HomeMy WebLinkAboutOrdinance 22750-06-2017 ORDINANCE NO.22750-06-2017
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE VENUE PROJECT FUND BY $132,160,000.00 IN
THE 2017A BOND PROCEEDS ACCOUNT FROM SALE OF THE 2017A BONDS
AND BY $175,950,000.00 IN THE 2017B BOND PROCEEDS ACCOUNT FROM
SALE OF THE 2017B BONDS, SUBJECT TO SALE OF BONDS AND RECEIPT
OF PROCEEDS; 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 Venue
Project Fund of$132,160,000.00 in the 2017A Bond Proceeds Account from sale of the 2017A Bonds and
of$175,950,000.00 in the 2017B Bond Proceeds Account from sale of the 2017B Bonds, subject to the sale
of bonds and receipt of proceeds.
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of said prior ordinances and appropriations are hereby expressly repealed.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. cElroy, r. ssistant City Attorney "J. s ,e City ecretary
ADOPTED AND EFFECTIVE:June 6.2017
Ordinance No.22750-06-2017
Page 1 of 1
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/6/2017 - Ordinance No. 22747-06-2017, 22748-06-2017,
22749-06-2017, 22750-06-2017 & 22751-06-2017
DATE: Tuesday, June 6, 2017 REFERENCE NO.: G-19020
LOG NAME: 132017A&B SPECIAL TAX REVENUE BOND SALE
SUBJECT:
Adopt Ordinances Authorizing the Issuance of City of Fort Worth, Texas, Tax-Exempt Special Tax
Revenue Bonds, Series 2017A, in an Aggregate Principal Amount Not to Exceed $120,000,000.00 and City
of Fort Worth, Texas, Taxable Special Tax Revenue Bonds, Series 2017B, in an Aggregate Principal
Amount Not to Exceed $150,000,000.00, Establishing Parameters with Respect to the Sale of the Bonds,
Delegating to the Designated City Officials the Authority to Effect the Sale of Bonds, and Enacting Other
Provisions Relating to the Subject, and Authorize Necessary Transfers, and Adopt Appropriation
Ordinances (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance (i) authorizing the issuance of City of Fort Worth, Texas Tax-Exempt
Special Tax Revenue Bonds, Series 2017A, in an aggregate principal amount not to exceed
$120,000,000.00; (ii) approving the sale of the bonds subject to certain parameters being met and
delegating to the designated City officials authority to effect the sale within parameters; (iii) authorizing
purchase of one or more surety policies or other credit facilities as partial or full replacement for a cash-
funded debt service reserve; (iv) providing for the Public Contribution required from the City in accordance
with the Master Agreement and Funding Agreement previously adopted for the Multi-Purpose Arena; 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 ordinance (i) authorizing the issuance of City of Fort Worth, Texas Taxable Special
Tax Revenue Bonds, Series 2017B, in an aggregate principal amount not to exceed $150,000,000; (ii)
approving the sale of the bonds subject to certain parameters being met and delegating to the designated
City officials authority to effect the sale within parameters; (iii) authorizing purchase of one or more surety
policies or other credit facilities as partial or full replacement for a cash-funded debt service reserve; (iv)
providing for the Public Contribution required from the City in accordance with the Master Agreement and
Funding Agreement previously adopted for the Multi-Purpose Arena; 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; and
3. Adopt the attached appropriation ordinance increasing revenues and expenditures in the Venue Project
Fund (i) by $132,160,000.00 in the 2017A Bond Proceeds Account from sale of the 2017A Bonds and (ii)
by $175,950,000.00 in the 2017B Bond Proceeds Account from sale of the 2017B Bonds.
