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Home My WebLink AboutResolution 4961-08-2018 A Resolution NO. 4961-08-2018 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE HARMON ROAD 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 Harmon Road 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 $100,000.00 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 expenditure which is to be reimbursed is paid. Adopted this 71h day of August, 2018. ATTEST/.-) -= By: - '------------ Mary J. 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Adopt the attached Resolution expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt for the Harmon Road Sanitary Sewer Main Extension Project; and 2. Adopt the attached Appropriation Ordinance reducing unallocated appropriations and increasing appropriations in the Water and Sewer Commercial Paper Fund in the amount of$58,450.00 from available funds for the purpose of funding Harmon Road Sanitary Sewer Main Extension from Laughlin Road to EI Camino Drive (City Project No. 100459). DISCUSSION: This Mayor and Council Communication provides funding for project management and material testing for Harmon Road Sanitary Sewer Main Extension from Laughlin Road to EI Camino Drive. In addition, available funding in the amount of$44,450.00 will be used for an Engineering Agreement with Kimley- Horn and Associates, to prepare plans and specifications for Harmon Road Sanitary Sewer Main Extension from Laughlin Road to EI Camino Drive. The project provides for an approximate 1,600 linear feet 8-inch sanitary sewer extension within the identified limits to serve the existing Ratliff Addition and will be included in the Transportation and Public Works Department's Harmon Road (US 81/287 to Golden Triangle) Phase 1 construction project. In addition to the contract amount, $14,000.00 is required for project management and material testing. This project will have no impact on the Water Department's operating budget. 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 Logname: 60HARMONROADKHAFLJNDING Page I of 3 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 Plan on September 26, 2017. 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. The project is located in COUNCIL DISTRICT 7. 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 Water& Sewer Commercial Paper Fund for the Harmon Road Project. The Water and 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 $134,113,485.00 for future capital projects. Funding for the Harmon Road Project, funding is as depicted below: FUND Existing Additional Project Total* Appropriations Appropriations Developer Contribution Fund $12,900,000.00 $0.00 $12,900,000.00 30104 2018 Bond Program Fund $18,000,000.00 $0.00 $18,000,000.00 34018 Water & Sewer Commercial $0.00 $58,450.00 $58,450.00 Paper Fund 56016 Project Total $30,900,000.00 $58,450.00 $30,958,450.00 * Numbers rounded for presentation purposes FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project Program ctivit Budget Reference # moun ID ID Year Chartfield 2 Logname: 60HARMONROADKHAFUNDING Page 2 of 3 FROM Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year (Chartfleld 2) CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Chris Harder (5020) Additional Information Contact: John Kasavich (8480) Logname: 60HARMONROADKHAFUNDING Page 3 of 3