HomeMy WebLinkAboutOrdinance 23651-05-2019Ordinance No, 23651-05-2019
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN
THE 2019 TAX NOTE PROJECT FUND IN THE AMOUNT OF $9,725,000,00, SUBJECT
TO THE SALE OF NOTES AND RECEIPT OF PROCEEDS, FOR PURPOSES OF
PAYING COSTS OF PROJECTS IDENTIFIED IN THE ORDINANCE AUTHORIZING THE
NOTES AND PAYING COSTS OF ISSUANCE FOR THE NOTES, WITH SUCH
AMOUNTS SUBJECT TO REDUCTION TO CONFORM TO FINAL FIGURES
REFLECTED IN NOTE CLOSING DOCUMENTS; 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 2019
Fax Note Project Fund in the amount of $9,725,000.00 subject to sale of notes and receipt of proceeds, for
the purpose of paying costs of projects identified in the ordinance authorizing issuance of the notes and
paying costs of issuance of the notes, with such amounts subject to reduction to conform to the final figures
reflected in the note closing documents.
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said prior ordinances and appropriations are hereby expressly repealed.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.
...,4r�PPROVED AS TO FORM AND LEGALITY:
Denis C' IVIcEIro�, �ssistant City Attorney
ADOPTED AND EFFECTIVE: May 7, 2019
CITY SECRET
City of Fort Worth, Texas
T„r, i
DATE: Tuesday, May 7, 2019
LOG NAME: 132019 TAX NOTES
unication
REFERENCE NO.: G-19529
SUBJECT:
Adopt Ordinance Authorizing Issuance of Tax Notes in an Aggregate Principal Amount Not to Exceed
$9,725,000.00, Approving Sale of the Notes, Establishing Parameters with Respect to Sale of the Notes,
Delegating to Designated City Officials Authority to Effect Sale of the Notes, Enacting Other Provisions
Related to the Subject, and Declaring an Immediate Effective Date; and Adopt Appropriation Ordinance
(ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance authorizing the issuance and approving sale of 2019 Tax Notes in an
aggregate principal amount not to exceed $9,725,000; authorizing execution of all related documents;
and approving the sale of the notes subject to certain parameters, as set forth in the ordinance, being met,
including providing for levy, assessment and collection of a property tax sufficient to pay the interest on
and principal of the notes if other revenues are not otherwise available and appropriated for those
payments; and
2. Adopt the attached ordinance increasing estimated receipts and appropriations in the 2019 Tax Note
Project Fund iri the amount of $9,725,000, for the purpose of paying (I) contractual obligations incurred or
to be incurred for the construction of identified public works and the purchase of materials, supplies,
equipment, machinery, buildings, lands, and rights -of -way, and (ii) costs of issuance of the notes, with
appropriations subject to the sale of tax notes and receipt of proceeds and all identified amounts being
subject to reduction to conform to final figures reflected in note -closing documents.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take actions associated with the
issuance and sale of Series 2019 tax notes and appropriation of proceeds for the purpose of paying (i)
costs related to certain capital projects, and (ii) costs of issuance of the notes. Proceeds from the sale of
the tax notes will be used to purchase of fire equipment and transportation and public works equipment
and to pay the cost of issuance.
The Equipment Note Program for the City's Fire Department was established on February 9, 1999,
through the adoption of Ordinance No. 13701. Under the program, on an annual recurring basis, tax
notes are sold on the open market under a competitive process and proceeds are used to finance the
equipment replacement program for fire equipment and apparatus. In conjunction with the Fleet
Management Division of the Property Management Department, the Fire Department manages a fleet
rotation plan that annually identifies vehicles and equipment that have reached their useful lives and are
too old or costly to continue to utilize or maintain for public safety operations. A portion of the proceeds
from sale of the notes will be used to acquire equipment replacements scheduled for Fiscal Year 2019.
Logname: 132019 TAX NOTES Page 1 of 2
The remaining proceeds will be used to pay for (i) a portion of the costs associated with a haul truck and
trailer and milling machine for the Transportation and Public Works Department, and (ii) the cost of
issuance.
Staff is recommending that these notes be sold through a competitive sale with identified city
representatives being authorized to approve the terms of the sale so long as it comes within the
parameters set forth in the Council -adopted ordinance. Key parameters include providing for levy,
assessment and collection of a tax sufficient to pay the interest on and principal of the notes if other
revenues are not otherwise available and appropriated for those payments. Additionally, the bonds are
structured with a 7 year term to comply with state law.
Rating agency presentations for Moody's, Fitch, Standard & Poor's, and Kroll will be conducted in late
April and early May of 2019. Ratings are anticipated to be received in Mid -May. Bids for the sale of the
notes are estimated to be submitted on June 11, 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 July 16, 2019.
The attached appropriation ordinance reflects the maximum appropriation amount for note proceeds. Its
structure accommodates variables associated with sale of debt under delegated authority such as the
uncertain final interest rate to be achieved and the possibility of a premium or discount being associated
with the sale of the notes. To the extent numbers at closing are less than those reflected in the ordinance,
the available appropriation amount will be reduced as needed to reflect final figures based on the closing
documents to ensure appropriations do not exceed actuals.
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 Tax
Notes will occur as required under the parameters set forth therein and that funds will be available in the
General Debt Service Fund to repay the debt when due and payable. Further, the 2019 Tax Note Fund
will be established and appropriations recorded.
FUND IDENTIFIERS (FIDs):
and Department ccoun Project Program ctivity Budget Reference #
ID ID Year � (Chartfield 21
and Department ccoun Project Program ctivity Budget Reference #
__ _
ID ___ ID i Year (Chartfield 2!
CERTIFICATIONS:
Submitted for City Manager's Office bv•
Originating Department Head•
Additional Information Contact:
Susan Alanis (8180)
Kevin Gunn (2015)
Alex Laufer (2268)
Logname: 132019 TAX NOTES
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