HomeMy WebLinkAboutOrdinance 24812-04-2021ORDINANCE NO. 24812-04-2021
AN ORDINANCE ADJUSTING THE FISCAL YEAR 2020-2021 BUDGET TO
CORRECT FUNDING FOR FIRE APPARATUS REPLACEMENT BY
DECREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
ANNUAL FIRE APPARATUS REPLACEMENT PROJECT OF THE GENERAL
CAPITAL IMPROVEMENT PLAN BY $11,765,564.00 AND INCREASING
ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE FIRE APPARATUS
REPLACEMENT PROJECT OF THE TAX NOTE 2021C FUND BY $11,766,000.00,
SUBJECT TO ISSUANCE AND SALE OF TAX NOTES AND RECEIPT OF
PROCEEDS; INCREASING RECEIPTS AND APPROPRIATIONS IN OTHER
IDENTIFIED PROJECTS OF THE TAX NOTE 2021C FUND BY $5,584,000.00,
SUBJECT TO THE ISSUANCE AND SALE OF TAX NOTES AND RECEIPT OF
PROCEEDS WITH ALL SUCH AMOUNTS SUBJECT TO REDUCTION TO
CONFORM TO FINAL FIGURES REFLECTED IN NOTE-CLOSING
DOCUMENTS AND WITH ANY EXCESS COST OF ISSUANCE FUNDS
REMAINING AFTER CLOSING BEING TRANSFERRED TO THE 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 the budget of the City of Fort Worth for Fiscal Year 2020-2021 , as enacted by Ordinance 24446-09-
2020, as amended, is hereby further revised to co1Tect the funding source for fire apparatus replacement by
reducing estimated receipts and appropriation in the Annual Fire Apparatus Replacement Project of the
General Capital Improvement Plan by $11,765,564.00, and to increase estimated receipts and appropriations
in the Fire Apparatus Replacement Project of the Tax Note 2021C Fund by $11 ,766 ,000 .00 , subject to
issuance and sale of tax notes and receipt of funds , with such amount subject to reduction to conform to final
figures reflected in the tax note closing documents.
SECTION 3.
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 Tax
Note 2021C Fund $5,584,000.00 allocated by project and amount as follows:
Project Amount
Fire Station Rehab and Renovations $3,004,000 .00
FWZA Elephant Springs Phase II $1,330,000 .00
Forest Park Pool Improvements $900,000.00
Tax Note Costs of Issuance $3 50,000 .00
with all such appropriations subject to reduction to conform to final figures reflected in the tax note closing
documents and w ith any excess cost of issuance funds remaining after closing being transferred to the debt
service fund.
SECTION 3.
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 shal I 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 4.
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.
SECTIONS.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY
Assistant City Attorney Mary J. Kayser
ADOPTED AND EFFECTIVE: April 13, 2021
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 04/13/21
LOG NAME: 13SERIES 2021C TAX NOTES
SUBJECT
M&C FILE NUMBER: M&C 21-0265
(ALL) Adopt Attached Ordinance Authorizing Issuance and Sale of Tax Notes in an Aggregate Principal Amount Not to Exceed $17 ,000 ,000.00,
Establishing Parameters with Respect to Sale of the Notes, Delegating Authority to Effect Sale of the Notes, and Enacting Related Provisions ; and
Adopt Attached Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance authorizing the issuance of Series 2021 C Tax Notes in an aggregate principal amount not to exceed
$17,000,000.00; authorizing execution of all related documents; approving sale of the notes subject to certain parameters ; providing for levy,
assessment and collection of a property tax sufficient to pay the interest on and principal of the notes if other revenues are not otherwise
available and appropriated for those payments ; delegating to designated City officials authority to effect the sale ; and enacting other
provisions related thereto ; and
2. Adopt the attached ordinance (i) adjusting the FY2021 budget to correct funding for fire apparatus replacement by decreasing estimated
receipts and appropriations in the Annual Fire Apparatus Replacement Project of the General Capital Improvement Plan by $11,765 ,564 .00
and increasing estimated receipts and appropriations in the Fire Apparatus Replacement Project of the Tax Note 2021C Fund by
$11 ,766 ,000 .00 , subject to issuance and sale of tax notes and receipt of proceeds and (ii) increasing estimated receipts and
appropriations in the other identified projects of the Tax Note 2021 C Fund by a total of $5 ,584 ,000 .00, subject to issuance and sale of tax
notes and receipt of proceeds with all such appropriations subject to reduction to conform to final figures reflected in the tax note closing
documents and with any excess cost of issuance funds remaining after closing being transferred to the debt service fund.