4. Authorize the following transfers:
(i) from the 2017A Bond Proceeds Account of the Venue Project Fund to the Venue Debt Service Fund:
(A) $12,010,000.00 to the 2017A Capitalized Interest Account and (B) $8,870,000.00 to the 2017A
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Required Reserve Account;
(ii) from the 2017B Bond Proceeds Account of the Venue Project Fund to the Venue Debt Service Fund:
(A) $14,030,000.00 to the 2017B Capitalized Interest Account and (B) $11,480,000.00 to the 2017B
Required Reserve Account;
(iii) from the 2017A Bond Proceeds Account of the Venue Project Fund to the Venue Capital Project Fund:
(A) $1,280,000.00 to the 2017A Cost of Issuance Project and (B) $110,000,000.00 to the 2017A
Multipurpose Arena Project; and
(iv) from the 2017B Bond Proceeds Account of the Venue Project Fund to the Venue Capital Project Fund:
(A) $1,840,000.00 to the 2017B Cost of Issuance Project, (B) $130,000,000.00 to the 2017B Multipurpose
Arena Project, (C) $15,600,000.00 to the Cattle Barn Project, (D) $1,000,000.00 to the Chiller Renovation
Project, and (E) $2,000,000.00 to the Technology Enhancements Project
5. Adopt the attached appropriation ordinance increasing revenues and expenditures in the Venue Debt
Service Fund (i) by $12,010,000.00 in the 2017A Capitalized Interest Account to make initial interest
payments on the 2017A Bonds, (ii) by $8,870,000.00 in the 2017A Required Reserve Account to provide
the required reserve for the 2017A Bonds, (iii) by $14,030,000.00 in the 2017B Capitalized Interest
Account to make initial interest payments on the 2017B Bonds, and (iv) by $11,480,000.00 in the 2017B
Required Reserve Account to provide the required reserve for the 2017B Bonds; and
6. Adopt the attached appropriation ordinance increasing revenues and expenditures in the Venue Capital
Project Fund (i) by $1,280,000.00 in the 2017A Cost of Issuance Project to pay costs of issuance for the
2017A Bonds, (ii) by $110,000,000.00 in the 2017A Multipurpose Arena Project to provide a portion of the
remaining Public Contribution, (iii) by $1,840,000.00 in the 2017B Cost of Issuance Project to pay costs of
issuance for the 2017B Bonds, (iv) by $130,000,000.00 in the 2017B Multipurpose Arena Project to
provide a portion of the remaining Public Contribution, (v) by $15,600,000.00 in the Cattle Barn Project to
fund a portion of other adjacent support facility improvements, (vi) by $1,000,000.00 in the Chiller
Renovation Project to fund a portion of other adjacent support facility improvements, and (vii) by
$2,000,000.00 in the Technology Enhancements Project to fund a portion of other adjacent support facility
improvements.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to approve the issuance and sale of
2017A and 2017B special tax revenue bonds that will allow the City to make the public contribution
associated with the Multi-Purpose Arena and will also provide funding for improvements to other adjacent
support facilities throughout the campus of the Will Rogers Memorial Center.
Staff is recommending that these bonds be sold through a Negotiated 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 were conducted the
week of May 17, 2017, and ratings are in the process of being published. City management is currently
evaluating bond insurance. Pricing is scheduled for a retail order period on June 19, 2017 and institutional
order period on June 20, 2017. Subsequent to accepting the underwriters' 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 July 12, 2017.
Note on appropriations -Although the total of appropriations may appear to exceed the amount of bonds
being issued, that is not the case. Each ordinance is written to make the appropriations subject to sale of
bonds and receipt of funds. This structure is intended to allow flexibility to accommodate variables
associated with the bonds being sold at a negotiated sale. In this transaction, a number of factors -- such
as whether a premium or discount is involved, whether the reserve will be cash funded or partially or
wholly surety-based, and the amount of taxable vs. non-taxable debt to be issued --will not be determined
Logname: 132017AB SPECIAL TAX REVENUE BOND SALE Page 2 of 3
until the bonds are ultimately priced and Purchase Agreements are executed. When the closing
statements for each sale are issued, they will direct how much is allocated and receipted for each
purpose.
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 and
2017B Special Tax bonds will occur as required under the parameters set forth therein and that funds will
be available in the Venue Project Fund to record the appropriate and necessary transactions.
FUND IDENTIFIERS (FIDs):
TO
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partment ccoun Project Program ctivity Budget Reference # �mount
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # mount
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: Alex Laufer (2268)
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