HomeMy WebLinkAboutResolution 4910-03-2018 A Resolution
NO. 4910-03-2018
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE
WESTSIDE V ELEVATED STORAGE TANK AND WATER TRANSMISSION
MAIN PROJECT
WHEREAS, the City of Fort Worth, Texas (the "City") is a home-rule
municipality and political subdivision of the State of Texas; and
WHEREAS, the City expects to pay expenditures in connection with the design,
planning, acquisition and construction for the Westside V Elevated Storage Tank
Project and Water Main Project (the "Project") prior to the issuance of obligations
by the City in connection with the financing of the Project from available funds; and
WHEREAS, the City finds, considers, and declares that the
reimbursement of the City for the payment of such expenditures will be
appropriate and consistent with the lawful objectives of the City and,
as such, chooses to declare its intention, in accordance with the
provisions of Section 1.150-2 of the Treasury Regulations, to reimburse
itself for such payments at such time as it issues obligations to finance
the Project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
Section 1. The City reasonably expects debt, as one or more series of
obligations, may be issued or incurred by the City with an aggregate maximum
principal amount not to exceed $750,000.00 for the purpose of paying the
aggregate costs of the Project.
Section 2. All costs to be reimbursed pursuant hereto will be capital
expenditures. No obligations will be issued by the City in furtherance of this
Statement after a date which is later than 18 months after the later of (1) the
date the expenditures are paid or (2) the date on which the property, with
respect to which such expenditures were made, is placed in service.
Section 3. The foregoing notwithstanding, no obligation will be issued
pursuant to this Statement more than three years after the date any
ORTWORTU, Q
expenditure which is to be reimbursed is paid.
Adopted this 6th day of March, 2018.
ATTEST: OF TO&J.�
.O
B
I
Mary J. Kayser,J* y Secre ary
�XAS
ORTWo
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/6/2018 -Ordinance No. 23126-03-2018 & Resolution No.
4910-03-2018
DATE: Tuesday, March 6, 2018 REFERENCE NO.: **G-19238
LOG NAME: 60WESTSIDE V EST
SUBJECT:
Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and
Adopt Appropriation Ordinance in the Amount of$600,000.00 for the Fee Simple and Easement
Acquisitions for the Construction of the Westside V Elevated Storage Tank and Water Transmission Main
(COUNCIL DISTRICT 3 and City's ETJ)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached resolution expressing official Intent to reimburse expenditures with proceeds of
future enterprise fund debt for the Westside V Elevated Storage Tank and Water Transmission Main
Project; and
2. Adopt the attached appropriation Ordinance reducing unallocated appropriations and increasing
appropriations for the Westside V Elevated Storage Tank and Water Transmission Main Project in the
Water and Sewer Commercial Paper Fund in the amount of$600,000.00. (City Project No. 100378)
DISCUSSION:
On June 21, 2016, Mayor and Council Communication (M&C C-27784) the City Council authorized an
engineering agreement for the Westside V Elevated Storage Tank and Water Transmission Main Project.
This elevated tank and transmission main will provide water service to the Westside V pressure plane,
which includes the Morningstar and Walsh Ranch developments. Acquisition of land for the elevated
storage tank and water transmission mains is necessary prior to going to construction. The attached
appropriation ordinance provides the funds for fee simple and easement acquisitions necessary for the
elevated water storage tank and water transmission mains.
This project is anticipated to be included in a future revenue bond issue for the Water and Sewer Fund.
Available cash within the Water and Sewer portfolio and the City's portfolio along with the appropriation
authority authorized under the Callable Commercial Paper Program (CP) will be used to provide interim
financing for this project until debt is issued. To the extent resources other than the Water and Sewer
portfolio are used to provide interim financing, the Water and Sewer Fund will be charged interest that is
equivalent to the overall rate of return being earned by the City portfolio (currently approximately one-
percent annually). Should the City's portfolio not support the liquidity needed to provide an interim short-
term financing source, another funding source will be required, which could mean issuance of securities
under the CP Program or earlier issuance of Water and Sewer revenue bonds than is currently planned.
Once debt associated with this project is sold, bond proceeds will be used to reimburse the Water and
Sewer portfolio and the City's portfolio in accordance with the attached Reimbursement Resolution.
The City Council adopted the Water Department's Fiscal Year 2018-2022 Five Year Capital Improvement
Logname: 60WESTSIDE V EST Page 1 of 3
Plan on December 12, 2017 (M&C G-19187). This City Council-adopted plan includes this specific project,
with funding identified through the CP program to be reimbursed with future revenue bonds. In accordance
with the provisions of the Financial Management Policy Statement, staff anticipates presenting revenue-
supported debt issuances to the City Council for consideration within the next three years. This debt must
be issued within approximately three years to provide reimbursement for these expenses. If that does not
occur, the costs will no longer be reimbursable by issuing tax-exempt debt and the funding source will
have to be made whole through budgetary methods. Adoption of this resolution does not obligate the City
to sell bonds, but preserves the ability to reimburse the City from tax-exempt bond proceeds.
This project will have no impact on the Water Department's operating budget.
This project is located in COUNCIL DISTRICT 3 and the City's ETJ.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance, funds will be available in the Water/Sewer Commercial Paper Fund for
the Westside V Elevated Storage Tank and Water Transmission Main Project. The Water & Sewer
Commercial Paper Fund includes authority of$150,000,000.00 for the purpose of providing interim
funding for Water and Sewer Capital Projects. After this transfer, the balance will be $97,893,570.00 for
future capital projects.
Funding for the Westside V Elevated Storage Tank and Water Transmission Main Project is depicted in
the table below.
FUND Existing Additional Project
Appropriations Appropriations Total*
12016 Water
and Sewer
Bond Fund $256,110.00 $0.00 $256,110.00
156005
2017A Water
land Sewer $893,100.00 $0.00 $893,100.00
Bond Fund
56011 I
!Water and__..__._
Sewer DPN $0.00 $600,000.00 $600,000.00
Fund 56014
!Project Total $1,149,210.00 $600,000.00 $1,749,210.00
* Numbers rounded for presentation purposes.
Logname: 60WESTSIDE V EST Page 2 of 3
FUND IDENTIFIERS (FIDS):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Kenneth Morgan (8246)
Additional Information Contact: Chris Harder (5020)
Logname: 60WESTSIDE V EST Page 3 of 3