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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10245
March 5, 2019
To the Mayor and Members of the City Council
Page 1 of 2
SUBJECT: NEW CONTINUING DISCLOSURE AGREEMENT
WITH TRINITY RIVER AUTHORITY
This informal report is intended to provide the Mayor and City Council with a summary of the
recently effective changes to federal rules governing disclosure of information related to municipal
debt, changes which prompted an update to the continuing disclosure agreement with
Trinity River Authority (TRA).
Summary
Periodically, the City, on behalf of its Water and Sewer System enters into agreements with
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and Sewer System. An example of such agreements includes financing the construction of offsite
water and sewer mains for the Sendera Ranch Development (M&C C-19112). In that transaction,
the TRA agreed to provide financing for the design and construction of the water and sewer
infrastructure since the development is located in the TRA service area served by the Denton
Creek Wastewater Treatment Plant. The agreement provided for the TRA to issue bonds payable
from and secured by payments made by the City, sufficient to fund the
are the revenue source that is pledged to pay the debt issued by the TRA. This structure makes
the City an obligated party with respect to those TRA bonds and subjects the City to certain
continuing disclosure obligations.
In 1996, the City entered into a continuing disclosure agreement with TRA (M&C G-11388) in
order to maintain compliance with general rules provided by the Federal Securities Exchange
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Commission (SEC). On August 15, 2018, the SEC adopted amendments to enhance
transparency in the municipal securities market. The adopted amendments to Rule 15c2-12 of the
Securities Exchange Act will focus on m
new types of events for which disclosure is required under the rule:
Incurrence of a financial obligation of the \[issuer or other\] obligated person, if material, or
agreement to covenants, events of default, remedies, priority rights, or other similar terms
of a financial obligation of the \[issuer or other\] obligated person, any of which affect
security holders, if material.
Default, event of acceleration, termination event, modification of terms, or other similar
events under the terms of a financial obligation of the \[issuer or other\] obligated person,
any of which reflect financial difficulties.
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The amendments are effective as of February 27, 2019, and TRA has requested the new
continuing disclosure agreement be executed no later than the end of March so that it is in place
before the authority issues debt this spring.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10245
March 5, 2019
To the Mayor and Members of the City Council
Page 2 of 2
SUBJECT: NEW CONTINUING DISCLOSURE AGREEMENT
WITH TRINITY RIVER AUTHORITY
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March 19 Resolution to Continuing Disclosure Agreement with TRA
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On March 19, the City finance team plans to present Mayor and Council with a proposed
resolution authorizing a new continuing disclosure agreement that will incorporate the newly
adopted SEC amendments to rule 15c2-12.
If you have any questions, please call Kevin Gunn, Interim Chief Financial Officer, at 817-392-
8500.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS