HomeMy WebLinkAboutOrdinance 22969-10-2017 Ordinance No. 22969-10-2017
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
WATER & SEWER DEBT SERVICES RESERVE FUND, IN THE AMOUNT OF
$2,363,549.74, SUBJECT TO SALE OF BONDS AND RECEIPT OF PROCEEDS, FOR
PURPOSES OF PROVIDING THE REQUIRED RESERVE FOR THE CITY OF FORT
WORTH, TEXAS WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 2017B,
WITH SUCH AMOUNT SUBJECT AMOUNT SUBJECT TO REDUCTION TO CONFORM
TO FINAL FIGURE REFLECTED IN BOND CLOSING DOCUMENTS; 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 2017-2018 in the
Budget of the City Manager, there shall also be increased estimated appropriations in the Water & Sewer
Debt Service Reserve Fund in the amount of$2,363,549.74,subject to sale of bonds and receipt of proceeds,
for the purpose of providing the required reserve for the City of Fort Worth, Texas Water and Sewer System
Revenue Bonds, Series 2017B, with such amount subject to reduction to conform to final figure reflected in
bond closing documents.
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 22927-09-2017 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said prior ordinances and appropriations are hereby expressly repealed.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: TANT CITY SECRETARY
Denis . McElro onald P. Gonzales
Senior Assista42it"y Attorney
ADOPTED AND EFFECTIVE: October 17, 2017
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 10/17/2017 Ordinance-Nos. 22967-10-2017, 22968710-
2017,
2967-10-2017, 22968.10-2017, & 22969-10-2017
DATE: Tuesday, October 17, 2017 REFERENCE NO.: G-19141
LOG NAME: 1317 WATER & SEWER - SERIES 2017B
SUBJECT:
Adopt Thirty-First Supplemental Ordinance Authorizing Issuance and Sale of City of Fort Worth, Texas
Water and Sewer System Revenue Bonds, Series 2017B, in the Aggregate Principal Amount of
$63,000,000.00 and Approving Sale of the Bonds to the Texas Water Development Board and Adopt
Appropriation Ordinances (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
1. It is recommended that the City Council adopt the attached supplemental ordinance authorizing the
issuance and sale of Water and Sewer System Revenue Bonds, Series 2017B, in the aggregate principal
amount of$63,000,000 and approving the sale of the bonds to the Texas Water Development Board;
2. Adopt the attached ordinance increasing estimated receipts and appropriations in the Water and Sewer
Bond 2017B Project Fund in the amount of$63,000,000.00 from proceeds of the sale of revenue bonds,
to make system improvements, pay costs of issuance of up to $165,000, and to make a transfer of up to
$2,363,549,74 to the Water& Sewer Debt Service Reserve Fund to fund the required reserve, with all
such amounts subject to reduction to conform to final figures reflected in bond closing documents; and
3. Adopt the attached ordinance, increasing estimated receipts and appropriations in the Water& Sewer
Debt Service Reserve Fund in the amount of$2,363,549.74 from transferred bond proceeds to fund the
required reserve, with such amount subject to reduction to conform to final figure reflected in bond closing
documents.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to approve issuance and sale of revenue
bonds to the Texas Water Development Board (TWDB) providing the second phase of the two-part
subsidized financing for implementation of the multi-phase Advanced Metering Infrastructure (AMI) Project
along with an automated leak detection system. Sale of these bonds is projected to close on November
21, 2017 and the proceeds will be used to pay for final phases of the project, funding a reserve fund for
the bonds, and paying the costs of issuance.
The planned project comes under the auspices of TWDB's State Water Implementation Revenue Fund for
Texas (SWIRFT) Program, which provides low-cost financial assistance for eligible projects. The
subsidized interest rates offered by the program are less than traditional debt-financing costs. The
estimated borrowing cost for this debt issuance is 1.52 percent.
In 1991, the City adopted a Master Ordinance establishing a Water and Sewer System Revenue
Financing Program for the Water Department. Each time the Water Department issues debt, a
supplemental ordinance must be adopted which contains details specific to the debt being issued. This
Logname: 1317 WATER SEWER- SERIES 2017B Page 1 of 2
issuance would be the thirty-first supplemental ordinance since the Master Ordinance was adopted.
The attached ordinances reflect the maximum appropriations for proceeds, costs of issuance, and reserve
fund. To the extent numbers at closing are less than those reflected in the ordinances, available
appropriation amounts will be reduced as needed to reflect final figures based on the closing documents
to ensure appropriations do not exceed actuals.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that this debt issuance is part of the Water& Sewer 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 JProgram ctivity Budget Reference # moun
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)
8517)Bovos
Originating Department Head: Aaron (
Additional Information Contact: Alex Laufer (2268)
Logname: 1317 WATER SEWER- SERIES 2017B Page 2 of 2