HomeMy WebLinkAboutOrdinance 23172-04-2018 Ordinance No. 23172-04-2018
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
2018 TAX NOTE PROJECT FUND, IN THE AMOUNT OF $15,000,000.00, SUBJECT TO
SALE OF NOTES AND RECEIPT OF PROCEEDS FOR PURPOSES OF PAYING COSTS
OF PROJECTS IDENTIFIED IN THE ORDINANCE AUTHORIZING ISSUANCE AND SALE
OF THE NOTES AND PAYING COSTS OF ISSUANCE FOR THE NOTES, WITH SUCH
AMOUNTS SUBJECT TO REDUCTION TO CONFORM TO FINAL FIGURES REFLECTED
IN NOTE 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 2018 Tax Note
Project Fund in the amount of $15,000,000.00, subject to sale of notes and receipt of proceeds, for the
purpose of paying costs of projects identified in the ordinance authorizing issuance of the notes and paying
costs of issuance of the notes,with such amounts subject to reduction to conform to the final figures reflected
in the note 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 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said prior ordinances and appropriations are hereby expressly repealed.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.
APPI VED AS T FORM AND LEGALITY. CITY SECRETA
Denis . cElroy fiaJ. er
Senior Assistant COttorney
ADOPTED AND EFFECTIVE: April 10, 2018
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/10/2018 - Ordinance Nos. 23171-04-2018 8123172-04-
2018
DATE: Tuesday, April 10, 2018 REFERENCE NO.: G-19264
LOG NAME: 132018 TAX NOTES
SUBJECT:
Adopt Ordinance Authorizing Issuance of Tax Notes in an Aggregate Principal Amount Not to Exceed
$15,000,000.00, Approving Sale of the Notes, Establishing Parameters with Respect to Sale of the Notes,
Delegating to Designated City Officials Authority to Effect Sale of the Notes, Enacting Other Provisions
Related to the Subject, and Declaring an Immediate Effective Date and Adopt Appropriation Ordinance
(ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance authorizing the issuance and approving sale of 2018 Tax Notes in an
aggregate principal amount not to exceed $15,000,000.00; authorizing execution of all related
documents; and approving the sale of the notes subject to certain parameters, as set forth in the
ordinance, being met, including providing for levy, assessment and collection of a property tax sufficient to
pay the interest on and principal of the notes if other revenues are not otherwise available and
appropriated for those payments; and
2. Adopt the attached ordinance increasing estimated receipts and appropriations in the 2018 Tax Note
Project Fund in the amount of$15,000,000.00, for the purpose of paying (1) contractual obligations
incurred or to be incurred for the construction of identified public works and the purchase of materials,
supplies, equipment, machinery, buildings, lands, and rights-of-way associated therewith, and (ii) costs of
issuance of the notes, with appropriations subject to the sale of tax notes and receipt of proceeds and all
identified amounts being subject to reduction to conform to final figures reflected in note-closing
documents.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take actions associated with the
issuance and sale of Series 2018 tax notes for the purpose of paying (1) costs related to certain capital
projects, and (ii) costs of issuance of the notes. Proceeds from the sale of the tax notes will be used for
purchase of fire equipment, paying a portion of the costs associated with Brewer Road improvements, and
funding a portion of the costs associated with the new Como Community Center.
The Equipment Note Program for the City's Fire Department was established on February 9, 1999,
through the adoption of Ordinance No. 13701. Under the program, on an annual recurring basis, tax
notes are sold on the open market under a competitive process and proceeds are used to finance the
equipment replacement program for fire equipment and apparatus. In conjunction with the Fleet
Management Division of the Property Management Department, the Fire Department manages a fleet
rotation plan that annually identifies approximately $4.5 million in vehicles and equipment that have
reached their useful lives and are too old or costly to continue to utilize or maintain for public safety
Logname: 132018 TAX NOTES Page 1 of 2
operations. A portion of the proceeds from sale of the notes will be used to acquire equipment
replacements scheduled for Fiscal Year 2018.
The remaining proceeds will be used for the (i) a portion of the costs associated with construction of the
Brewer Road improvement project, which is being undertaken in conjunction with the Rock Creek Public
Improvement District, and (ii) part of the costs related to construction of a new community center in the
Como area.
Staff is recommending that these notes be sold through a competitive sale with identified city
representatives being authorized to approve the terms of the sale so long as it comes within the
parameters set forth in the Council-adopted ordinance. Key parameters include providing for levy,
assessment and collection of a tax sufficient to pay the interest on and principal of the notes if other
revenues are not otherwise available and appropriated for those payments. Additionally, the bonds are
structured with a 7 year term to comply with state law.
Rating agency presentations for Moody's, Fitch, Standard & Poor's, and Kroll will be conducted in late
April and early May of 2018. Ratings are anticipated to be received in Mid-May. Bids for the sale of the
notes are estimated to be submitted on June 6, 2018. Subsequent to accepting the best 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 10, 2018.
The attached appropriation ordinance reflects the maximum appropriation amount for note proceeds. Its
structure accommodates variables associated with sale of debt under delegated authority such as the
uncertain final interest rate to be achieved and the possibility of a premium or discount being associated
with the sale of the notes. To the extent numbers at closing are less than those reflected in the ordinance,
the available appropriation amount 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 upon adoption of the attached ordinances, the sale of the 2018 Tax
Notes will occur as required under the parameters set forth therein and that funds will be available in the
General Debt Service Fund to repay the debt when due and payable. Further, the 2018 Tax Note Fund
will be established and appropriations recorded.
FUND IDENTIFIERS (FIDs):
TO
lFund[Department ccoun Project Program ctivity Budget F Reference # �moul
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: Susan Alanis (8180)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: Alex Laufer (2268)
Logname: 132018 TAX NOTES Page 2 of 2