HomeMy WebLinkAboutOrdinance 17703-08-2007Ordinance No. 17703-08-2007
AN ORDINANCE INCREASING APPROPRIATIONS IN THE DEBT SERVICE
FUND IN THE AMOUNT OF $48,000,000 AND DECREASING UNRESERVED,
UNDESIGNATED FUND BALANCE BY THE SAME AMOUNT, FOR THE
PURPOSE OF FUNDING THE DEFEASANCE OF CERTAIN TAX SUPPORTED
DEBT; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR 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 2006-
2007 in the Budget of the City Manager, there shall also be increased appropriations in the Debt
Service Fund in the amount of $48,000,000 and decreasing unreserved, undesignated fund
balance by the same amount, for the purpose funding the defeasance of certain tax supported debt.
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 No. 17142 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conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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.
APPR VEDAS TO F RM AND LEGALITY:
Assistant City Attorney
ADOPTED AND EFFECTIVE: August 14, 2007
City of Fort I~/or~th, Texas
Mayor and Council Communication
_ _~~ T
COUNCIL ACTION: Approved on 8/14/2007 -Resolution # 3514-08-2007 & Ordinance #17703-
08-2007
DATE: Tuesday, August 14, 2007
LOG NAME: 13DEBTDEFEASANC
REFERENCE NO.: G-15827
SUBJECT:
Adopt Resolution Authorizing the Cash Defeasance of Certain Tax Supported Debt and Authorize
Execution of Related Escrow Agreement with Wells Fargo Bank, N. A. and Adopt Supplemental
Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached supplemental appropriation ordinance increasing appropriations in the Debt Service
Fund in the amount of $48,000,000 and decreasing unreserved, undesignated fund balance by the same
amount;
2. Adopt the attached resolution authorizing the defeasance of certain tax supported debt; and
3. Authorize the City Manager to execute an Escrow Agreement with Wells Fargo Bank, N. A. to serve as
paying agent in effectuating the recommended debt defeasance, subject to any non-material changes that
may be acceptable to the City Attorney.
DISCUSSION:
The defeasance of certain tax supported debt was included in upcoming debt issues presented to Council
during the budget presentation on June 15 and 16, and again on July 10, 2007. Staff proposes utilizing
excess debt service fund balance to defease approximately $48,000,000 in outstanding tax supported
debt. This action will provide additional capacity for new debt related to current capital needs. The
defeasance amount is based on Fiscal Year 2006 ending fund balance and Fiscal Year 2007 estimated
excess revenues.
The $48,000,000 appropriated under the attached ordinance will be deposited into an escrow account with
Wells Fargo Bank, N. A., which will act as paying agent for the City in discharging the debt covered by the
attached Escrow Agreement.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendations, contingent upon FY2007
excess overage of $7M, and the adoption of the attached supplemental appropriation ordinance, funds will
Logname: 13DEBTDEFEASANC Page 1 of 2
be available in the current operating budget, as appropriated, of the Debt Service Fund.
TO Fund/AccountlCenters FROM Fund/Account/Centers
GD06 551010 0132000 $48,000,000.00 GD06 551010 0132000 $48,000,000.00
Submitted for City Manager's Office by: Karen Montgomery (6222)
Originating Department Head: Lena Ellis (8517)
Additional Information Contact: Mae Gray-Rossi (8325)
Logname: 13DEBTDEFEASANC Page 2 of 2