HomeMy WebLinkAboutOrdinance 24536-11-2020 ORDINANCE NO.24536-11-2020
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE ROCK CREEK PID DEBT SERVICE FUND IN THE
AMOUNT OF $81,721.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF
REDEEMING BONDS;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 2020-2021 in the
Budget of the City Manager,there shall also be increased estimated receipts and appropriations in the Rock
Creek PID Debt Service Fund in the amount of$81,721.00,from available funds,for the purpose of funding
extraordinary optional redemption of outstanding bonds in the principal amount of$75,000.00 plus accrued
interest through redemption.
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. 24446-09-2020 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said prior ordinances and appropriations are hereby expressly repealed.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.
APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY
Assistant City Attorney Mary J.Kayser
FORT
ADOPTED AND EFFECTIVE:November 17,2020 %0
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 11/17/20 M&C FILE NUMBER: M&C 20-0857
LOG NAME: 13ROCK CREEK RANCH PID BUDGET AND RELATED MATTERS
SUBJECT
(CD 6)Approve the Fiscal Year 2021 Budget and Assessment Rolls for Fort Worth Public Improvement District No. 17-Rock Creek Ranch and
Adopt Fiscal Year 2020 and 2021 Appropriation Ordinances
RECOMMENDATION:
It is recommended that the City Council:
1. Approve the attached Fiscal Year 2021 Budget and Assessment Rolls for Fort Worth Public Improvement District No. 17-Rock Creek
Ranch;
2. Adopt the attached ordinance increasing estimated receipts and appropriations in the Fort Worth Public Improvement District 17-Rock
Creek Ranch Fund in the amount of$1,742,840.85,which consists of$1,677,000.00 in annual installment revenues and$65,840.85 in
available fund balance in the administrative expense accounts,for the purpose of establishing the fiscal year 2020-2021 operating budget;
3. Adopt the attached ordinance increasing receipts and appropriations in the Rock Creek Ranch PID Debt Service Fund in the amount of
$81,721.00,from available funds,for the purpose of redeeming bonds;and
4. Adopt the attached fiscal year 2020 appropriation ordinance making the following adjustments to receipts and appropriations in the Rock
Creek Special Assessment Capital Project Fund to reflect reallocation among projects: (i)decrease the Water Related Major Improvements
Project(City Project No. 101174)by$52,973.00, (ii)increase the Sanitary Sewer Improvements Project(City Project No. 101175)by the
same amount;(iii)decrease the University Water Improvements Project(City Project No. 101177)by$1,545.00;and(iv)increase the
University Sanitary Sewer Improvements Project(City Project No. 101179)by the same amount.
DISCUSSION:
The purpose of this Mayor and Council Communication(M&C)is to take a variety of actions associated with the budget and appropriations of Fort
Worth Public Improvement District No. 17(Rock Creek Ranch)(PID).
The Rock Creek Ranch PID was created pursuant to the PID Act(Chapter 372,Texas Local Government Code)and a resolution of the Mayor and
City Council passed on December 13,2016 to finance certain authorized improvements for the benefit of the property in the PID.Pursuant to the
PID Act,the Service and Assessment Plan for a PID must be reviewed and updated annually,and an annual budget must be established.
An initial Service and Assessment Plan(SAP)for the PID was approved by the City Council on August 15,2017 for the major improvements
(water and sewer)in both the eastern and western improvement areas of the PID and subsequently updated on June 5,2018 to include certain
roadway improvements to be provided in the western improvement area.
The SAP identified the water,sewer,and roadway improvements;the costs thereof;the indebtedness to be incurred;and the manner of assessing
the assessed property within the PID for the same. City Council approved the issuance and sale of Special Assessment Revenue Bonds,Series
2017(Fort Worth Public Improvement District No. 17—Rock Creek Ranch—Major Improvement project)in the aggregate principal amount of
$12,685,000.00 and the sale of Special Assessment Revenue Bonds,Series 2018(Fort Worth Public Improvement District No. 17—Rock Creek
Ranch—Roadway Improvement project), in the aggregate principal amount of$5,155,000.00. Each issuance of bonds include a limited amount of
proceeds allocated to capitalized interest to be used toward initial repayments on the bonds.
