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Home My WebLink AboutOrdinance 26092-04-2023ORDINANCE NO. 26092-04-2023 AN ORDINANCE INCREASING �STIMATED REC�IPTS AND APPROPRIATIONS IN THE GENERAL DEBT SERVICE FUND, IN THE AMOUNT OF $11,835,000.00, SUBJECT TO THE SALE OF BONDS AND RECEIPT OF PROCEEDS, FOR THE PURPOSE OF PAYING COST OF ISSUANCE, WITH SUCH AMOUNT SUBJECT TO REDUCTION TO CONFORM TO FINAL FIGURES R�FLECTED IN BOND CLOSING DOCUMENTS, PROVIDING FOR A S�VERABILITY 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 flle vai•ious City departments for Fiscal Year 2022-2023 in the Budget of the City Manager, there shall also be increased estimated receipts and appropt•iations in the General Debt Service Fund in the amount of $11,835,000.00, subject to the sale of bonds and receipt of proceeds, for the purpose of paying cost of issuance, with such amount subject to reduction to conform to final iigures reflected in bond closing documents. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void foi• 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 or•dinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance 25773-09-2022 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 appropi•iations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This oi•dinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: � �,�� (�(r/, Assistant City Attorney ADOPTED AND EFFECTIVE: Api�il 11, 2023 CITY SECRETARY �n�,�., h .,�ac� � Jannette S. Goodall �,�.aoopn�� City Secretaiy ,�,,a�F FOR�,n�� p�� °��o 00000 0G � � (� o°o cy��Cj 0 o d � o o°�jd �pP� o0 o xd 0 0 �1 �/� ��o..---.,o° * .o' 'A City of Fort Worth, Mayor and Texas Council Communication DATE: 04/11/23 M&C FILE NUMBER: M&C 23-0252 LOG NAME: 13GENERAL PURPOSE BONDS SERIES 2023 SUBJECT (ALL) Adopt Ordinance Authorizing Issuance and Sale of City of Fort Worth, Texas General Purpose Bonds, Series 2023, in an Aggregate Principal Amount Not to Exceed $180,000,000.00; Establishing Parameters with Respect to Sale of the Bonds; Delegating Authority to Effect Sale of the Bonds by Competitive Bid or Negotiated Sale; Authorizing Escrow and Other Related Agreements; and Enacting Related Provisions; Adopt Appropriation Ordinance and Amend Fiscal Year 2023 Adopted Budget RECOMMENDATION: It is recommended that the City Council: 2. 3. Adopt the attached ordinance, which (i) authorizes the issuance of City of Fort Worth, Texas General Purpose Bonds, Series 2023, in an aggregate principal amount not to exceed $180,000,000.00, for the purpose of funding projects within the 2018 bond program, funding projects within the 2022 bond program, and paying the costs of issuance for the bonds; (ii) delegates to designated City officials authority to effect sale of the bonds by competitive bid or negotiated sale as determined most advantageous based on current market conditions - subject to certain parameters as set forth in the ordinance; (iii) authorizes execution of all related documents; (iv) provides for levy, assessment, and collection of a property tax sufficient to pay the interest on and principal of the bonds if other revenues are not otherwise available and appropriated for those payments; and (v) enacts other provisions related thereto; Adopt the attached appropriation ordinance increasing receipts and appropriations in the General Debt Service Fund in the amount of $11,835,000.00, subject to the sale of bonds and receipt of proceeds, for the purpose of paying cost of issuance, with such amount subject to reduction to conform to final figures reflected in bond closing documents; and Amend the Fiscal Year 2023 Adopted Budget. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to take actions associated with issuance and sale of tax-exempt Series 2023 General Purpose Bonds and appropriation of proceeds. This action will provide additional funding as part of the 2018 Bond Program Capital Improvement Program as well as provide funding as part of the 2022 Bond Program Capital Improvement Program. Adoption of the attached bond ordinance approves the issuance and sale of $83,165,000.00 in "new money" bonds from the 2018 Bond Program for the purpose of constructing streets and public mobility improvements; park and recreation improvements; library system improvements; fire safety improvements; and police facility improvements, with the remaining balance of the proceeds to be used to pay cost of issuance. The role of the current bond offering in the overall 2018 Bond Program is shown as follows: — __......