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HomeMy WebLinkAboutOrdinance 23265-06-2018 Ordinance No. 23265-06-2018 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GENERAL DEBT SERVICE FUND, IN THE AMOUNT OF$982,313.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF PAYING COST OF ISSUANCE ON THE GENERAL PURPOSE BONDS, SERIES 2018; 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 receipts and appropriations in the Debt Service Fund in the amount of $982,313.00, from available funds, for the payment of cost of issuance associated with the sale of general purpose bonds, series 2018. 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 FM AND LEGALITY: CITY SECRETARY i' Deni . McElroy Mary J. Ka r Seni r Assistant Attorney ADOPTED AND EFFECTIVE: June 26, 2018 HlilltopSecurities im AI!Mitap Fbgvps Company TABLE OF CONTENTS City of Fort Worth,Texas $62,220,000 General Purpose Bonds,Series 2018 (Funding$64,350,000/20 Yr.Amortization) Tax Exempt Rate as of 06/06/2018(AA+/AA+/Aa3/AA) ***Winning Bid From R.W.Baird&Co.*** Report Page Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Bond Summary Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 BondPricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Costof Issuance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Jun 6,2018 11:19 am Prepared by Hilltop5ecurities(am]) (Finance 7.017 FORT WORTH:2019_GO2-18_GO) Sources and Uses of Funds City of Fort Worth,Texas $62,220,000 General Purpose Bonds,Series 2018 (Funding$64,350,000/20 Yr.Amortization) Tax Exempt Rate as of 06/06/2018(AA+/AA+/Aa3/AA) •••Winning Bid From R.W.Baird&Co.••• Dated Date 7/10/2018 Delivery Date 7/10/2018 Sources: Bond Proceeds: Par Amount 62,220,000.00 Net Premium 2,457,690.00 64,677,690.00 Uses: Project Fund Deposits: Project Fund 64,350,000.00 Delivery Date Expenses: Cost of Issuance 327,690.00 64,677,690.00 Note: Final Jun 6,2018 10:46 am Prepared by HilltopSecurities(aml) (Finance 7.017 FORT WORTH:2018_GO2-18_GO)Page 1 iHMbopSet�tritles �xrr�ag.K BOND SUMMARY STATISTICS City of Fort Worth,Texas $62,220,000 General Purpose Bonds,Series 2018 (Funding$64,350,000/20 Yr.Amortization) Tax Exempt Rate as of 06/06/2018(AA+/AA+/Aa3/AA) ***Winning Bid From R.W.Baird&Co.*** Dated Date 07/10/2018 Delivery Date 07/10/2018 First Coupon 03/01/2019 Last Maturity 03/01/2038 Arbitrage Yield 2.935914% True Interest Cost(TIC) 3.183319% Net Interest Cost(NIC) 3.276811% All-in TIC 3.267171% Average Coupon 3.803084%. Average Life(years) 7.506 Weighted Average Maturity(years) 7.478 Duration of Issue(years) 6.169 Par Amount 62,220,000.00 Bond Proceeds 65,332,312.60 Totallnterest 17,760,382.21 Net interest 15,302,692.21 Bond Years from Dated Date 466,999,500.00 Bond Years from Delivery Date 466,999,500.00 Total Debt Service 79,980,382.21 Maximum Annual Debt Service 21,891,479.71 Average Annual Debt Service 4,071,975.34 Underwriter's Fees(per$1000) Average Takedown Other Fee 10.521096 Total Underwriter's Discount 10.521096 Bid Price 103.950000 Par Average Average PV of 1 by Bond Component Value Price Coupon Life change Serial Bond 62,220,000.00 105.002 3.803% 7.506 36,017.10 62,220,000.00 7.506 36,017.10 All-In Arbitrage TIC TIC Yield Par Value 62,220,000.00 62,220,000.00 62,220,000.00 +Accrued Interest +Premium(Discount) 3,112,312.60 3,112,312.60 3,112,312.60 Underwriter's Discount -654,622.60 -654,622.60 Cost of Issuance Expense -327,690.00 Other Amounts Target Value 64,677,690.00 64,350,000.00 65,332,312.60 Target Date 07/10/2018 07/10/2018 07/10/2018 Yield 3.183319% 3.267171% 2.935914% Jun 6,2018 11:19 am Prepared by HilltopSecurities(ami) (Finance 7.017 FORT WORTH:2018_GO2-18_GO) Page 2 4� ec: :kles4 BOND SUMMARY STATISTICS City of Fort Worth,Texas $62,220,000 General Purpose Bonds,Series 2018 (Funding$64,350,000/20 Yr.Amortization) Tax Exempt Rate as of 06/06/2018(AA+/AA+/Aa3/AA) ***Winning Bid From R.W. Baird&Co.