HomeMy WebLinkAboutOrdinance 26011-02-2023 ORDINANCE NO. 26011-02-2023
DIRECTING PUBLICATION AND POSTING OF NOTICE OF
INTENTION TO ISSUE COMBINATION TAX AND REVENUE
CERTIFICATES OF OBLIGATION; AND ORDAINING OTHER
MATTERS RELATING TO THE SUBJECT
WHEREAS, the City of Fort Worth, Texas (the "City"), expects to pay expenditures in
connection with the design, planning, acquisition and construction of the projects described in
Exhibit A to this Ordinance prior to the issuance of the hereinafter described Certificates of
Obligation; and
WHEREAS, the City Council of the City (the "Council") hereby finds, considers and
declares that the reimbursement of the payment by the City 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 U.S. Treasury
Regulations, to reimburse itself for such payments at such time as it issues the Certificates of
Obligation; and
WHEREAS, it is hereby officially found and determined that the meeting at which this
Ordinance was considered was open to the public, and public notice of the time, place and
purpose of said meeting was given, all as required by Chapter 551, Texas Government Code.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
Section 1. That hereto and marked Exhibit A is the form of Notice of Intention to Issue
Combination Tax and Revenue Certificates of Obligation (the "Notice"), the form and substance
of which are hereby passed and approved.
Section 2. That the City Manager shall cause the Notice to be (a) published, in
substantially the form attached hereto, in a newspaper of general circulation in the City, once a
week for two consecutive weeks,the date of the first publication to be before the forty-fifth (45th)
day before the day tentatively proposed for authorizing the issuance of the Certificates of
Obligation as shown in the Notice and (b) posted, in substantially the form attached hereto,
continuously on the City's internet website for at least forty-five (45) days before the day
tentatively proposed for authorizing the issuance of the Certificates of Obligation as shown in the
Notice.
Section 3. That the improvements to be financed with proceeds from the proposed
Certificates of Obligation are to be used for the purposes described in the Notice.
Section 4. That attached hereto as Schedule I is a list of outstanding debt obligations of
the City which the City hereby designates as self-supporting debt for purposes of Subchapter C
of Chapter 271, Texas Local Government Code, as amended.
Section 5. That all costs to be reimbursed pursuant to this Ordinance will be capital
expenditures; the proposed Certificates of Obligation shall be issued within 18 months of the
later of(i) the date the expenditures are paid or (ii) the date on which the property, with respect
to which such expenditures were made, is placed in service; and the foregoing notwithstanding,
the Certificates of Obligation will not be issued pursuant to this Ordinance on a date that is more
than three years after the date any expenditure which is to be reimbursed is paid.
Section 6. That this Ordinance shall be effective immediately from and after its passage,
and it is accordingly so ordained.
ADOPTED AND EFFECTIVE February 14, 2023.
Ma or, City of Fort Worth, Texas
ATTEST:
*C' Sle0jerr't�etary, City of
Wh, Texas
APPROVED AS TO FORM:
Ckly XiGrney"(flty o
Fort Worth, Texas FORT.4
A. (City Seal)
Signature Page—Ordinance Authorizing Publication and Posting of Notice of Intent to Issue Certificates of Obligation
Exhibit A
NOTICE OF INTENTION TO ISSUE
COMBINATION TAX AND REVENUE
CERTIFICATES OF OBLIGATION
NOTICE IS HEREBY GIVEN that it is the intention of the City Council (the "Council")
of the City of Fort Worth, Texas (the "City"), to issue one or more series of interest bearing
certificates of obligation of the City to be entitled "City of Fort Worth, Texas Combination Tax
and Revenue Certificates of Obligation", for the purpose of paying all or a portion of the City's
contractual obligations incurred in connection with the (i) construction, improvement and
equipment of City Hall, including related street and sidewalk improvements, (ii) construction,
improvement and equipment of the Fort Worth Convention Center, including related street and
sidewalk improvements, and (iii) payment of fiscal, engineering and legal fees incurred in
connection therewith. The Council tentatively proposes to authorize the issuance of said series
(one or more) of Certificates of Obligation at its regular meeting place in the City Hall at a
meeting to commence at 7:00 o'clock, p.m., on the 11th day of April, 2023. In the event the
Council will be unable to meet at City Hall on April 11, 2023, the City will post information on
its website for attending the meeting by telephone, teleconference or other electronic means. The
maximum principal amount of Certificates of Obligation that may be authorized to be sold on
said date for such purposes described above is $94,000,000. The Council presently proposes to
provide for the payment of said series (one or more) of Certificates of Obligation from the levy
of ad valorem taxes and from a limited pledge (not to exceed$1,000) of surplus revenues derived
from the operation of the City's water and sewer system.