DISCUSSION:
The purpose of th is Mayor and Council Communication (M&C) is to take actions associated with the issuance and sale of Series 2021C tax notes
and appropriation of proceeds for the purpose of paying (i) costs related to certain capital projects , and (ii) costs of issuance of the notes .
Proceeds from the sale of the tax notes will be used for purchase of fire equipment, fire station rehabilitation and renovations, construction
improvements related to the Fort Worth Zoological Association Elephant Springs Phase II project, and Forest Park pool improvements as well as
to pay the costs of issuance .
The schedule of project costs is listed below:
Project Description
ol improvements
*The appropriation for the Fire Apparatus Replacement project replaces and eliminates a similar appropriation that was identified in error in the
adopted FY2020-2021 budget ordinance.
The City has used an Equipment Note Program for the City's Fire Department since at least 1999 (Ordinance No. 13701 ). On an annual recurring
basis , tax notes are sold on the open market under a competitive process and proceeds are used to finance the equipment replacement program
for fire equipment and apparatus . In conjunction with the Fleet Management Division of the Property Management Department, the Fire
Department manages a fleet rotation plan that annually identifies vehicles and equipment that have reached the end of their useful lives and are too
old or costly to continue to utilize or maintain for public safety operations. A portion of the proceeds from sale of the notes will be used to acquire
equ ipment replacements scheduled for Fiscal Year 2021 .
The other identified projects are recommended for funding out of tax note proceeds based on management's assessment of the nature of the
projects , the City's role therein , and overall capital and debt plan objectives. The Forest Park pool project would fund the design of a replacement
for that nearly century old facility with the intent that voters will be asked to approve funding for construction of the new Forest Park pool as part of
the 2022 bond program.
Staff is recommending that the tax notes 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 that the
maximum interest rate on the notes not exceed 1.75 % and providing for levy , assessment and collection of a tax sufficient to pay the interest on
and principal of the notes if other revenues are not otherwise available and appropriated for those payments. Additionally , the notes are structured
with a seven (7) year term to comply with state law.
Rating agency presentations for Fitch, S&P , and Kroll will be conducted in early May of 2021 . Ratings are anticipated to be rece ived in mid-May .
Bids for the sale of the notes are estimated to be submitted on June 8, 2021 . Subsequent to accepting the best bid and awarding the sale of the
bonds , the City will seek approval of the debt transactions 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 note proceeds . Its structure accommodates variables
associated with sale of debt under delegated authority such as the uncertain final interest rate to be ach ieved and the possibility of a prem ium or
d iscount being associated with the sale of the notes . 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 ex pense , those funds are to be moved to the
General Debt Servi ce Fund .
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 upon adoption of the actions provided within this Mayor and Council Communication , the sale of the 2021 C
Tax Notes will proceed as necessary to provide fund ing in the Tax Note 2021 C Fund for the 2021 Fire Truck/Apparatus Replac , Fire Station
Rehab/Reno, CFA-Zoo Elephant Springs Ph II , Forest Park Pool , and Cost of Issuance projects . Further, f unds will be available within the General
Debt Service Fund to repay the debt when due and payable. Prior to any expenditures being incurred , the participating 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: Anthony Rousseau 8338
Alex Laufer 2268
Expedited