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Home My WebLink About(0002) IR 21-10557 - 2021 Debt Financing Plan OverviewINFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10557 PRTEA(, To the Mayor and Members of the City Council April 6, 2021 3% d5 Page 1 of 2 rsrJAI { ,Q,0L SUBJECT: 2021 DEBT FINANCING PLAN OVERVIEW This informal report is intended to provide the Mayor and City Council with a concise overview of the City's 2021 debt financing plan. New Money and Refinancing Opportunities Series 2021 C Tax Notes Seven year tax exempt notes in the amount of $17,000,000 are planned to fund scheduled fire apparatus replacements, partial funding for fire station rehabilitation and renovation work, the Fort Worth Zoological Elephant Springs Phase II improvements, and design and engineering costs associated with the upcoming Forest Park pool replacement project. Series 2021 Combination Tax and Revenue Certificates of Obligation Twelve year Combination Tax and Revenue Certificates of Obligation in the amount of $18,500,000 are planned to fund certain eligible improvements within the Tax Increment Reinvestment Zone No. 14 (Trinity Lakes TIF). The repayment source for this obligation will come from TIF revenues. Series 2021A (Tax -Exempt) General Purpose Refunding & Improvement Bonds • Issue the third tranche of the 2018 Bond Program authorization totaling $83,170,000 • Current refunding and restructuring of the tax exempt portion of the City Hall acquisition and renovation (Series 2021A Tax Notes) over a 20 year term • Current refunding and partial cash payoff of Series 2011 General Purpose Bonds to achieve debt service savings Series 2021 B (Taxable) General Purpose Refunding Bonds • Advanced refunding of Series 2013B Certificates of Obligation to achieve debt service savings • Current refunding and restructuring of the taxable portion of the City Hall acquisition and renovation (Series 2021 B Tax Notes) over a 20 year term Series 2021 Water & Sewer Revenue Refunding & Improvement Bonds • Fund $75,000,000 of planned Water & Sewer capital improvements • Fund the $51,800,000 SCADA project that was originally planned to be funded through the Texas Water Development Board capital funding program • Current refunding of Series 2011 Water & Sewer System Revenue Refunding & Improvement Bonds to achieve debt service savings ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10557 PRTEA(, To the Mayor and Members of the City Council April 6, 2021 3% d5 Page 2 of 2 rsrJAI { ,Q,0L SUBJECT: 2021 DEBT FINANCING PLAN OVERVIEW In addition, a late fall 2021 bond issue is being planned for the Fort Worth Public Improvement District No.16 (Walsh Ranch/Quail Valley) to reimburse the developer for eligible costs associated with roadway and landscaping improvements. The bonds will be sold through a negotiated sale and will be repaid from assessments charged to the property owners benefiting from the PID infrastructure as outlined in the Service and Assessment Plan for this PID. Next Steps Staff will bring forward parameters ordinances relating to the above transactions for Council consideration at the April 13, 2021 Council meeting along with a renewal ordinance for the Water & Sewer Commercial Paper program. Conference calls and/or meetings with the City's Credit Rating Agencies are planned to occur during the week of May 10, 2021 with the bond sales planned on June 8-9, 2021. The final closing and delivery of funds is planned to occur on July 13-14, 2021. Please refer to the accompanying presentation for additional details. If you have any questions, please contact Reginald Zeno, Chief Financial Officer, at 817-392-8500. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS 2021 DEBT FINANCING PLAN FY DEBT ACTIVITIES TO DATE Series 2020 Drainage Revenue Refunding and Improvement Bonds • Total Issue Size: $103,210,000 • Term: 25 years • TIC:1.95% • PV Savings: 19.13% or $10,588,381 • Purpose: Drainage system improvements and to refinance $55.33 million of existing stormwater debt obligations to achieve net savings • Bond Ordinance Approved by Council on September 22, 2020 (M&C 20-0727) • Bonds Closed and Funds Delivered — November 17, 2020 FY DEBT ACTIVITIES TO DATE New City Hall Financing Overview Series 2021 A (Tax -Exempt) • Total Issue Size: $74,000,000 • Term: 7 years • TIC:0.76% Series 2021B (Taxable) • Total Issue Size: $26,000,000 • Term: 7 years • TIC:0.99% • Purchase, construction, and renovation of the former Pier 1 Building, which the City has designated as the new City Hall facility • Bond Ordinance