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HomeMy WebLinkAboutOrdinance 23126-03-2018 Ordinance No. 23126-03-2018 AN ORDINANCE REDUCING UNALLOCATED RECEIPTS AND APPROPRIATIONS IN THE AMOUNT OF $600,000.00 IN THE WATER AND SEWER COMMERCIAL PAPER FUND, FOR WESTSIDE V ELEVATED STORAGE TANK AND WATER TRANSMISSION MAIN PROJECT; 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 reduced unallocated receipts and appropriations in the amount of$600,000.00 in the Water and Sewer Commercial Paper Fund, for Westside V Elevated Storage Tank and Water Transmission Main Project. 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 orjudgment 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 22928-09-2017 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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. APPROVE TO FORM AND LEGALI CITY SECRET G Jessica Sa va Mary J. ay Assistant a Attorney ADOPTED AND EFFECTIVE: March 6. 2018 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 3/6/2018 - Ordinance No. 23126-03-2018 & Resolution o. .a �..� 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 I 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 JTotal* 32016 Water and Sewer $256,110.00 $0.00 $256,110.00 Bond Fund 56005 2017A Water and Sewer $893,100.00 $0.00 $893,100.00 Bond Fund 56011 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 # mount 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