*** Note: Final Jun 6,2018 11:19 am Prepared by Hilitop5ecurities(ami) (Finance 7.017 FORT WORTH:2018_GO2-18_60) Page 3 IIN�opSettxitles40 AI�IYli�6�y. BOND DEBT SERVICE City of Fort Worth,Texas $62,220,000 General Purpose Bonds,Series 2018 (Funding$64,350,000/20 Yr.Amortization) Tax Exempt Rate as of 06/06/2018(AA+/AA+/Aa3/AA) ***Winning Bid From R.W.Baird&Co.*** Period Ending Principal Coupon Interest Debt Service 09/30/2019 19,495,000 3.000% 2,396,479.71 21,891,479.71 09/30/2020 2,250,000 5.000% 1,714,145.00 3,964,145.00 09/30/2021 2,250,000 5.000% 1,601,645.00 3,851,645.00 09/30/2022 2,250,000 5.000% 1,489,145.00 3,739,145.00 09/30/2023 2,250,000 5.000% 1,376,645.00 3,626,645.00 09/30/2024 2,250,000 5.000% 1,264,145.00 3,514,145.00 09/30/2025 2,250,000 5.000% 1,151,645.00 3,401,645.00 09/30/2026 2,250,000 5.000% 1,039,145.00 3,289,145.00 09/30/2027 2,250,000 5.000% 926,645.00 3,176,645.00 09/30/2028 2,250,000 4.000% 825,395.00 3,075,395.00 09/30/2029 2,250,000 4.000% 735,395.00 2,985,395.00 09/30/2030 2,250,000 3.000% 656,645.00 2,906,645.00 09/30/2031 2,250,000 3.000% 589,145.00 2,839,145.00 09/30/2032 2,250,000 3.125% 520,238.75 2,770,238.75 09/30/2033 2,250,000 3.250% 448,520.00 2,698,520.00 09/30/2034 2,245,000 3.350% 374,353.75 2,619,353.75 09/30/2035 2,245,000 4.000% 291,850.00 2,536,850.00 09/30/2036 2,245,000 4.000% 202,050.00 2,447,050.00 09/30/2037 2,245,000 3.500% 117,862.50 2,362,862.50 09/30/2038 2,245,000 3.500% 39,287.50 2,284,287.50 62,220,000 17,760,382.21 79,980,382.21 Note: Final Jun 6,2018 11:19 am Prepared by HilltopSecurities(aml) (Finance 7.017 FORT WORTH:2018_GO2-18_GO) Page 4 IIl�bap5ecuritks� BOND DEBT SERVICE City of Fort Worth,Texas $62,220,000 General Purpose Bonds,Series 2018 (Funding$64,350,000/20 Yr.Amortization) Tax Exempt Rate as of 06/06/2018(AA+/AA+/Aa3/AA) ***Winning Bid From R.W. Baird&Co.*** Period Annual Ending Principal Coupon Interest Debt Service Debt Service 03/01/2019 19,495,000 3.000% 1,511,282.21 21,006,282.21 09/01/2019 885,197.50 885,197.50 09/30/2019 21,891,479.71 03/01/2020 2,250,000 5.000% 885,197.50 3,135,197.50 09/01/2020 828,947.50 828,947.50 09/30/2020 3,964,145.00 03/01/2021 2,250,000 5.000% 828,947.50 3,078,947.50 09/01/2021 772,697.50 772,697.50 09/30/2021 3,851,645.00 03/01/2022 2,250,000 5.000% 772,697.50 3,022,697.50 09/01/2022 716,447.50 716,447.50 09/30/2022 3,739,145.00 03/01/2023 2,250,000 5.000% 716,447.50 2,966,447.50 09/01/2023 660,197.50 660,197.50 09/30/2023 3,626,645.00 03/01/2024 2,250,000 5.000% 660,197.50 2,910,197.50 09/01/2024 603,947.50 603,947.50 09/30/2024 3,514,145.00 03/01/2025 2,250,000 5.000% 603,947.50 2,853,947.50 09/01/2025 547,697.50 547,697.50 09/30/2025 3,401,645.00 03/01/2026 2,250,000 5.000% 547,697.50 2,797,697.50 09/01/2026 491,447.50 491,447.50 09/30/2026 3,289,145.00 03/01/2027 2,250,000 5.000% 491,447.50 2,741,447.50 09/01/2027 435,197.50 435,197.50 09/30/2027 3,176,645.00 03/01/2028 2,250,000 4.000% 435,197.50 2,685,197.50 09/01/2028 390,197.50 390,197.50 09/30/2028 3,075,395.00 03/01/2029 2,250,000 4.000% 390,197.50 2,640,197.50 09/01/2029 345,197.50 345,197.50 09/30/2029 2,985,395.00 03/01/2030 2,250,000 3.000% 345,197.50 2,595,197.50 09/01/2030 311,447.50 311,447.50 09/30/2030 2,906,645.00 03/01/2031 2,250,000 3.000% 311,447.50 2,561,447.50. 