HomeMy WebLinkAbout(0003) IR 22-020 - 2022 Debt Financing Plan OverviewINFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 22-020
To the Mayor and Members of the City Council
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SUBJECT: 2022 DEBT FINANCING PLAN OVERVIEW
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February 15, 2022
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This informal report is intended to provide the Mayor and City Council with an overview of the City's 2022
debt financing plan.
New Money and Refinancing Overview
Cash Defeasance (Payoff) - Series 2012 Water & Sewer System Refunding bonds ("WaterDefeasance") —Total
Estimated Cash Contribution = $9,955,972
• Full payoff of Series 2012 Water& Sewer System Refunding bonds using available cash onhand to achieve
debt service savings
Series 2022 Tax Notes ("Tax Notes") - Total Estimated Principal = $72,195,000
• Seven-year tax-exempt notes in the amount of $72,195,000 are planned to fund (i) facility
improvements to New City Hall and (ii) scheduled fire apparatus replacements.
Series 2022A&B General Purpose Refunding & Improvement Bonds (General Obligation or"GO Bonds") —Total
Estimated Principal = $203,230,000
• Series 2022A
o Issue the fourth installment of the 2018 Bond Program authorization totaling $83,165,000
o Current refunding and restructuring of Series 2022 Tax Notes over a 15 year term(Fire Apparatus)
and 20-year term (New City Hall Improvements)
o Current tax-exempt refunding of various existing General Obligation bonds toachieve debt service
savings
• Series 2022B
o Taxable advanced refunding of certain General Obligation bonds to achieve debtservice savings
Series 2022A&B Water & Sewer Revenue Refunding & Improvement Bonds ("Water &Sewer Bonds") -
Total Estimated Principal = $187,745,000
• Series 2022A
o Fund $100,000,000 of planned Water & Sewer capital improvements
• Series 2022B
o Taxable advanced refunding of an existing series of Water & Sewer System Bondsto achieve debt
service savings
Series 2022 Special Assessment Revenue Bonds for Fort Worth Public ImprovementDistrict No. 16 ("Quail
Valley/Walsh Ranch PID") - Total Estimated Principal = $5,749,000
• Fund $5,749,000 to reimburse the developer for eligible costs associated with roadwayand landscaping
improvements in the Quail Valley/Walsh Ranch PID
• The bonds will be sold through a negotiated sale and will be repaid from assessments charged to the
property owners benefiting from the Quail Valley/Walsh Ranch PID infrastructure as outlined in the Service
and Assessment Plan for the PID
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-020
To the Mayor and Members of the City Council February 15, 2022
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SUBJECT: 2022 DEBT FINANCING PLAN OVERVIEW
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Next Steps
Please refer to the accompanying attached handout, which summarizes the planned transactions along with key
activity dates. 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
2022 Debt Plan — Financings Summary
FORT �Wp[tT
Water
General
Water&Sewer
Quail Valley/ Walsh
Defeasance
Tax Notes'
Obligation
Bonds
Ranch PID
Bonds
Estimated
$9,955,972
Principal
(Cash
$72,195,000
$203,230,0002
$187,745,0002,3
$5,749,000
Contribution)
Purpose
Cash Payoff
New Money
New Money/
New Money/
New Money
Refunding
Refunding
Term
3 Years
7 Years
20 Years
30 Years
20 Years
Repayment
Water & Sewer
Interest &
Interest &
Water & Sewer
PID
Source
System Revenue
Sinking Tax Rate
Sinking Tax Rate
System
Assessments
Revenue
Estimated Net
$677,187
N/A
$12,776,126
$7,742,539
N/A
Present Value
(6.8%)
(9.8%)
(9.4%)
Savings (%)4
Ordinance Dates
2/8/22
3/8/22
3/8/22
3/8/22
4/12/22
Rating Agency
Week of April 11 (Tentative)
Meeting Dates
Bond Sale/Pricing
2/9/22
3/8/22
5/17/22
5/24/22
4/12/2022
Dates
(Tentative)
(Tentative)
(Tentative)
Bond Closing
3/14/22
4/6/22
6/14/22
6/21/22
5/5/22
Dates
(Tentative)
(Tentative)
(Tentative)
(Tentative)
(Tentative)
1) Includes City Hall Improvements (59.759M), annual Fire Apparatus replacements (12.25M), issuance costs, and estimated final pricing
2) Includes estimated combined par amount for new money, refunding, issuance costs; and estimated final pricing; may be issued in
multiple series
3) Total project amount subject to change as project costs are finalized
pfm �GL 4) Net Present Value savings are all estimated to exceed the City's policy of 3.5% minimum savings threshold for bond refunding