HomeMy WebLinkAboutOrdinance 25390-03-2022 ORDINANCE NO.25390-03-2022
AN ORDINANCE INCREASING ESTIMATED RECEIPTS ' AND
APPROPRIATIONS IN THE TAX NOTE 2022 FUND IN THE AMOUNT OF
$72,195,000.00, FOR THE PURPOSE OF PAYING (1) CONTRACTUAL
OBLIGATIONS INCURRED OR TO BE INCURRED FOR THE CONSTRUCTION
OF PUBLIC WORKS AND THE PURCHASE OF MATERIALS, SUPPLIES,
EQUIPMENT, MACHINERY, BUILDINGS, LANDS, AND RIGHT-OF-WAY OF
IDENTIFIED PROJECTS, AND (II) COSTS OF ISSUANCE OF THE NOTES,
WITH APPROPRIATIONS SUBJECT TO THE SALE OF TAX NOTES AND
RECEIPT OF PROCEEDS AND ALL IDENTIFIED AMOUNTS BEING SUBJECT
TO REDUCTION TO CONFORM TO FINAL FIGURES REFLECTED IN NOTE-
CLOSING DOCUMENTS 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 2021-2022 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Tax
Note 2022 Fund in the amount of$72,195,000.00, for the purpose of paying (I) contractual obligations
incurred or to be incurred for the construction of identified public works and the purchase of materials,
supplies, equipment, machinery, buildings, lands, and right-of-way of identified projects, and (II) costs of
issuance of the notes,with appropriations subject to the sale of the tax notes and receipt of proceeds and all
identified amounts being 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 general debt service
fund.
Project Description Amount
New City Hall Design and Construction 100 Energy
Way $ 59,759,000.00
Fire Apparatus Replacement $ 12,250,000.00
Cost of Issuance $ 186,000.00
Total $ 72,195,000.00
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 25073-09-2021 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
c iasttr� —.). a6d'
ette S.Goodall(Mar 10,2022 11 CST)
Denis C.McElroy,Assistant City Attorney Jannette S.Goodall,City Secretary
ADOPTED AND EFFECTIVE:March 8,2022
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 03/08/22 M&C FILE NUMBER: M&C 22-0146
LOG NAME: 13SERIES 2022 TAX NOTES
SUBJECT
(ALL)Adopt Attached Ordinance Authorizing Issuance and Sale of City of Fort Worth Tax Notes,Series 2022 in an Aggregate Principal Amount
Not to Exceed$72,195,000.00 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 and sale of Tax Notes,Series 2022,in an aggregate principal amount not to exceed
$72,195,000.00;authorizing execution of all related documents;providing for the 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;and
ordaining related matters;and
2. Adopt the attached ordinance increasing estimated receipts and appropriations in the Tax Note 2022 Fund in the amount of
$72,195,000.00,for the purpose of paying(i)contractual obligations incurred or to be incurred for the construction of public works and the
purchase of materials,supplies,equipment,machinery,buildings,lands,and rights-of-way of identified projects and(ii)costs of issuance of
the notes,with such appropriations subject to the sale of tax notes and receipt of proceeds and all identified amounts being subject to
reduction to conform to final figures reflected in the note-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 2022 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.
The anticipated aggregate amount of proceeds from the sale of the Series 2022 Tax Notes$72,195,000.00. Proceeds from sale of the notes will
be used to pay for the construction and renovation of the Future City Hall facility,purchase of fire apparatus and equipment,and payment of the
costs of issuance.
The schedule of project costs listed below:
Project Description Amount
Construction and Renovation of Future City Hall F!579759,000.00
Facility
Fire Apparatus Replacement $12,250,000.00
Cost of Issuance 11 $186,000.00
Total $72,195,000.00
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
equipment replacements scheduled for Fiscal Year 2023.
On February 4,2022,the City distributed a term sheet to market participants for the sale of the Series 2022 Notes,subject to a hard deadline of
March 8,2022,for receipt of bids.
Based on the bids received,staff is recommending award of sale of the 2022 notes(tax-exempt)in a total principal amount of$72,195,000.00 to
,with a true interest cost(TIC)of \%. The City will seek approval of the debt transactions from the Texas Attorney
General with an estimated closing and funding date of April 6,2022.
With execution of the note purchase agreement,the City will be committed to issuance and sale of the notes.
The attached appropriation ordinance reflects the maximum appropriation amount for note proceeds. Its structure accommodates variables
associated with sale of debt.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.
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 2022 Tax
Notes will proceed as necessary to provide funding in the Tax Note 2022 Fund. Prior to any expenditures being incurred,the Property
Management and Financial Management Services Departments have the responsibility to validate the availability of funds.
Submitted for City Manager's Office by- Reginald Zeno 8517
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Anthony Rousseau 8338
Expedited