09/01/2031 277,697.50 277,697.50 09/30/2031 2,839,145.00 03/01/2032 2,250,000 3.125% 277,697.50 2,527,697.50 09/01/2032 242,541.25 242,541.25 09/30/2032 2,770,238.75 03/01/2033 2,250,000 3.250% 242,541.25 2,492,541.25 09/01/2033 205,978.75 205,978.75 09/30/2033 2,698,520.00 03/01/2034 2,245,000 3.3505A 205,978.75 2,450,978.75 09/01/2034 168,375.00 168,375.00 09/30/2034 2,619,353.75 03/01/2035 2,245,000 4.000% 168,375.00 2,413,375.00 09/01/2035 123,475.00 123,475.00 09/30/2035 2,536,850.00 03/01/2036 2,245,000 4.0009A 123,475.00 2,368,475.00 09/01/2036 78,575.00 78,575.00 09/30/2036 2,447,050.00 03/01/2037 2,245,000 3.500% 78,575.00 2,323,575.00 Jun 6,2018 11:19 am Prepared by HilltopSecurities(aml) (Finance 7.017 FORT WORTH:2018_GO2-18_GO) Page 5 Hiif~opSeturities ANilit6p tloitliip,�ly. BOND DEBT SERVICE City of Fort Worth,Texas $62,220,000 General Purpose Bonds,Series 2018 (Funding$64,350,000/20 Yr.Amortization) Tax Exempt Rate as of 06/06/2018(AA+/AA+/Aa3/AA) ***Winning Bid From R.W.Baird&Co.*** Period Annual Ending Principal Coupon Interest Debt Service Debt Service 09/01/2037 39,287.50 39,287.50 09/30/2037 2,362,862.50 03/01/2038 2,245,000 3.500% 39,287.50 2,284,287.50 09/30/2038 2,284,287.50 62,220,000 170760,382.21 79,980,382.21 79,980,382.21 Note: Final Jun 6,2018 11:19 am Prepared by Hilltopsecurities(ami) (Finance 7.017 FORT WORTH:2018_GO2-18_GO) Page 6 ............ BOND PRICING City of Fort Worth,Texas $62,220,000 General Purpose Bonds,Series 2018 (Funding$64,350,000/20 Yr.Amortization) Tax Exempt Rate as of 06/06/2018(AA+/AA+/Aa3/AA) •••Winning Bid From R.W.Baird&Co."' ' Maturity Yield to Call Call Premium Bond Component Date Amount Rate Yield Price Maturity Date Price (-Discount) Principal Cost Serial Bond: 03/01/2019 19,495,000 3.000% 1.660% 100.850 165,707.50 19,660,707.50 03/01/2020 2,250,000 5.000% 1.790% 105.168 116,280.00 2,366,280.00 03/01/2021 2,250,000 5.000% 1.890% 107.974 179,415.00 2,429,415.00 03/01/2022 2,250,000 5.000% 1.960% 110.632 239,220.00 2,489,220.00 03/01/2023 2,250,000 5.ODO% 2.050% 112.995 292,387.50 2,542,387.50 03/01/2024 2,250,000 5.000% 2.200% 114.776 332,460.00 2,582,460.00 03/01/2025 2,250,000 5.000% 2.320% 116.405 369,112.50 2,619,112.50 03/01/2026 2,250,000 5.000% 2.480% 117.441 392,422.50 2,642,422.50 03/01/2027 2,250,000 5.000% 2.570% 118.720 421,200.00 2,671,200.00 03/01/2028 2,250,000 4.000% 2.730% 109.714 C 2.841% 03/01/2027 100.000 218,565.00 2,468,565.00 03/01/2029 2,250,000 4.000% 2.830% 108.910 C 3.015% 03/01/2027 100.000 200,475.00 2,450,475.00 03/01/2030 2,250,000 3.000% 3.000% 100.000 2,250,000.00 03/01/2031 2,250,000 3.000% 3.100% 98.958 -23,445.00 2,226,555.00 03/01/2032 2,250,000 3.125% 3.200% 99.173 -18,607.50 2,231,392.50 03/01/2033 2,250,000 3.250% 3.300% 99.420 -13,050.00 2,236,950.00 03/01/2034 2,245,000 3.350% 3.350% 100.000 2,245,000.00 03/01/2035 2,245,000 4.000% 3.250% 105.607 C 3.551% 03/01/2027 100.000 125,877.15 2,370,877.15 03/01/2036 2,245,000 4.000% 3.280% 105.376 C 3.586% 03/01/2027 100.000 120,691.20 2,365,691.20 03/01/2037 2,245,000 3.500% 3.500% 100.000 2,245,000.00 03/01/2038 2,245,000 3.500% 3.520% 99.715 -6,398.25 2,238,601.75 62,220,000 3,112,312.60 65,332,312.60 Jun 6,2018 11:19 am Prepared by HIIItopSecurities(aml) (Finance 7.017 FORT WORTH:2018_1302-18_130) Page 7 BOND PRICING City of Fort Worth,Texas $62,220,000 General Purpose Bonds,Series 2018 (Funding$64,350,000/20 Yr.Amortization) Tax Exempt Rate as of 06/06/2018(AA+/AA+/Aa3/AA) •••Winning Bid From R.W.Baird&Co.