In accordance with the provisions of Subchapter C of Chapter 271, Texas Local
Government Code, as amended("Chapter 271"),the following information has been provided by
the City (excludes $72,401,667 principal amount of outstanding debt obligations the City has
designated as self-supporting and which the City reasonably expects to pay from revenue sources
other than ad valorem taxes; provided, however, that in the event such self-supporting revenue
sources are insufficient to pay such debt service, the City is obligated to levy ad valorem taxes to
pay such debt obligations): (i)the principal amount of all outstanding debt obligations of the City
is $835,553,333; (ii) the current combined principal and interest required to pay all outstanding
debt obligations of the City on time and in full is $1,027,554,776; (iii) the maximum principal
amount of the Certificates of Obligation to be authorized is $94,000,000; (iv) the estimated
combined principal and interest required to pay the Certificates of Obligation to be authorized on
time and in full is $157,065,750; (v) the maximum interest rate for the Certificates of Obligation
may not exceed the maximum legal interest rate; and (vi) the maximum maturity date of the
Certificates of Obligation to be authorized is September 1, 2043. The ordinance designating
certain outstanding debt obligations of the City as self-supporting for purposes of Chapter 271 is
available upon request to the City at the address noted above.
CITY OF FORT WORTH, TEXAS
/s/Mattie Parker
Mayor
Schedule I
CITY OF FORT WORTH, TEXAS
Self-Supporting Debt
The City designates all or a portion of the following outstanding debt obligations of the City as
self-supporting debt for purposes of Subchapter C of Chapter 271, Texas Local Government
Code, as amended:
Combination Tax and Revenue Certificates of Obligation, Taxable Series 2013B;
General Purpose Refunding Bonds, Series 2014;
General Purpose Refunding Bonds, Series 2015;
General Purpose Refunding and Improvement Bonds, Series 2015A;
General Purpose Refunding and Improvement Bonds, Series 2016;
General Purpose Refunding and Improvement Bonds, Series 2020;
General Purpose Refunding Bonds, Taxable Series 2021; and
Combination Tax and Revenue Certificates of Obligation, Series 2021.
THE STATE OF TEXAS
COUNTIES OF TARRANT, DENTON, PARKER, WISE AND JOHNSON
CITY OF FORT WORTH
I, Jannette Goodall, City Secretary of the City of Fort Worth, in the State of Texas (the
"City"), do hereby certify that I have compared the attached and foregoing excerpt from the
minutes of the regular, open, public meeting of the City Council of the City held on February 14,
2023, and of the ordinance authorizing the publication and posting of notice of intention to issue
Certificates of Obligation, which was duly passed at said meeting, and that said copy is a true
and correct copy of said excerpt and the whole of said ordinance. Said meeting was open to the
public, and public notice of the time, place and purpose of said meeting was given, all as
required by Chapter 551, Texas Government Code, as amended.
In testimony whereof, I have set my hand and have hereunto affixed the seal of the City
of Fort Worth, this day of February, 2023.
