HomeMy WebLinkAboutOrdinance 20276-07-2012ORDINANCE NO. 20276-07-2012
DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE
COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION;
AND ORDAINING OTHER MATTERS RELATING TO THE SUBJECT
WHEREAS, the City of Fort Worth expects to pay expenditures in connection with the
design, planning, acquisition and construction of the projects described in Exhibit A to this
Ordinance prior to the issuance of the Certificates of Obligation hereinafter described; and
WHEREAS, the City Council hereby finds, considers and declares that the
reimbursement of the payment by the City of such expenditures will be appropriate and
consistent with the lawful objectives of the City and, as such, chooses to declare its intention, in
accordance with the provisions of Section 1.150 -2 of the U.S. Treasury Regulations, to
reimburse itself for such payments at such time as it issues the hereinafter described Certificates
of Obligation; and
WHEREAS, it is hereby officially found and determined that the meeting at which this
Ordinance was considered was open to the public, and public notice of the time, place and
purpose of said meeting was given, all as required by Chapter 551, Texas Government Code.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
Section 1. That attached hereto and marked "Exhibit A" is a form of notice, the form and
substance of which are hereby passed and approved.
Section 2. That the City Manager shall cause said notice to be published, in substantially
the form attached hereto, in a newspaper of general circulation in the City of Fort Worth, Texas,
for two consecutive weeks, the date of the first publication to be before the thirtieth (30th) day
before the day tentatively proposed for authorizing the issuance of the Certificates of Obligation
as shown in said notice.
Section 3. That the facilities and improvements to be financed with proceeds from the
proposed Certificates of Obligation are to be used for the purposes described in the attached
Notice of Intention.
Section 4. That all costs to be reimbursed pursuant to this Ordinance will be capital
expenditures; the proposed Certificates of Obligation shall be issued within 18 months of the
later of (i) the date the expenditures are paid or (ii) the date on which the property, with respect
to which such expenditures were made, is placed in service; and the foregoing notwithstanding,
the Certificates of Obligation will not be issued pursuant to this Ordinance on a date that is more
than three years after the date any expenditure which is to be reimbursed is paid.
Ordinance No. 20276 -07 -2012
Page 1 of 4
Section 5. That this Ordinance shall be effective immediately from and after its passage
in accordance with the provisions of Section 2 of Chapter 25 of the Charter of the City, and it is
accordingly so ordained.
PASSED AND APPROVED this the 10th day of July, 2012.
ayor, CiWofKrt Worth, Texas
APPROVED AS TO FORM:
City �6, to y, City of
Fort Texas
ATTEST:
(SEAL)
City Secretary
Fort Worth, T�
Signature Page — Ordinance Authorizing Publication of Notice of Intent to Issue Certificates of Obligation
Ordinance No. 20276 -07 -2012
Page 2 of 4
EXHIBIT A
NOTICE OF INTENTION TO ISSUE
COMBINATION TAX AND REVENUE
CERTIFICATES OF OBLIGATION
NOTICE IS HEREBY GIVEN that it is the intention of the City Council of the City of
Fort Worth, Texas, to issue one or more series of the interest bearing certificates of obligation of
the City to be entitled "City of Fort Worth, Texas Combination Tax and Revenue Certificates of
Obligation ", for the purpose of paying contractual obligations to be incurred by the City, to -wit,
the design, construction and equipping of a police /fire training facility located at 501 West Felix
Street, in the City of Fort Worth; the purchase of equipment for use by the City's fire
department; the construction and reconstruction of streets, arterial and freeway interchanges
throughout the City, and the construction of water, wastewater and stormwater improvements in
respect to such construction and reconstruction of streets, arterial and freeway interchanges; the
purchase of traffic and public safety signals for installation throughout the City; public art
relating to the construction and reconstruction of streets, arterials and freeway interchanges
throughout the City; the acquisition and construction of a telecommunications tower in support
of public safety and 911 communications operated by the City; and the payment of fiscal,
engineering and legal fees incurred in connection therewith. The City Council tentatively
proposes to authorize the issuance of said series (one or more) of Certificates of Obligation at its
regular meeting place in the City Hall at a meeting to commence at 7:00 o'clock, p.m., on the
14th day of August, 2012. The maximum amount of Certificates of Obligation indebtedness that
may be authorized to be sold on said date for such purposes described above is $105,000,000.
The City Council presently proposes to provide for payment of said series (one or more) of
Certificates of Obligation from the levy of ad valorem taxes and from a limited pledge (not to
exceed $1,000) of surplus revenues derived from the operation of the City's water and sewer
system.
