HomeMy WebLinkAboutResolution 5238-06-2020 A Resolution
NO. 5238-06-2020
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE CFA-
TRADITION OFFSITE WATER LINE NS-3
WHEREAS, the City of Fort Worth, Texas (the "City") is a home-rule
municipality and political subdivision of the State of Texas; and
WHEREAS, the City expects to pay expenditures in connection with the design,
planning, acquisition and construction for the CFA-Tradition Offsite Water Line NS-
3 Project (the "Project") prior to the issuance of obligations by the City in connection
with the financing of the Project from available funds; and
WHEREAS, the City finds, considers, and declares that the
reimbursement of the City for the payment 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 Treasury Regulations, to reimburse
itself for such payments at such time as it issues obligations to finance
the Project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT:
Section 1. The City reasonably expects debt, as one or more series of
obligations, may be issued or incurred by the City with an aggregate maximum
principal amount not to exceed $7,700,000.00 for the purpose of paying the
aggregate costs of the Project.
Section 2. All costs to be reimbursed pursuant hereto will be capital
expenditures. No obligations will be issued by the City in furtherance of this
Statement after a date which is later than 18 months after the later of (1) the
date the expenditures are paid or (2) the date on which the property, with
respect to which such expenditures were made, is placed in service.
Section 3. The foregoing notwithstanding, no obligation will be issued
pursuant to this Statement more than three years after the date any
expenditure which is to be reimbursed is paid.
Adopted this 4th day of June 2020.
ATTEST: �OF.FORr�
B y:
Mary J. Kayser, City Secretary
l,�s
City of Fort Worth,Texas
Mayor and Council Communication
DATE: 06/02/20 M&C FILE NUMBER: M&C 20-0381
LOG NAME: 60AMEND TRADITION NS3 OFFSITE WATER
SUBJECT
Amend Mayor and Council Communication 20-0345 to Adopt Resolution Expressing Intent to Reimburse Expenditures with Proceeds of Future
Revenue Bond Issuance for the Water and Sewer Fund for City Participation in a Community Facilities Agreement with HT HWY 114 Development
LP for the Water Mains Serving the Tradition Central Development and Anticipated Future Growth in North Fort Worth(COUNCIL DISTRICT 7)
RECOMMtNUAT►ON:
it is recommended that the City Council amend Mayor and Council Communication 20-0345 to adopt the attached Resolution expressing intent to
reimburse expenditures with proceeds of future debt for city participation in a community facilities agreement with HT HWY 114 Development LP
for the water mains serving the Tradition Central Development and anticipated future growth in North Fort Worth
DISCUSSION:
The purpose of this Mayor and Council Communication(M&C)is to amend M&C 20-0345 to adopt the attached supplemental Resolution
Expressing Intent to Reimburse Expenditures With Proceeds of Future Debt(Resolution).The Reinbursment Resolution was inadvertently omitted
as an attachment to M&C 20-0345.
This project is anticipated to be included in a future revenue bond issue for the Water and Sewer Fund.Available cash within the Water and Sewer
portfolio and the City's portfolio along with the appropriation authority authorized under the Callable Commercial Paper Program(CP)will be used
to provide interim financing for this this project until debt is issued.To the extent resources other than the Water and Sewer portfolio are used to
provide interim financing,the Water and Sewer Fund will be charged interest that is equivalent to the overall rate of return being earned by the City
portfolio(currently approximately 2.3 percent annually).Should the City's portfolio not support the liquidity needed to provide an interim short-term
financing source,another funding source will be required,which could mean issuance of securities under the CP Program or earlier issuance of
Water and Sewer revenue bonds than is currently planned.Once debt associated with this project is sold,bond proceeds will be used to reimburse
the Water and Sewer portfolio and the City's portfolio in accordance with the attached Reimbursement Resolution.
The City Council approved the Water Department's Fiscal Year 2020-2024 Five Year Capital Improvement Plan on September 17,2019.This City
Council adopted plan includes this specific project,with funding identified through the CP program to be reimbursed with future revenue bonds.In
accordance with the provisions of the Financial Management Policy Statement,Staff anticipates presenting revenue-supported debt issuances to
the City Council for consideration within the next three years.This debt must be issued within approximately three years to provide reimbursement
for these expenses.If that does not occur,the costs will no longer be reimbursable by issuing tax-exempt debt and the funding source will have to
be made whole through budgetary methods.Adoption of this resolution does not obligate the City to sell bonds,but preserves the ability to
reimburse the City from tax-exempt bond proceeds.
This development is located in Council District 7.
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity_
rist.;AL INt-ORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendation and adoption of the attached Resolution expressing intent to
reimburse expenditures with proceeds of future debt transferred from funds will be available in the Water and Sewer Capital Project 2020A(WS
Capital Project 2020A)Fund Tradition NS3 Offsite Project.Prior to any expenditure being incurred,the Water Department has the responsibility to
validate the availability of funds.
Submitted for City Manager's Office by: Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Soon Wong 8369