Approved by Council on December 15, 2020 (M&C 20-0908 and M&C 20-0909) • Bonds Closed and Funds Delivered — January 2132021 • Callable 9/1 /21 - plan to refinance to a 20 year term WHAT'S NEXT - NEW MONEY Property Tax Supported Debt Tax Notes — $17,000,000 - Fire Apparatus ($11,766,000) - Fire Station Rehabilitation & Renovation — Partial Funding ($3,004,000) - Fort Worth Zoological Association Elephant Springs Phase II - ($1,330,000) - Forest Park Pool ($900,000) Certificates of Obligation — $18,500,000 - Trinity Lakes TIF Project - Self-supporting (paid from TIF revenues) General Purpose GO Bonds - $83,170,000 - 2018 Bond Program Authorization - Prop 1: Streets ($49,400,000) - Prop 2: Park & Recreation ($20,000,000) - Prop 5: Animal Care and Shelter Facility ($13,770,000) Water & Sewer Water & Sewer Rev Bonds - $126,800,000 - $75 million for Water CIP projects - $51.8 million for SCADA project - Restore Appropriation Authority (maximum of $150 million) to the Commercial Paper Fund - Annual Renewal of Ordinance Authorizing Refinancing of Commercial Paper - Expires May 31, 2021 GO Refunding Opportunities General Purpose Refunding Bonds, Series 2021 A • Current refunding and restructuring of Series 2021 A Tax Notes • Current refunding of Series 2011 General Purpose Bonds • Total Principal to be Refunded: $82,625,000 • Series 2011 Projected PV Savings — 3.08 % or $266, 328 • Utilize $7,100,000 of excess debt service fund balance to reduce amount of refunding bonds issued r General Purpose Refunding Bonds, Series 2021 B (Taxable) • Advanced refunding of Series 2013B CO's • Current refunding and restructuring of Series 2021 B Tax Notes • Total Principal to be Refunded: $32,635,000 • Series 2013B Projected PV Savings — 9.96% or $660, 790 Water Refunding and Cash Defeasance Opportunities Water & Sewer Refunding Bonds, Series 2021 • Current Refunding of Series 2011 Water & Sewer System Revenue Refunding & Improvement Bonds • Total Principal to be Refunded: $42,985,000 • Projected NPV Savings — 12.14% or $5,220,342 Partial Cash Defeasance (Pay Off with Existing Resources: • Series 2011 Water & Sewer System Revenue Refunding & Improvement Bonds • Total Principal to be Paid Off: $24,730,000 • Estimated interest savings of $8,048,265 GO DEBT CAPACITY GO Debt Capacity Analysis Key assumptions in the model left unchanged from a year ago: • Includes $4,675,000 for delinquents, penalties and interest on delinquents and interest earnings each year • Some debt paid from CCPD funds, C&T revenues, Solid Waste revenues, Parking system revenues, and car rental taxes • Tax Note Program revised forecast: $17,000,000 in 2021 through 2027 growing by 3% each year thereafter • Remaining 2018 bond program authorization issued in 2022 and 2023 Changes to the model input: • Revised property tax growth rate assumptions consistent with P&DA long term financial forecast • Projected debt service revenues updated based on final levy: $0.1525 I&S Rate and $116,440,101 current property tax levy • Assumes cash defeasance and refunding opportunities, previously discussed • Updated market rates through March 5, 2021 + 0.25% cushion Changes to the model output: • Resulting bonding capacity equal to $599.52 million GO Debt Capacity Analysis (2021) $180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 Projected Debt Service Fund Revenues Existing Tax Supported Debt Service Tax Notes (2022-2047) for Fire Equipment — Projected Debt Issuances for FY 2021 9 Projected $166.330 mm of Remaining 2018 Authorization — Projected $599.520 mm 2022/23 Bond Program 2018 BOND PROGRAM SUMMARY 4/7/2020 10 Purpose Streets & Mobility Infrastructure Parks & Recreation Public Library Fire Safety Animal Care and Shelter Facility Police Facility 2018 BOND PROGRAM PROPOSITION SUMMARY Amount Amount Previously Authorized Issued $261,630,080 $105,000,000 84,180,600 9,868,500 11,975,820 13,770,000 18,075,000 26,000,000 4,000,000 15,000,000 Amount Being Issued $49,400,000 20,000,000 13,770,000 Unissued Balance $107,230,185 38,180,600 9,868,500 7,975,820 3,075,000 $399,500,000 $150,000,000 $83,170,000 $166,330,000 2018 BOND PROGRAM DEBT ISSUANCE 2019 $1667800, 000 2020 $75,500,000 2021 $77, 875, 000 2022 $79,3257000 2023 $0 Totals $3997500,000 $307000, 000 $12070007000 $83,170,000 $83,1657000 $83,1655000 $3997500, 000 Water & Sewer Issuance WATER AND SEWER FUTURE NEW MONEY 2021 2022 2023 2024 2025 Note: subject to change 1 4 Revenue :• • -$0- -$0- $1269800, 000 -$0- -$0- $1009000, 000 -$0- -$0- $7590009000 $44,0007000 -$0- $1617000,000 -$0- -$0- $1007000,000 Thank you!