CITY OF FORT WORTH, TEXAS
/s/ Betsy Price
Mayor
Ordinance No. 20276 -07 -2012
Page 3 of 4
THE STATE OF TEXAS
COUNTIES OF TARRANT, DENTON PARKER AND WISE
CITY OF FORT WORTH
I, Mary J. Kayser, City Secretary of the City of Fort Worth, in the State of Texas, do
hereby certify that I have compared the attached and foregoing excerpt from the minutes of the
regular, open, public meeting of the City Council of the City of Fort Worth, Texas held on July
10, 2012, and of the ordinance authorizing the publication of notice of intention to issue
Certificates of Obligation, which was duly passed at said meeting, and that said copy is a true
and correct copy of said excerpt and the whole of said ordinance. Said meeting was open to the
public, and public notice of the time, place, and purpose of said meeting was given, all as
required by Chapter 551, Texas Government Code, as amended.
In testimony whereof, I have set my hand and have hereunto affi d the seal of said City
of Fort Worth, this 10th day of July, 2012.
City of Fort Wbfth, Texas
(SEAL)
Ordinance No. 20276 -07 -2012
Page 4 of 4
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/1012012 - Ordinance Noi 20276 - 07.2012,
DATE: Tuesday, July 10, 2012 REFERENCE NO.: G -17623
LOG NAME: 1312 CO NOI
SUBJECT:
Adopt Ordinance Directing Publication of Notice of Intention to Issue Combination Tax and Revenue
Certificates of Obligation in the Amount Not to Exceed $105,000,000.00 and Authorize the Proceeds to Be
Used for Critical Capital Needs, Cost Over -Runs from the 2004 Bond Program, the Public Safety Training
Center and the Acquisition of Fire Equipment (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance, which directs publication of notice of the City's intention to issue
Combination Tax and Revenue Certificates of Obligation, Series 2012 in the amount not to exceed
$105,000,000.00;
2. Approve the form of notice marked "Exhibit A" attached to the ordinance;
3. Authorize the City Manager to cause said notice to be published, in substantially the form attached
hereto, in a newspaper of general circulation in the City of Fort Worth, Texas, for two consecutive weeks,
the date of the first publication to be prior to the thirtieth day before the day tentatively proposed for
authorizing the issuance of the Certificates of Obligation as shown in said notice; and
4. Authorize the proceeds to be used for Critical Capital needs, cost over -runs from the 2004 Bond
Program, the Public Safety Training Center and the acquisition of fire equipment as described in the
attached Notice of Intention.
DISCUSSION:
Under the laws of the State of Texas, the City Council has the authority to issue Certificates of Obligation
(C.O.$), a form of debt, without explicit prior voter approval. The City, however, has established financial
policies governing the issuance of such debt. C.O.s may only be used to finance public improvements in
special circumstances and only after determining the City's ability to assume additional debt. These
criteria include situations where it would be more economical to issue C.O.s rather than revenue bonds
and where the timing of the construction of a capital improvement and the expense of calling a bond
election for a single proposition would, in the opinion of Staff and with the approval of the Council, warrant
the issuance of C.O.s to finance the capital improvement.
The proposed projects described in the attached Notice of Intention qualify for C.O. financing. The
maximum amount of the C.O.s sold shall not exceed the amount of $105,000,000.00.
Police and Fire Training Facility 1 $ 77,000,000
Logname: 1312 CO NOI Page I of 2
12007 Critical Capital Program 1
1 $ 10,243,000
2004 Bond Program Cost
Overruns
$2,829,807
Fire Equipment
r $ 4,000,000
Bond Issuance Cost and
$ 10,927,193
Contingency
Total Certificates of Obligation
$ 105,000,000
Upon City Council approval, the City Manager shall publish the initial Notice of Intention no later than July
14, 2012. The second Notice of Intention will be published the same day of the week following the first
notice.
The City Council will be asked to approve the sale of the C.O.s and adopt the related ordinance on August
14, 2012. The C.O.s are intended to be sold on a competitive basis. It is anticipated that the closing and
delivery of the C.O. funds will occur on Septemer 18, 2012.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that funds will be available upon completion of the
sale, closing and delivery of the Combination Tax and Revenue Certificates of Obligation, Series 2012 for
the projects.
FUND CENTERS:
TO Fund /Account/Centers
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
FROM Fund /Account/Centers
Susan Alanis (8180)
Lena Ellis (8517)
James Mauldin (2438)
Logname: 1312 CO NOI Page 2 of 2