HomeMy WebLinkAboutOrdinance 26068-04-2023ORDINANCE NO. 26068-04-2023
AN ORDINANCE INCREASING ESTIMATED REC�IPTS AND
APPROPRIATIONS IN THE TAX NOTE SERIES 2023 FUND IN THE AMOUNT
OF $20,000,000.00, FOR THE PURPOSE OF PAYING (n CONTRACTUAL
OBLIGATIONS INCURRED OR TO BE INCURRED FOR THE CONSTRUCTION
OF PUBLIC WORKS AND THE PURCHAS EOF MATERIALS, SUPPLIES,
EQUIPMETN, MACHINERY, BUILDINGS, LANDS, AND RIGHTS-OF-WAY OF
IDENTIFIED PROJECTS AND, (II) COST OF ISSUANCE OF THE NOT�S, 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 I2EMAINING 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 depa��tments for Fiscal Year 2022-2023 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Tax
Note Series 2023 Fund in the amount of $20,000,000.00, 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 with any excess cost of issuance funds remaining after closing being transfeired to the general
debt service fund.
Pro'ect Descri tion Amount
Fire A aratus Re lacement Cit Pro'ect No.104815 $ 13,720,000.00
Northwest Radio Tower Cit Pro'ect No. 104814 $ 4,600,000.00
Cost of Issuance $ 1,680,000.00
Total $ 20,000,000.00
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 r•emaining portions, sections, or parts of sections of this ordinance, which said i•emaining provisions shall
be and remain in full force and effect.
City of Fort Worth,
Mayor and
DATE: 04/11/23
Texas
Council Communication
M&C FILE NUMBER: M&C 23-0275
LOG NAME: 13TAX NOTES SERIES 2023
SUBJECT
(ALL) Adopt Ordinance Authorizing Issuance and Sale of City of Fort Worth Tax Notes, Series 2023 in an Aggregate Principal Amount Not to
Exceed $20,000,000.00 and Enacting Other Provisions Related to the Subject; and Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the Ciry Council:
1. Adopt the attached ordinance authorizing the issuance and sale of Tax Notes, Series 2023, in an aggregate principal amount not to exceed
$20,000,000.00; authorizing execution of all related documents; and approving the sale of the notes by competitive or negotiated sale as
determined most advantageous based on current market conditions and subject to meeting certain parameters, as set forth in the ordinance;
providing for 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 Series 2023 Fund in the amount of
$20,000,000.00, 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 2023 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 2023 Tax Notes is $20,000,000.00. Proceeds from sale of the notes
will be used to purchase fire apparatus and equipment, finance the construction of the Northwest Radio Tower, and pay for costs of issuance
related to the sale of the Notes.
The schedule of project costs listed below:
Project Description � Amount
Fire Apparatus Replacement � $13,720,000.00
Northwest Radio Tower $4,600,000.00
Cost of Issuance $1,680,000.00
Total $20,000,000.00
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 Properry 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 2024.
The ordinance provides delegated authority to the City Manager and Chief Financial Officer, individually, to effect the sale of notes. This includes
authority to seek not only competitive bids for the sale of the Notes authorized, but also a negotiated sale conducted as either a public offering
negotiated through a purchase agreement with Underwriters. Staff is recommending that these notes be sold with the City Manager or the Chief
Financial Officer having authority to approve the terms of the sale so long as those terms come within the parameters set forth in the Council-
adopted ordinance. Key parameters include that the Notes must be rated in one of the four highest generic rating categories (BBB or higher); the
maximum maturity is March 1, 2030; and the maximum net effective interest rate is 6.00%.
Rating agency calls with Moody's and S&P will be conducted prior to the sale of the notes. Ratings are anticipated to be received the week of May
1, 2023. Bids for the sale of the notes are scheduled to be submitted on May 10, 2023. Subsequent to accepting the best bid and awarding the
sale of the notes, the City will seek approval of the debt transactions from the Texas Attorney General with an estimated closing date of June 8,
2023.
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 2023 Tax
Notes will proceed as necessary to provide funding in the Tax Notes Series 2023 Fund for the 2023 FD Apparatus Tax Note, NW Radio Tower and
Cost of Issuance projects. 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 b� Reginald Zeno 8517
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Anthony Rousseau 8338
Expedited