HomeMy WebLinkAboutOrdinance 24800-04-2021ORDINANCE NO. 24800-04-2021
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE TRINITY LAKES CO 2021 PROJECT FUND IN THE
AMOUNT OF $19,000,000.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE
OF PAYING (I) CONTRACTUAL OBLIGATIONS INCURRED OR TO BE
INCURRED FOR THE FINANCING OF IMPROVEMENTS TO TRINITY
BOULEVARD WITHIN THE CITY, AND THE PAYMENT OF FISCAL,
ENGINEERING AND LEGAL FEES INCURRED AND (ll) COSTS OF ISSUANCE
OF THE CERTIFICATES, WITH APPROPRIATIONS SUBJECT TO THE SALE
OF THE CERTIFICATES AND RECEIPT OF PROCEEDS AND ALL IDENTIFIED
AMOUNTS BEING SUBJECT TO REDUCTION TO CONFORM TO FINAL
FIGURES REFLECTED IN CLOSING DOCUMENTS AND WITH ANY EXCESS
COST OF ISSUANCE FUNDS REMAINING AFTER CLOSING BEING
TRANSFERRED TO THE GENERAL DEBT SERVICE FUND; 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 Trinity
Lakes CO 2021 Project Fund in the amount of $19,000,000 .00, from available funds , for the purpose of paying
(I) contractual obligations incurred or to be incurred for the financing of improvements to Trinity Boulevard
within the City, and the payment of fiscal, engineering and legal fees and (II) costs of issuance of the
certificates, with appropriations subject to the sale of the certificates and receipt of proceeds and all identified
amounts being subject to reduction to confonn to final figures reflected in closing documents and with any
excess cost of issuance funds remaining after closing being transferred to the general debt service fund.
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 in1pair
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 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:
---01,, ( lt//y
Assistant City Attomey Mary J. Kayser
ADOPTED AND EFFECTIVE: April 13, 2021
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 04/13/21 M&C FILE NUMBER: M&C 21-0261
LOG NAME: 13SERIES 2021 COMBINATION TAX & REV CERTIFICATES OF OBLIGATION
SUBJECT
(CD 5) Adopt Attached Ordinance Authorizing Issuance and Sale of Series 2021 Combination Tax and Revenue Certificates of Obligation in an
Aggregate Principal Amount Not to Exceed $18 ,500 ,000.00 for the TIF-Funded Trinity Boulevard Project, Establishing Parameters with Respect to
Sale of the Certificates , Delegating to Designated City Officials Authority to Effect Sale of the Certificates, and Enacting Other Provisions Related
to the Subject and Adopt Attached Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance authorizing the issuance of Series 2021 Combination Tax and Revenue Certificates of Obligation in an
aggregate principal amount not to exceed $18,500,000.00; authorizing execution of all related documents ; and approving the sale of the
certificates subject to certain parameters being met, including providing for levy, assessment and collection of a property tax sufficient to pay
the interest on and principal of the certificates if other revenues are not otherwise available and appropriated for those payments;
delegating to designated City officials authority to effect the sale; and ordaining other matters related thereto ; and
2. Adopt the attached ordinance increasing estimated receipts and appropriations in the Trinity Lakes Tax Incremental Financing Certificates of
Obligation 2021 Fund in the amount of $19,000 ,000.00 , for the purpose of paying (i) contractual obligations incurred or to be incurred for
the financing of improvements to Trinity Boulevard within the City , and the payment of fiscal, engineering and legal fees incurred and (ii) costs
of issuance of the certificates, with appropriations subject to the sale of the certificates and receipt of proceeds and all identified amounts
being subject to reduction to conform to final figures reflected in closing documents and with any excess cost of issuance funds remaining
after closing being transferred to the general debt service fund.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take actions associated with the issuance and sale of Series 2021
Combination Tax and Revenue Certificates of Obligation (C .O .s) and appropriation of proceeds for the purpose of financing (i) improvements to
Trinity Boulevard , and (ii) costs of issuance of the C .O .s .
Under state law the City Council has the authority to issue C .O .s without explicit prior voter approval , provided that notice of the intent to issue
C.O .s is published in a newspaper and posted online in accordance with state law, providing the public an opportunity to petition for an election to
be held. City Council authorized the Notice of Intent on February 23 , 2021 (M&C 21-0113). In addition, the City has established financial policies
governing the issuance of C.O.s that limit their use to finance public improvements in special c ircumstances and only after determining the City's
ability to assume additional debt. An example of special circumstances is a situation, such as the one posed here , where it would be more
economical to issue C.O .s rather than revenue bonds.
The Trinity Boulevard project, which includes certain improvements to road, sidewalk , and stormwater infrastructure , qualifies for C .O. financing
under both state law and City policy . The Board of the adjacent Tax Increment Re investment Zone No.14 -Trinity Lakes (TIF) has authorized
participation in the project, and the City Council previously approved a TIF development agreement in the amount of $18,500 ,000.00 for the project
(M&C 20-0939).
Although the City anticipates the entire cost of the C .O.s to be repaid from TIF revenues , staff is recommending issuance of combination tax and
revenue C .O.s with the City's taxing authority and a limited pledge of surplus water and sewer revenues (not to exceed $1 ,000.00). Pledging the
City's tax authority will allow the debt financing to achieve a more favorable interest rate. Making a limited pledge of surplus water and sewer
revenues meets state law provisions that require identification of a revenue source when using revenue as a potential source of repayment.
Staff is recommending that these obligations 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 requiring the
net effective interest rate not to exceed 2 .50% and providing for levy , assessment and collection of a tax sufficient to pay the interest on and
principal of the obligations if other revenues are not otherwise available and appropriated for those payments. Additionally , the C.O.s are
structured with a maximum maturity date of September 1, 2033 to coincide with the expiration of the TIF .
Subsequent to accepting the best bid and awarding the sale of the bonds , the City will seek approval of the C .O .s from the Texas Attorney General
with an estimated closing date on or around July 13, 2021. The attached appropriation ordinance reflects the maximum appropriation amount for
the proceeds of the certificates . 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 certificates. 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 . Similarly, to the extent there are any remaining proceeds
after paying cost of issuance expense , those funds are to be moved to the General Debt Service Fund for use toward repayment of the C.O .s.
This project is located in COUNCIL DISTRICT 5 with the C .O.s expected to be fully repaid from a TIF in that district but with the obligations being
supported the full faith and credit of the City as a whole .
A Form 1295 is not requ ired because : 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 series 2021 Combination Tax and Revenue
Certificates of Obligation will occur as required under the parameters set forth therein , that funds will be available in the Trinity Lakes TIF CO
2021 Fund , and that funds will be ava ilable in the General Debt Service Fund to repay the debt when due and payable .
Submitted for City Manager's Office by: Jay Chapa 5804
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Anthony Rousseau 8338
Alex Laufer 2268
Expedited