HomeMy WebLinkAboutOrdinance 19799-07-2011Ordinance No. 19799
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GENERAL DEBT SERVICE FUND IN THE AMOUNT
OF $9,120,000.00, AND DECREASING THE UNAUDITED, UNRESERVED,
UNDESIGNATED FUND BALANCE BY THE SAME AMOUNT, FOR THE CASH
DEFEASANCE OF CERTAIN TAX- SUPPORTED DEBT; 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 General Debt Service Fund in the amount of $9,120,000.00 and decreasing
unaudited, unreserved, undesignated fund balance by the same amount for the cash defeasance of
certain tax - supported debt including General Purpose Refunding and Improvement Bonds, Series
2001 in the amount of $2,400,000.00, Combination Tax and Revenue Certificates of Obligation,
Series 2001 in the amount of $5,700,000.00 and General Purpose Bonds, Series 2001A in the
amount of $1,020,000.00.
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conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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:
i
Assistant C ty Attorney
ADOPTED AND EFFECTIVE: July 26. 2011
NOTICE OF REDEMPTION
CITY OF FORT WORTH, TEXAS
Notice is hereby given that the following obligations issued by the City of Fort Worth, Texas (the "City ")
are called for redemption prior to their scheduled maturities on the dates and at the redemption price of par plus
accrued interest to the redemption date:
CITY OF FORT WORTH, TEXAS GENERAL PURPOSE REFUNDING AND
IMPROVEMENT BONDS, SERIFS 2001, all obligations maturing on March 1 in each of the
years 2018 and 2021, aggregating $2,400,000 in principal amount; REDEMPTION DATE:
2011.
Maturity Date Principal Amount Interest Rate CUSIP
03/01/2018 $1,200,000 5.10%
03/01/2021 $1,200,000 5.25%
CITY OF FORT WORTH, TEXAS COMBINATION TAX AND REVENUE
CERTIFICATES OF OBLIGATION, SERIES 2001, all obligations maturing on March 1,
2021, aggregating $1,020,000 in principal amount; REDEMPTION DATE: , 2011.
Maturity Date Principal Amount Interest Rate CUSIP
03/01/2021 $1,020,000 5.25%
CITY OF FORT WORTH, TEXAS GENERAL PURPOSE BONDS, SERIES 2001A, all
obligations maturing on March 1 in each of the years 2012 through 2021, aggregating $4,740,000
in principal amount; REDEMPTION DATE: , 2011.
Maturity Date
03/01/2016
03/01/2017
03/01/2018
03/01/2019
03/01/2020
03/01/2021
Principal Amount
$950,000
$950,000
$950,000
$950,000
$950,000
$950,000
Interest Rate CUSIP
4.75%
4.75%
4.75%
4.75%
4.75%
4.75%
Due provision for the payment of the above - described obligations has been made with Wells
Fargo Bank, N.A. ( "Wells Fargo'), the paying agent for said obligations, and said obligations shall be
presented for payment either in person or by mail, at the following addresses:
First Class /ReQistered/Certifted
Wells Fargo Bank, N.A.
Corporate Trust Operations
MAC N9303 -121
P.O. Box 1517
Minneapolis, MN 55480
Express Delivery 0n1v
Wells Fargo Bank, N.A.
Corporate Trust Operations
12th Floor
MAC N9303 -121.
6th and Marquette Avenue
Minneapolis, MN
By Hand 0n1v
Northstar East Building
Corporate Trust Operations
608 2nd Avenue South
Minneapolis, MN
Interest on the redeemed obligations shall cease to accrue thereon after the redemption date.
CUSIP numbers have been assigned to this issue by the CUSIP Service Bureau and are included solely for
the convenience of the Bondholder. Neither the City nor Wells Fargo shall be responsible for the selection or
correctness of the CUSIP numbers on the obligations or as indicated in any redemption notice.
IMPORTANT NOTICE: Under the provisions of the Jobs and Growth Tax Relief Reconciliation Act of
2003 (the "Act'), paying agents making payments of interest or principal on municipal securities may be obligated
to withhold a 28% tax from remittance to individuals who have failed to furnish the paying agent with a valid
taxpayer identification number. Owners of the Bonds who wish to avoid the imposition of the tax should submit
certified taxpayer identification numbers when presenting the Bonds for payment.
2, 2011. THIS NOTICE is given under authority of a resolution adopted by the City Council of the City on August
City of Fort Worth, Texas
Mayor and Council Communication
`COUNCIL. ACTION: Approved on 712612011! • Ordinance No; 19799 & Resolution No. 4010:
DATE: Tuesday, July 26, 2011
LOG NAME: 1311 GO DEFEASANCE
REFERENCE NO.: G -17335
SUBJECT:
Adopt Resolution Authorizing the Cash Defeasance of Certain Tax Supported Debt from Unreserved,
Undesignated Fund Balance in the General Debt Service Fund in the Principal Amount of $9,120,000.00
and Adopt Supplemental Appropriation Ordinance (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached supplemental appropriation ordinance increasing appropriations in the General Debt
Service Fund in the amount of $9,120,000.00 and decreasing unaudited, unreserved, undesignated fund
balance by the same amount; and
2. Adopt the attached resolution authorizing the cash defeasance of all outstanding maturities of certain
tax - supported debt.
DISCUSSION:
The following group of outstanding tax - supported bonds have been identified as candidates for cash
defeasance utilizing fund balance in the General Debt Service Fund.
General Purpose Refunding and 1$2,400,000.00
Improvement Bonds, Series 2001
Combination Tax and Revenue ;$5,700,000.00
Certificates of Obligation, Series 2001
General Purpose Bonds, Series 2001A ;$1,020,000.00
Total '''$9,120,000.00
........___. _.._.....
All identified bonds are currently callable. In addition to increasing the City's debt capacity, defeasing this
debt utilizing cash balances would result in savings in excess of $3,000,000.00.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations
and the adoption of the attached resolution and supplemental appropriation ordinance, funds will be
available in the current operating budget, as appropriated, of the General Debt Service Fund.
FUND CENTERS:
TO Fund /Account/Centers
Logname: 1311 GO DEFEASANCE
FROM Fund /Account/Centers
Page 1 of 2
1) GD06 551010 0132000 $9,120,000.00 2) GD06 551010 0132000
CERTIFICATIONS:
Submitted for City Manager's Office by: Karen Montgomery (6222)
Originating Department Head:
Additional Information Contact:
Lena Ellis (8517)
James Mauldin (2438)
$9,120,000.00
Logname: 1311 GO DEFEASANCE Page 2 of 2