••• Dated Date 07/10/2018 Delivery Date 07/10/2018 First Coupon 03/01/2019 Par Amount 62,220,000.00 Premium 3,112,312.60 Production 65,332,312.60 105.002110% Underwriter's Discount -654,622.60 -1.052110% Purchase Price 64,677,690.00 103.950000% Accrued Interest Net Proceeds 64,677,690.00 Note:Final Jun 6,2018 11:19 am Prepared by Hilltop5ecurltles(aml) (Finance 7.017 FORT WORTH:2018 GO2.18_GO) Page 8 I'M,pSKuritles 40 AMMOKUWCOOPW COST OF ISSUANCE City of Fort Worth,Texas $62,220,000 General Purpose Bonds,Series 2018 (Funding$64,350,000/20 Yr.Amortization) Tax Exempt Rate as of 06/06/2018(AA+/AA+/Aa3/AA) ***Winning Bid From R.W.Baird&Co.*** Cost of Issuance $/1000 Amount Co-Financial Advisory Fee 1.31252 81,665.00 Co-Bond Counsel Fee 1.06831 66,470.00 Disclosure Counsel Fee 0.26734 16,634.14 Attorney General Fee 0.15268 9,500.00 Paying Agent Annual Fee 0.00643 400.00 Printing Distribution and Misc. 0.08020 4,990.24 Moody's Investors Service,Inc. 0.71514 44,496.32 Standard&Poor's 0.53469 33,268.28 Fitch O.S5340 34,432.67 Kroll 0.40102 24,951.21 Bondlinks 0.15643 9,733.20 Miscellaneous 0.01847 1,148.94 5.26663 327,690.00 Note: Final Jun 6,2018 11:19 am Prepared by HilltopSecurities(aml) (Finance 7.017 FORT WORTH:2018_GO2-18_GO) Page 9 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 6/26/2018 - Ordinance No. 23265-06-2018 DATE: Tuesday, June 26, 2018 REFERENCE NO.: **G-19311 LOG NAME: 13SERIES 2018 GPBOND APPROPRIATION ORDINANCE SUBJECT: Adopt Ordinance Appropriating $982,313.00 in the General Debt Service Fund for Cost of Issuance on the City of Fort Worth General Purpose Bonds, Series 2018 (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council adopt the attached appropriation ordinance increasing receipts and appropriations in the General Debt Service Fund in the amount of$982,313.00 for costs of issuance associated with the 2018 General Obligation Bonds sold as part of the 2014 Bond Program. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to appropriate funds for the costs of issuance associated with the previously approved General Purpose Bonds, Series 2018, which were issued as part of the City's 2014 Bond Program. On April 10, 2018, the City Council adopted the Ordinance authorizing the Issuance of City of Fort Worth, Texas General Purpose Bonds, Series 2018 (the Bonds), in an aggregate principal amount not to exceed $65,000,000.00 (M&C G-19265). Those bonds, which were sold in early June, provided $65,000,000.00 for the purpose of funding projects within the 2014 Bond Program to include (i) constructing permanent street and transportation improvements, parks, recreation and community center improvements, library system improvements, fire safety improvements, and animal care and control improvements, and (ii) paying the costs of issuance associated with the issuance of the Bonds. However, the authorizations within M&C G-19265 erroneously omitted a recommendation to adopt an appropriation ordinance increasing estimated receipts and appropriations in the General Debt Service Fund to pay cost of issuance for the bonds. The purpose of this M&C is to adopt the missing ordinance in support of the previously approved sale of the series 2018 General Purpose Bonds. 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 ordinance, funds will be available in the General Debt Service Fund to pay cost of issuance expenditures related to the issuance of the Series 2018 General Purpose Bonds. Prior to an expenditure being incurred, the participating department has the responsibility to validate the availability of funds. FUND IDENTIFIERS (FIDs): TO Logname: 13SERIES 2018 GPBOND APPROPRIATION ORDINANCE Page I of 2 Fund Department ccoun Project ctivity Budget Reference # moun ID ID �Program I Year I (Chart field 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: 13SERIES 2018 GPBOND APPROPRIATION ORDINANCE Page 2 of 2