities, and Estrada Hinojosa, are recommending the callable portion of the 2008 Water and Sewer
System Revenue Bonds be refunded, with a par amount outstanding of$19,800,000.00.
This refunding will offer an estimated present value savings of approximately $879,981.28, or 4.444
percent of the refunded principal amount. The actual savings amount will not be determined until the time
bids are received. However, in accordance with the City's Financial Management Policy Statements, the
ordinance provides that the refunding debt shall not be sold unless the sale will result in net present value
savings of at least 3.5 percent of the par amount being refunded.
The proposed debt transactions also include the issuance of$100,000,000.00 in new funds for capital
projects in alignment with the Water& Sewer System's Capital Improvement Plan. Proceeds for the new
money portion of the issue will be primarily used to fund expenses related to major water transmission
mains and wastewater collectors. In addition, capital projects include water storage capacity.
Staff is recommending that these bonds be sold through a competitive bid sale with the City Manager or
the Chief Financial Officer being authorized to approve the terms of the sale so long as it comes within the
parameters set forth in the Council-adopted ordinance. Rating agency presentations for Moody's, Fitch,
and Standard & Poor's were conducted the week of April 24, 2017. Ratings are anticipated to be received
in early May. Bids for the sale of the bonds are scheduled to be submitted on May 23, 2017. Subsequent
to accepting the best bid and awarding the sale of the bonds, the City will seek approval of the debt
transactions from the Texas Attorney General with an estimated closing date of June 27, 2017.
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 ordinances, the sale of the 2017A
Water and Sewer System Revenue Refunding and Improvement Bonds will occur as required under the
parameters set forth therein and that funds will be available in the Water and Sewer Debt Service Fund
and in the Water and Sewer Bond 2017A Fund to record the appropriate and necessary transactions.
FUND IDENTIFIERS (FIDs):
TO
Fund Department I ccoun Project JProgramActi�'�i Budget Reference # moun
ID ID ( Year (Chartfield 2
FROM
ID ID
am�A�ctivity Budget Reference # mount
p _ TMg # P Year (Chartfield 2)
Fund De artment ccoun Pro,ect Pro r
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: John Samford (2318)
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