�. ,ul-,'�. C' y Secretary of the
�O. G' ,�' i y of Fort Worth, Texas
(City )Seal
�XAS
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 02/14/23 M8C FILE NUMBER: M8C 23-0101
LOG NAME: 13NOTICE OF INTENTION-SERIES 2023 CERTIFICATES OF OBLIGATION
SUBJECT
(ALL)Adopt Ordinance Directing Publication of Notice of Intention to Issue Combination Tax and Revenue Certificates of Obligation in an Amount
Not to Exceed$94,000,000.00 for Improvements to the Fort Worth Convention Center and City Hall
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance,which directs publication of notice of the City's intention to issue
Combination Tax and Revenue Certificates of Obligation,Series 2023,in an amount not to exceed$94,000,000.00 for the purpose of paying all or
a portion of the City's contractual obligations incurred in connection with the(i)construction,improvement and equipment of City Hall,including
related street and sidewalk improvements,(ii)construction,improvement and equipment of the Fort Worth Convention Center,including related
street and sidewalk improvements,and(iii)payment of fiscal,engineering and legal fees incurred;approves the form of notice;directs notice to be
published in accordance with state law;and expresses official intent for the City to reimburse itself from proceeds of the debt sale,if debt is
issued,for project-related expenditures incurred prior to issuance.
DISCUSSION:
The purpose of this Mayor and Council Communication(M8C)is to take preliminary actions in preparation for the authorization and issuance of
Certificates of Obligation(C.O.$)for the purpose of paying all or a portion of the City's contractual obligations incurred in connection with the(i)
construction,improvement and equipment of City Hall,including related street and sidewalk improvements,(ii)construction,improvement and
equipment of the Fort Worth Convention Center,including related street and sidewalk improvements,and(iii)payment of fiscal,engineering and
legal fees incurred.
Under state law the City Council has the authority to issue C.O.s without explicit prior voter approval,provided that notice must be published and
the public provided an opportunity to petition for an election to be held. In addition,the City has established financial policies governing the
issuance of C.O.s that limit their use to finance public improvements in special circumstances and only after determining the City's ability to
assume additional debt. An example of special circumstances is a situation,such as the one posed here,where it would be more economical to
issue C.O.s rather than revenue bonds.
The projects qualify for C.O.financing under both state law and City policy.
The City anticipates the debt service on the portion of the C.O.s associated with the Phase I Convention Center project will be self-supporting and
entirely repaid from culture and tourism revenues.Debt service on the remaining portion of the C.O.s—used to fund City Hall improvements at the
former Pier One building—would be paid from Interest 8 Sinking(18S)taxes as the debt is being issued for renovating,improving,or equipping
existing buildings or facilities.Staff is recommending issuance of combination tax and revenue C.O.s with the City's taxing authority and a limited
pledge of surplus water and sewer revenues(not to exceed$1,000.00). Making a limited pledge of surplus water and sewer revenues meets state
law provisions that require identification of a revenue source when using revenue as a potential source of repayment.Pledging the City's tax
authority will allow the debt financing to achieve a more favorable interest rate.
Upon City Council approval,the City Manager shall publish the initial Notice of Intention on February 15 or 16,2023 and will post the notice on the
City's website at the same time.The second Notice of Intention will be published on the same day of the week following the first notice.
An ordinance to authorize issuance and delegate authority for the sale of the C.O.s is scheduled to be brought back for Council consideration on
April 11,2023.The C.O.s are intended to be sold on a competitive basis with closing and delivery of the C.O.funds anticipated to occur in the late
spring/early summer timeframe.
In addition to setting the form of notice and directing its publication,adoption of the attached ordinance would also serve as the City Council's
adoption of a formal statement of intent to reimburse preliminary costs for the project out of the issuance from the certificates.This aspect of the
ordinance does not obligate the City to sell C.O.s,but preserves the ability for the City to reimburse itself from tax-exempt debt proceeds if it
does.This mechanism allows projects to continue forward utilizing other funds until debt proceeds are available. Any expenses incurred against
an initial funding source would be repaid out of debt proceeds following issuance,sale,and receipt of proceeds.
A Form 1295 is not required because:This M8C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that approval of this recommendation will have no material effect on City funds.
Submitted for City Manager's Office bv: Reginald Zeno 8517
Oflainatina Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Anthony Rousseau 8338
Expedited