HomeMy WebLinkAboutOrdinance 25007-08-2021 ORDINANCE NO. 25007-08-2021
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE FORT WORTH PUBLIC IMPROVEMENT
DISTRICT NO. 16-QUAIL VALLEY FUND IN THE AMOUNT OF $76,782.34,
FROM FUND BALANCE,FOR THE PURPOSE OF FUNDING REIMBURSEMENT
OF ELIGIBLE COSTS TO THE DEVELOPER UNDER THE WALSH
RANCH/QUAIL VALLEY PUBLIC IMPROVEMENT DISTRICT-
IMPROVEMENT AREA NO.1 REIMBURSEMENT AGREEMENT, AND
REDUCING FUND BALANCE BY THE SAME AMOUNT; 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 Fort
Worth Public Improvements District No. 16-Quail Valley Fund in the amount of$76,782.34, from fund
balance, for the purpose of funding the reimbursement of eligible costs to the developer under the Walsh
Ranch/Quail Valley Public Improvement District-Improvement Area No. I Reimbursement Agreement, and
reduced fund balance by the same amount.
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 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said prior ordinances and appropriations are hereby expressly repealed.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
P C '
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Assistant City Attorney Ronald P.Gonzales �� ;.• !QJ,
Acting City Secretary
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ADOPTED AND EFFECTIVE: August 24,202124,2021
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/24/21 M&C FILE NUMBER: M&C 21-0601
LOG NAME: 13QUAIL VALLEY PID FY2021 REIMBURSEMENT2
SUBJECT
(CD 3)Adopt Attached Ordinance Increasing Appropriations in Fort Worth Public Improvement District No. 16-Quail Valley Fund(Walsh Ranch)
by$76,782.34,from Fund Balance,for the Purpose of Reimbursing Developer for Eligible Costs Under Reimbursement Agreement
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance increasing estimated receipts and appropriations in the Fort Worth Public
Improvement District No. 16-Quail Valley Fund by$76,782.34,from available funds,for the purpose of funding reimbursement of eligible costs to
the developer under the Improvement Area No. 1 Reimbursement Agreement for Walsh Ranch/Quail Valley Public Improvement District, and
reducing fund balance by the same amount.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to appropriate funds for an installment payment under the reimbursement
agreement for the first phase of the Walsh Ranch/Quail Valley Public Improvement District(PID), PID 16.
In September 2016,the City Council approved the creation of the Walsh Ranch/Quail Valley PID,which encompasses approximately one-fourth of
the entire Walsh Ranch property, as a vehicle to reimburse the developer for a portion of certain infrastructure costs. Full development of the PID
will encompass multiple phases that occur over several years as phases of PID 16 are developed.
In May 2017,the City Council approved M&C C-28221,which levied assessments on Improvement Area No. 1 of the Walsh Ranch/Quail Valley
PID (the first phase of development)and authorized the Improvement Area#1 Reimbursement Agreement(CSC 49301). Per the Service and
Assessment Plan and reimbursement agreement,total reimbursement of$6,350,000.00 is to be paid to the developer from assessments on
property in Improvement Area No. 1.The developer is also constructing,without reimbursement from the PID, additional improvements in the
amount of$23,168,594.00, bringing the total costs of PID-eligible improvements in Improvement Area No. 1 of the Walsh Ranch/Quail Valley PID
to$29,518,594.00,of which less than 25%is being reimbursed.
The developers are responsible for managing all construction and the associated agreements for the development of infrastructure improvements
within the PID.The City will make quarterly payments to the developers in satisfaction of the reimbursement amount from the special assessments
revenues,less any administrative fees,with assessments and reimbursement paid over a maximum period of thirty years. Unless and until bonds
are issued, the developer is entitled to interest on the unpaid reimbursement amount at the rate of six percent in years one and two, and five
percent in years three through thirty. Reimbursement for Fiscal Year 2021 is the third of thirty collection periods,and the applicable interest rate for
Fiscal Year 2021 collections is 5.00%. Quarterly payments made through June 15,2021 for the Improvement Area#1 Reimbursement Agreement
total $1,171,881.12, of which $257,488.00 has been applied to reduce the original principal balance and $914,393.12 was applied towards
interest earned. The original Improvement Area#1 balance was$6,350,000.00,of which$6,092,512.00 remains outstanding.
Per the terms of the Master Reimbursement Agreement for the Walsh Ranch/Quail Valley PID (CSC 49300), the City agreed that-if certain
conditions reflecting expeditious development of the entire PID were met-it would consider issuing revenue bonds secured by and funded out of
PID assessment revenues to accelerate reimbursement to the developers. It is anticipated revenue bonds for Improvement Area#1 would be
presented for Council consideration during Fiscal Year 2022. To the extent bond proceeds are not sufficient to pay the entire balance of the
reimbursement amount for Improvement Area#1,incremental repayments from PID assessments will resume following full repayment of the bonds
and continue through year thirty,with interest on such installments tied to the interest rate of the bonds.
Public Improvement District No. 16 is located in COUNCIL DISTRICT 3.
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 fund balance within the FWPID#16-Quail Valley Fund and upon approval
of the above recommendation and adoption of the attached appropriation ordinance,funds will be available in the FWPID#16-Quail Valley Fund.
Prior to an expenditure being incurred,the Financial Management Services Department has the responsibility of verifying 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
Expedited