HomeMy WebLinkAboutOrdinance 22913-09-2017 Ordinance No. 22913-09-2017
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN
THE WATER PRIORITY LIEN DEBT SERVICE FUND IN THE AMOUNT OF$6,205,021.99
FROM TRANSFERRED OPERATING FUNDS,TO ENHANCE COMPLIANCE WITH BOND
COVENANTS; 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 Water
Priority Lien Debt Service Fund in the amount of$6,205,021.99 from transferred operating funds to enhance
compliance with bond covenants.
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said prior ordinances and appropriations are hereby expressly repealed.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: CITY SECRETARY
S r
C
Denis c Troy nior Assistant City Attorney Vary . Kayse
ADOPTED AND EFFECTIVE: September 26. 2017
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/26/2017 -Ordinance Nos. 22913-09-2017 & 22914-09-
2017
DATE: Tuesday, September 26, 2017 REFERENCE NO.: **G-19110
LOG NAME: 13WATERTRANSFER
SUBJECT:
Authorize Transfers from the Water Operating Fund Totaling $8,000,000.00 to the Water Priority Lien and
Water Subordinate Lien Debt Service Funds and Adopt Appropriation Ordinances (ALL COUNCIL
DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the transfer of$6,205,021.99 in available funds from the Water& Sewer Operating Fund to
the Water Priority Lien Debt Service Fund to support an initiative to fulfill transfer and fund balance/net
position covenants required for debt service as laid out in the bond documents;
2. Adopt the attached appropriation ordinance increasing the estimated receipts and appropriations in the
Water Priority Lien Debt Service Fund in the amount of$6,205,021.99 for the purpose of paying debt
service coming due and supporting the initiative to fulfill transfer and fund balance/ net position covenants
required as laid out in the bond documents;
3. Authorize the transfer of$1,794,978.01 in available funds from the Water& Sewer Operating Fund to
the Water Subordinate Lien Debt Service Fund to support the initiative to fulfill transfer and fund balance /
net position covenants required for debt service as laid out in the bond documents; and
4. Adopt the attached appropriation ordinance increasing the estimated receipts and appropriations in the
Water Subordinate Lien Debt Service Fund in the amount of$1,794,978.01 for the purpose of paying debt
service coming due and supporting initiative to fulfill transfer and fund balance/ net position covenants
required as laid out in the bond documents.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take actions to enhance compliance
with bond covenants of the Water and Sewer System Revenue Financing Program.
The Department of Finance, in conjunction with the Water Department, has completed a review of existing
debt covenants and requirements associated with the System's current outstanding revenue bond
issues. As a result of this review, it has been determined that the current balances maintained within the
Water& Sewer Debt Service Funds (Priority Lien and Subordinate Lien) are below calculated
requirements. The appropriations and transfers outlined within this M&C reallocate funds that are
available within Fiscal Year 2017 as a result of positive operating results in the Water Department to the
debt service funds to increase the balances within these funds. This activity is planned on an annual
basis until adequate reserves are in place.
Logname: 13 WATERTRANSFER Page 1 of 2
The City's current practice includes budgeting funds required to meet the annual debt service obligations
for each Fiscal Year, and then transferring that total via a series of equal monthly installments that
commences on October 1 and continues through the subsequent and respective debt service payment
date. In effect, the yearly transfer amounts have equaled the total principal and interest payments due for
the Fiscal Year. While this practice has supported the timely payment of principal and interest of all bonds
outstanding without missing a debt service payment, it is not in full compliance with the technical
requirements of certain bond covenants.
The System's bond documents call for monthly installments of a portion of the subsequent principal and
interest payments that are due, with those transfers to occur on an on-going basis from each principal or
interest payment date to the next, resulting in a funding schedule that would cross Fiscal Years. As such,
the actions outlined within this M&C are a step toward ensuring the fulfillment of covenants moving
forward.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that funds are available in the Water Operating Fund, as appropriated, to
support the above recommendations and the transfers to the Water& Sewer Priority Lien Debt Service
Fund and the Water & Sewer Subordinate Lien Debt Service Fund.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project ProgramActivity Budget Reference # Amount
ID ID Year Chartfield 2
560091 0132000 4956001 6,205,021.99
).560101 0132000 4956001 1,794,978.01
FROM
Fund Department Accouni Project ProgramActivity Budget Reference # Amount
ID ID Year Chartfield 2
N1 56001 0608001 5939802 $6,205,021.99
3 56001 0608001 5939802 $1,794,978.01
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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