HomeMy WebLinkAbout(0086) RESOLUTION - Extraordinary Optional Redemption PID 17 (Rock Creek)A Resolution
NO.
AUTHORIZING EXERCISE OF OPTIONAL REDEMPTION RIGHTS FOR
SPECIAL ASSESSMENT REVENUE BONDS ASSOCIATED WITH FORT
WORTH PUBLIC IMPROVEMENT DISTRICT NO. 17 (ROCK CREEK RANCH)
WHEREAS, the City Council of the City of Fort Worth, Texas established Fort Worth Public
Improvement District No. 17 (Rock Creek Ranch) (the "District") pursuant to Resolution No. 4724-12-
2016, which became effective with its publication on December 16, 2016; and
WHEREAS, on August 15, 2017, following notice and hearing in accordance with state law, the
City Council adopted an ordinance levying assessments for major improvements in the District
(Ordinance 22832-08-2017) ("Major Improvement Assessment Ordinance"); and
WHEREAS, on August 15, 2017, the City Council also adopted an ordinance (Ordinance
22833-08-2017) (the "Major Improvement Bond Ordinance") authorizing issuance and sale of major
improvement revenue bonds (the "Major Improvement Bonds") secured by and payable from the major
improvement assessments, with the issuance and sale subject to an approved and attached form of
indenture; and
WHEREAS, on June 5, 2018, following notice and hearing in accordance with state law, the
City Council adopted an ordinance levying assessments in the Western Improvement Area of the District
for roadway improvements (Ordinance 23243-06-2018) ("Roadway Improvement Assessment
Ordinance"); and
WHEREAS, on June 15, 2018, the City Council also adopted an ordinance (Ordinance 23244-
06-2018) (the "Roadway Improvement Bond Ordinance") authorizing issuance and sale of roadway
improvement revenue bonds (the "Roadway Improvement Bonds") secured by and payable from the
roadway improvement assessments, with the issuance and sale subject to an approved and attached form
of indenture; and
WHEREAS, the Major Improvement and Roadway Improvement Assessment Ordinances each
provide that assessments may be paid in annual installments or may be prepaid in whole or in part
("Prepayments"), with any such Prepayment amount to be deposited in the respective Redemption Fund;
and
WHEREAS, pursuant to Section 4.4 of the Indentures associated with each of the Major
Improvement Bond Ordinance and the Roadway Improvement Bond Ordinance, the City reserves the
right and option to redeem bonds, in whole or in part, before their respective scheduled maturity dates at
a redemption price of 100% of the principal amount of the portions of bonds redeemed plus accrued
interest from amounts on deposit in the respective Redemption Fund as a result of Prepayments
(including any other transfers to the Redemption Fund as provided under the terms of the applicable
indenture), with such situation considered an Extraordinary Optional Redemption; and
WHEREAS, City staff monitors the Redemption Fund for each series of District bonds to
determine whether sufficient Prepayments have accrued so as to allow an Extraordinary Optional
Redemption to occur in order to make the most beneficial use of available Prepayments in each
Redemption Fund, resulting in the reduction of the outstanding indebtedness secured by such revenues;
and
WHEREAS, the Fort Worth City Council wishes to authorize the exercise of Extraordinary
Optional Redemption rights for each series of District bonds when funds are sufficient in the respective
Redemption Funds and conditions are otherwise appropriate.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
Section 1. That the City Council hereby directs the City Manager, acting directly or through one
or more designees, to monitor the Redemption Fund established for the City of Fort Worth, Texas
Special Assessment Revenue Bonds, Series 2017 (Fort Worth Public Improvement District No. 17
(Rock Creek Ranch) Major Improvement Project) to determine whether sufficient Prepayments
(including any other funds transferred in accordance with the terms of the indenture) have accrued to
effect an Extraordinary Optional Redemption of some or all of the Major Improvement Bonds.
Section 2. That the City Council hereby directs the City Manager, acting directly or through one
or more designees, to monitor the Redemption Fund established for the City of Fort Worth, Texas
Special Assessment Revenue Bonds, Series 2018 (Fort Worth Public Improvement District No. 17
(Rock Creek Ranch) Major Roadway Improvement Project) to determine whether sufficient
Prepayments (including any other funds transferred in accordance with the terms of the indenture) have
accrued to effect an Extraordinary Optional Redemption of some or all of the Roadway Improvement
Bonds.
Section 3. That whenever sufficient available funds have accrued pursuant to Section 1 above,
the City Council hereby authorizes the use of such available funds (the "Major Improvement Available
Funds") for the purpose of effecting extraordinary optional redemption of all or a portion of the Major
Improvement Bonds (the "Redeemed Major Improvement Bonds").
Section 4. That whenever sufficient available funds have accrued pursuant to Section 2 above,
the City Council hereby authorizes hereby authorizes the use of such available funds (the "Roadway
Improvement Available Funds") for the purpose of effecting extraordinary optional redemption of all or
a portion of the Roadway Improvement Bonds (the "Redeemed Roadway Improvement Bonds").
Section 5. That the Redeemed Major Improvement Bonds and the Redeemed Roadway
Improvement Bonds are herein collectively referred to as the "Redeemed Obligations."
Section 6. That the City Manager is hereby directed to fund the extraordinary optional
redemption of Major Improvement Bonds from Major Improvement Available Funds in an amount
equal to the principal amount of the Redeemed Major Improvement Bonds, plus accrued interest on the
Redeemed Major Improvement Bonds to their date fixed for redemption.
Section 7. That the City Manager is hereby directed to fund the extraordinary optional
redemption of Roadway Improvement Bonds from Roadway Improvement Available Funds in an
amount equal to the principal amount of the Redeemed Roadway Improvement Bonds, plus accrued
interest on the Redeemed Roadway Improvement Bonds to their date fixed for redemption.
Section 8. That the City Manager is hereby directed to cause the Redeemed Obligations that are
eligible for redemption prior to their stated maturities pursuant to an Optional Extraordinary Redemption
to be redeemed prior to their scheduled maturities in accordance with the respective indenture. Notice
of the redemption of the Redeemed Obligations shall be given in the manner provided in the proceedings
authorizing the issuance of the Redeemed Obligations.
Section 9. That this Resolution shall become effective immediately upon its adoption, in
accordance with the provisions of Section 1201.028, Texas Government Code.
Section 10. That this City Council officially finds and determines that the meeting at which this
Resolution is adopted was open to the public, and that public notice of the time, place, and purpose of
such meeting was given, all as required by Chapter 551, Texas Government Code, as amended.
PASSED AND APPROVED the 27th day of October, 2020.
Mayor, City of Fort Worth, Texas
ATTEST:
City Secretary, City of Fort Worth, Texas (SEAL)
APPROVED AS TO FORM AND LEGALITY:
City Attorney, City of Fort Worth, Texas
Signature Page — Resolution Authorizing Extraordinary Optional Redemption