HomeMy WebLinkAboutOrdinance 23549-01-2019Ordinance No. 23549-01-2019
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN
THE STORMWATER UTILITY FUND IN THE AMOUNT OF $550,000.00, SUBJECT TO
THE SALE OF THE BONDS AND RECEIPT OF PROCEEDS, FOR THE PURPOSE OF
FUNDING COSTS OF ISSUANCE OF THE CITY OF FORT WORTH, TEXAS DRAINAGE
UTILITY SYSTEM REVENUE REFUNDING BONDS, SERIES 2019; 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 2018-2019 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Stormwater Utility Fund in the amount of $550,000.00, subject to the sale of the bonds and receipt of
proceeds, for the purpose of funding costs of issuance of the City of Fort Worth, Texas Drainage Utility
System Revenue Refunding Bonds, Series 2019.
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 23392-09-2018 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said prior ordinances and appropriations are hereby expressly repealed.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.
VED AS TP FORM AND LEGALITY:
Denis . McElrg� ,
Sr Assistant City Attorney
ADOPTED AND EFFECTIVE: January 29, 2019
CITY SECRETARY '---,)
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City of Fort Worth, Texas
Mayor and Council Communication
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COUNCIL ACTION: Approved on 1/29/2019 : - Ordinorce Nos. 235.4841�24,1�9
& 23550-01-2019; r x
DATE: Tuesday, January 29, 2019 REFERENCE NO.: G-19466
LOG NAME: 13SERIES 2019 STORMWATER REFUNDING BOND SALE
SUBJECT:
Adopt Ordinance Authorizing Issuance and Sale of City of Fort Worth, Texas Drainage Utility System
Revenue Refunding Bonds, Series 2019, in an Aggregate Principal Amount: Not to Exceed $33,000,000.00,
Establishing Parameters with Respect to Sale of the Bonds, Delegating to Designated City Officials
Authority to Effect Sale of the Bonds, Authorizing Escrow and Other Related Agreements, Enacting Other
Provisions Relating to the Subject, and Declaring an Immediate Effective Date, and Adopt Appropriation
Ordinances (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance (i) authorizing the issuance and sale of City of Fort Worth, Texas
Drainage Utility System Revenue Refunding Bonds, Series 2019, in an aggregate principal amount not to
exceed $33,000,000.00, (ii) approving the sale of the bonds subject to certain parameters being met, (iii)
authorizing escrow agreement related to retirement of the refunded obligations and other instruments
related to the issuance of the bonds, (iv) providing for the establishment of rates and collection of
revenues sufficient to pay the principal and interest on said bonds, (v) ordaining other matters related to
issuance and sale of the bonds, and (vi) declaring an immediate effective date;
2. Adopt the attached ordinance increasing estimated receipts and appropriations in the Stormwater
Utility Fund in the amount of $550,000.00, subject to the sale of the bonds and receipt of proceeds, for the
purpose of paying the costs of issuance; and
3. Adopt the attached ordinance increasing estimated receipts and appropriations in the Stormwater Debt
Service Fund in the amount of $35,000,000.00, subject to the sale of the bonds and receipt of proceeds,
for the purpose of funding the required escrow to refund existing debt.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to approve the issuance and sale of
refunding bonds that will allow refinancing of the existing Drainage Utility System Revenue Bonds, Series
2009 (the Series 2009 Bonds) to achieve an overall net savings on debt service.
City Staff and the City's Co -Financial Advisors, Hilltop Securities and Estrada Hinojosa, regularly monitor
the City's outstanding bonds for opportunities to refinance at lower interest rates. Based on current market
conditions for bonds that are eligible to be refinanced under current tax law, we are recommending that
the Mayor and Council refund the callable portion of the Series 2009 Bonds, with a par amount
outstanding of $33,820,000. The Series 2009 Bonds were structured with an Optional Call Provision,
which allows the City to refund/refinance the existing bonds by purchasing the outstanding bonds at a pre-
Logna ne: 13 SERIES 2019 STORMWATER REFUNDING BOND SALE Page 1 of 2
determined price, using dollars obtained from the issue of new bonds. The Optional Call Provision for the
Series 2009 bonds is any date on or after February 15, 2019.
This refunding will offer an estimated present value savings of approximately $2.2 million, or 6.5 percent of
the refunded principal amount. The actual savings amount will not be determined until the time bids are
received. However, the ordinance provides that the refunding debt shall not be sold unless the sale will
result in net present value savings of at least 3.5 percent of the par amount being refunded.
Staff is recommending that these bonds be sold through a competitive bid sale with the City Manager or
the Chief Financial Officer being authorized to approve the terms of the sale so long as it comes within the
parameters set forth in the Council -adopted ordinance, including a maximum maturity date no later than
February 15, 2035. Rating agency calls for Fitch and Standard & Poor's were conducted on January 18,
2019. Ratings are anticipated to be received January 25, 2019. Bids for the sale of the bonds are
scheduled to be submitted on or about February 7, 2019. Subsequent to accepting the best bid and
awarding the sale of the bonds, the City will seek approval of the debt transactions from the Texas
Attorney General with an estimated closing date of March 7, 2019.
Because the final amount of proceeds and issuance costs will vary slightly depending on factors such as
whether the bonds are sold at a premium, both of the attached appropriation ordinances are written to
make the appropriations subject to sale of bonds and receipt of funds. When the sale closes, final receipt
and appropriation amounts will be subject to reduction to conform to final figures reflected in the closing
documents.
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 ordinances, the sale of the 2019
Drainage Refunding Bonds will occur as required under the parameters set forth therein and that funds will
be available in the Stormwater Debt Service Fund and in the Stormwater Operating Fund to record the
appropriate and necessary transactions.
FUND IDENTIFIERS (FIDS):
TO
Fund
Department
ccoun
Project
Program
ctivity
Budget
Reference #
�mount
�mount
ID
ID
ID
Year
Chartfield 2
Year
FROM
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Susan Alanis (8180)
Kevin Gunn (2015)
Alex Laufer (2268)
Logname: 13SERIES 2019 STORMWATER REFUNDING BOND SALE Page 2 of 2
Fund
Department
ccoun
Project
Program
ctivity
Budget
Reference #
�mount
ID
ID
Year
Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Susan Alanis (8180)
Kevin Gunn (2015)
Alex Laufer (2268)
Logname: 13SERIES 2019 STORMWATER REFUNDING BOND SALE Page 2 of 2