Annual Budget and Assessment Rolls
As noted,the above SAP must be reviewed and updated annually. In addition,an annual budget must be approved in order for billing and payment
to occur. The FY2021 budget has been finalized; however,the City and developer are currently in conversation regarding portions of the SAP
addressing the major improvements.
To ensure that assessments are billed and paid in a timely manner,staff is recommending that City Council approve the attached budgets for the
major improvement and roadway improvement annual installments(See Tables B-5 and B-6),along with the corresponding assessment rolls that
are attached(See Appendices A-1,A-2,and A-3).
As soon as the discussions regarding the SAP are concluded,an updated or amended SAP will be presented for City Council consideration. Any
updates or revisions to the SAP will not impact the FY2021 budget or assessment rolls,and the budget and assessment rolls attached to this
Mayor and Council Communication(M&C)will be incorporated into the SAP document in substantially the same form.
Approval of this M&C will establish the fiscal year 2021 budget for the Rock Creek Operating Fund and the Assessment Rolls for tax year 2020
and fiscal year 2021.
The fiscal year 2020-2021 budget for the operating fund is summarized in the table below:
Revenues
Annual Installment Income $1,677,000.00*
Use of Administrative Expense Acct Fund Balance $65,840.85
(Operating Fund)
Total Revenues** $1,742,840.85
Expenditures 11
Administrative Expenses $131,586.32
Debt Service $1,569,118.64
Deposit to Delinquency&Prepayment Reserves*** $42,135.89
Total Expenditures $1,742,840.85
*Of the FY21 annual installment income,$1,569,118.64 will be used for current year debt service payments.
**Because the debt service funds(DSF)were previously appropriated as part of the annual budget,the revenue attributable to the reserve account
in the DSF does not need to be appropriated here.
***An additional$46,659.15 has accrued in the debt service fund from income generated off of the required reserve amount. Those dollars will
also be allocated to the delinquency and prepayment account,resulting in a total of$88,795.04 available for appropriation for future use.
Other Actions
The other recommendations address appropriations to support extraordinary optional redemption of bonds as previously authorized by the City
Council(Resolution 20-1012)and adjustments as between the major improvement projects(water and sewer)to reallocate some savings on the
water project to cover overruns on the portion of the sewer project that was constructed.
The appropriation in recommendation 3 augments the debt service payment included as part of the annual debt service appropriation for the
PID. The PID received prepayments of assessments for 12-acres of donated land,and there are sufficient prepayment funds amassed to redeem
a total of$75,000 in principal of bonds-$10,000.00 of Major Improvement Bonds and$65,000.00 of Roadway Improvement Bonds-plus accrued
interest through redemption. As governed by the applicable indenture,the prepayment funds received are used to redeem bonds.As such,an
optional bond redemption is scheduled for December 1,2020,with the attached ordinance formally appropriating the funds for the redemption.
The ordinance attached for recommendation 4 reallocates water project savings to cover cost overruns in the completed sewer project for FY20
within the Rock Creek Special Assessment Capital Project Fund.Utilizing funds in this manner is allowable under the terms of section 3.2 of the
Reimbursement Agreement as approved by City Council on August 15,2017(Resolution 4830-08-2017).
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are currently available in the RCP-Major Water Imp.and the RCP-University Water Imp.projects within
the Rock Creek Spl Assessment CP Fund that upon approval of the above recommendations and adoption of appropriation ordinances,funds will
be available in the Fiscal Year 2020 and 2021 operating and capital budgets,as appropriated,in the FWPID#17-Rock Creek,Rock Creek PID
Debt Service,and Rock Creek Spl Assessment CP Funds for the RCP-Major Sanitary Sewer Imp.and the RCP-Univ.San.Sewer Imp.projects.
Prior to an expenditure being incurred,the Financial Management Services and Water Departments have the responsibility to validate the
availability of funds.
Submitted for City Manager's Office by: Jay Chapa 5804
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Alex Laufer 2268