HomeMy WebLinkAboutOrdinance 19517-01-2011Ordinance No. 19517-01-2011
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE STATE REVOLVING DEBT SERVICE FUND IN THE AMOUNT OF $75,000.00,
AND DECREASING THE UNAUDITED, UNRESERVED, UNDESIGNATED FUND
BALANCE BY THE SAME AMOUNT FOR THE PURPOSE OF FUNDING THE
ARBITRAGE REBATE FOR WATER AND SEWER SYSTEM SUBORDINATE LIEN
REVENUE BONDS, SERIES 2005A AND 20056; 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 2010-2011 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the State
Revolving Debt Service Fund in the amount of $75,000.00, and decreasing the unaudited, unreserved,
undesignated fund balance by the same amount, for the purpose of funding the arbitrage rebate for the
Water and Sewer System Subordinate Lien Revenue Bonds, Series 2005A and 20056.
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 No.19355 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ordinances and appropriations are hereby expressly repealed.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 TO FORM AND LEGALITY:
1
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Assistant Ci Attorney
ADOPTED AND EFFECTIVE: January 25, 2011
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/25/2011 -Ordinance No. 19517-01-2011
DATE: Tuesday, January 25, 2011 REFERENCE NO.: **G-17176
LOG NAME: 1311 ARBITRAGE REBATE
SUBJECT:
Authorize Payment of Arbitrage Rebate in an Amount Not to Exceed $75,000.00 for Water and Sewer
System Subordinate Lien Revenue Bonds, Series 2005A and 20056 and Adopt Supplemental
Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize payment to the United States Treasury for arbitrage rebate in an amount not to exceed
$75,000.00; and
2. Adopt the attached supplemental appropriation ordinance increasing appropriations in the State
Revolving Debt Service Fund in an amount not to exceed $75,000.00 and decreasing the unaudited,
unreserved, undesignated fund balance by the same amount.
DISCUSSION:
This payment relates to the arbitrage rebate liability currently estimated to be $69,484.14 on the City's
$11,500,000.00 Water and Sewer System Subordinate Lien Revenue Bonds, Series 2005A and
$64,520,000.00 Water and Sewer System Subordinate Lien Revenue Bonds, Series 20056. Per Internal
Revenue Service (IRS) regulation, investment gains generated from public debt issuance with earnings
above the bond yield must be remitted to the IRS as a rebate payment. The City's investment portfolio
enjoyed yields in the 3.5 to 4 percent range for a number of years before tailing off in late 2008 while the
bond yield for these two issues is 2.95 percent, thus payment to the IRS is required.
The rebate payment for these bonds is due no later than February 14, 2011.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations
and adoption of the attached supplemental appropriation ordinance, funds will be available in the current
operating budget, as appropriated, of the State Revolving Debt Service Fund.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
PE15 552200 0132000 $75,000.00 PE15 552200 0132000
_ _ _ __
$75.000.00
CERTIFICATIONS:
Submitted for City Manag_er's Office by:
Ori inating Department Head:
Additional Information Contact:
Karen Montgomery (6222)
Lena Ellis (8517)
James Mauldin (2438)
Logname: 1311 ARBITRAGE REBATE Page 1 of 1