HomeMy WebLinkAboutOrdinance 19800-07-2011Ordinance No.19800 -07 -2011
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE STATE REVOLVING DEBT SERVICE FUND IN THE
AMOUNT OF $4,740,000.00, AND DECREASING THE UNAUDITED,
UNRESERVED, UNDESIGNATED FUND BALANCE BY THE SAME AMOUNT,
FOR THE CASH DEFEASANCE OF ALL OUTSTANDING MATURITIES OF THE
CITY OF FORT WORTH, TEXAS, WATER AND SEWER SYSTEM
SUBORDINATE LIEN REVENUE BONDS, SERIES 2001; 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 $4,740,000.00and
decreasing unaudited, unreserved, undesignated fund balance by the same amount for the cash
defeasance of all outstanding maturities of the City of Fort Worth, Texas, Water and Sewer System
Subordinate Lien Revenue Bonds, Series 2001.
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conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 0 FO AND LEGALITY:
Assistant Cit ttorney
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 WATER AND SEWER SYSTEM SUBORDINATE
LIEN REVENUE BONDS, SERIES 2001, all obligations maturing on March 1 in each of the
years 2012 through 2021, aggregating $4,740,000 in principal amount; REDEMPTION DATE:
2011.
Maturit y Date
Principal Amount
Interest Rate CUSIP
03/01/2012
$395,000
3.50%
03/01/2013
$410,000
3.60%
03/01/2014
$425,000
3.70%
03/01/2015
$445,000
3.80%
03/01/2016
$460,000
3.90%
03/01/2017
$480,000
3.95%
03/01/2018
$500,000
4.00%
03/01/2019
$520,000
4.05%
03/01/2020
$540,000
4.10%
03/01/2021
$565,000
4.15%
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 /Registered /Certified
Wells Fargo Bank, N.A.
Corporate Trust Operations
MAC N9303 -121
P.O. Box 1517
Minneapolis, MN 55480
Express Delivery Only
Wells Fargo Bank, N.A.
Corporate Trust Operations
12th Floor
MAC N9303 -121.
6th and Marquette Avenue
Minneapolis, MN
By Hand Only
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 7/26/2011 •Ordinance No. 19800 & Resolution No. 4011
DATE: Tuesday, July 26, 2011 REFERENCE NO.: G -17336
LOG NAME: 1311 WATER DEFEASANCE
SUBJECT:
Adopt a Resolution Authorizing the Cash Defeasance of All Outstanding Maturities of the City of Fort
Worth, Texas, Water and Sewer System Subordinate Lien Revenue Bonds, Series 2001 from Unreserved,
Undesignated Fund Balance in the State Revolving Debt Service Fund in the Principal Amount of
$4,740,000.00 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 State
Revolving Debt Service Fund in the amount of $4,740,000.00 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 the City
of Fort Worth, Texas, Water and Sewer System Subordinate Lien Revenue Bonds, Series 2001.
DISCUSSION:
On January 23, 2001, the City Council authorized the issuance and sale of $8,080,000.00 of the City of
Fort Worth, Texas, Water and Sewer System Subordinate Lien Revenue Bonds, Series 2001 (M &C G-
13137). After ten years of debt service, $4,740,000.00 of principal remains and is callable as of
September 1, 2011. Staff recommends utilizing available State Revolving Debt Service Fund balance to
defease the remaining outstanding debt.
In addition to reducing the Water Department's debt load, defeasing this debt utilizing cash balances
would result in savings of approximately $1,000,000.00.
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 State Revolving Debt Service Fund.
FUND CENTERS:
TO Fund /Account/Centers
FROM-Fund/Account/Centers
1)-PE15 551010 0132000 $4 740000.00 2) PE15 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)
$4.740,000.00
Logname: 1311 WATER DEFEASANCE Page 1 of 1