HomeMy WebLinkAboutResolution 4194-04-2013 A Resolution
NO. 4194-04-2013
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT
WHEREAS, the City of Fort Worth, Texas (the "City") is a home-
rule municipality and political subdivision of the State of Texas;
WHEREAS, the City expects to pay from available funds
expenditures in connection with improvements to the City's water and
sewer system, including, but not limited to, treatment plants, major
transmission mains and wastewater collectors, tanks and pump
stations, and lift stations prior to the issuance of obligations by the
City in connection with the financing of these projects;
WHEREAS, the City finds, considers, and declares that the reimbursement of
the City for the payment of such expenditures will be appropriate and consistent
with the lawful objectives of the City and, as such, chooses to declare its intention,
in accordance with the provisions of Section 1.150-2 of the Treasury Regulations, to
reimburse itself for such payments at such time as it issues obligations to finance the
projects;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
Section 1. The City reasonably expects it will incur debt, as one or more
series of obligations, with an aggregate maximum principal amount not to exceed
$150,000,000, for the purpose of paying the aggregate cost of the projects.
Section 2. All costs to be reimbursed pursuant hereto will be capital
expenditures. No tax-exempt obligations will be issued by the City in furtherance of
this Statement after a date which is later than 18 months after the later of (1) the
date the expenditures are paid or (2) the date on which the properties, with respect
to which such expenditures were made, are placed in service.
oRT WORT
Resolution No. 4194-04-2013
Section 3. The foregoing notwithstanding, no tax-exempt obligation will be
issued pursuant to this Statement more than three years after the date any
expenditure which is to be reimbursed is paid.
Adopted this 2,,d day of April, 2013.
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City of Fort Worth, Texas
Mayor and Council Communication
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COUNCIL ACTION; Approved on 4/2/2013 - Resolution No, 4194-04-2013
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DATE: Tuesday, April 02, 2013 REFERENCE NO.: G-17850
LOG NAME: 1313 WATER REIMB RES
SUBJECT:
Adopt Resolution Expressing Official Intent to Reimburse Costs of Approximately $150,000,000.00 of
Water and Sewer System Projects and Improvements (ALL COUNCIL DISTRICTS)
....................... _ _ .. ..
RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution expressing official intent to
reimburse costs of approximately $150,000,000.00 of Water and Sewer system projects and
improvements.
DISCUSSION:
The City issues long-term debt to fund capital projects for the Water and Sewer System to improve and
expand infrastructure related to growth, replace aging infrastructure in older portions of the system and
upgrade technology.
The City Council has authorized both a commercial paper program (M&C C-22028, March 27, 2007) and a
short-term note program (M&C C-26169, March 26, 2013)for the purpose of providing a short-term
financing options for the Water Department's ongoing capital projects. The programs allow the City to
issue short-term debt (commercial paper or short-term notes) to provide interim financing or use the
authority to initiate projects and use cash from the City portfolio to fund projects until such time as the City
issues long-term debt to replenish the portfolio. To accommodate these short term financing vehicles,
Staff recommends adopting the attached resolution stating the City's intent to initiate water and sewer
capital projects and to reimburse itself through the issuance of debt at a later date.
In accordance with the provisions of the Financial Management Policy Statements, Staff anticipates
presenting revenue-supported long-term debt issuances to the City Council for consideration in the
upcoming months. If debt is not issued within approximately three years to provide reimbursement for
these expenses, the IRS requires that costs are no longer reimbursable by issuing revenue supported
debt, and the funding source will have to be made whole through other budgetary methods. Adoption of
this resolution does not obligate the City to sell bonds but preserves the ability to reimburse the City from
bond proceeds.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that this action will not increase appropriation of
City funds.
FUND CENTERS:
TO Fu nd/Accou nt/C enters FROM Fund/Account/Centers
Logname: 1313 WATER REIMB RES Page I of 2
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Horatio Porter (2379)
Lisa Parks (6630)
Additional Information Contact: Jan Hale (8438)
Logname: 1313 WATER REIMB RES Page 2 of 2