_. Date of Amount Amount Previousiy Amount Now Unissued Election Authorized Purpose � Sold � Offered Balance May 05, 2018 $261,630,080.00 Streets and Mobility $207,400,00�0 $54,230,080� $0 May 05, 2018 $84,180,600 Parks and �— $66,165,000 $18,015,600 $0 Recreation May 05, 2018 $9,868,500 Library System I-- $5,000,000� $4,868,500� $0 May 05, 2018 $11,975,820 Fire Safety $9,000,000 $2,975,820 $0 May 05, 2018 $13,770,000 Animal Care and $13,770,000 $0 $0 Shelter May 05, 2018 $18,075,000 Police Facility $15,000,000 $3,075,000 $0 �—� $399,500,000 I $233,170,000 $83,165,000 $0 Because the City Council previously expressed the intent for the City to reimburse itself (Ordinance No. 23209-05-2018) and appropriated funds to provide interim financing for the 2018 Bond Program beginning with M&C G-19306 (Ordinance 23263-06-2018), no appropriation ordinance is needed for the new money part of this bond transaction. In addition to authorizing issuance of bonds for the 2018 Bond Program, the adoption of the attached bond ordinance also approves the issuance and sale of $85,000,000.00 in "new money" bonds from the 2022 Bond Program for the purpose of constructing streets and public mobility improvements; park and recreation improvements; library system improvements; and police and fire public safety facilities, with the remaining balance of the proceeds to be used to pay cost of issuance. The role of the current bond offering in the overall 2022 Bond Program is shown as follows: Date of Amount �p �ount Previously Amount Now Unissued Election Authorized Pur ose Sold Offered Balance May 07, 2022 �$369,220,000 Streets and Mobility __ �— $0 $68,774,000 $300,446,000 May 07, 2022 $123,960,000� Parks and Recreation � $0 $10,670,500 $113,289,500� May 07, 2022 � $12,500,000 Public Library _ � _ $0 � $712,500 $11,787,500 May 07, 2022 $39,320,0001 Public Safety —�� $0 $4,843,OOOI� $34,477,000 May 07, 2022 $15,000,000 Natural Area and Open� �0 $0 $15,000,000 Space �� $560,000,000 � �� $OI� $85,000,000 $475,000,000 Because the City Council previously expressed the intent for the City to reimburse itself (Ordinance No. 25515-05-2022) and appropriated funds to provide interim financing for the 2022 Bond Program beginning with the inception of the extendable commercial paper program (ECP) approved by M&C 22-0607 (Ordinance 25675-08-2022), no appropriation ordinance is needed for the new money part of this bond transaction. To date no ECP notes have been issued for any 2022 bond program projects. Staff anticipates that these bonds be sold through a competitive bid sale. However, to provide maximum flexibility to address ever-changing market conditions, the attached ordinances authorizes the City Manager or the Chief Financial Officer to conduct either a competitive or negotiated sale and 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: Bonds must be rated in one of the four highest generic rating categories (BBB or higher); the maximum maturity is March 1, 2043; maximum true interest cost of 6.00%; and maximum net effective interest rate, calculated per chapter 1204 of the Government Code, is 15.00%. Rating agency calls with Moody's and S&P will be conducted prior to the sale of the bonds. Ratings are anticipated to be received the week of May 1, 2023. Bids for the sale of the bonds are scheduled to be submitted on May 10, 2023. Subsequent to accepting the best bid and awarding the sale of the bonds, 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 bond proceeds for each of the identified purposes. The ordinance's structure accommodates variables associated with sale of debt under delegated authority such as the uncertain final interest rate to be achieved and the possibility of a premium or discount being associated with the sale of the bonds. 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. The action in this M&C will amend the Fiscal Year 2023 Adopted Budget as approved in connection with Ordinance 25773-09-2022, Section 3. Debt Service Funds, as listed on page 12 as follows: _ . . _ . __ _ Fund / Department Budget Category FY2023 Adopted Budget Budget Adjustment Revised FY2023 Budget General Debt Service Fund Revenues Property Tax $138,508,506.00 $138,508,506.00 Use of Money and Properly $3,450,000.00 $3,450,000.00 _ . Transferfrom CCPD $2,655,560.00 $2,655,560.00 Transferfrom TIRZ#14 Trinity Lakes $1,324,950.00 $1,324,950.00 . __ . Proceeds from series 2023 General Purpose bonds $11,835,000.00 $11,835,000.00 Total Revenues $145,939,016.00 $11,835,000.00 $157,774,016.00 Expenditures Financial Management Services (Debt Obligation) $145,939,016.00 $11,835,000.00 $157,774,016.00 Total Expenditures $145,939,016.00 $11,835,000.00 $157,774,016.00 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 approval of the above recommendations and adoption of the attached ordinances, the sale of the tax- exempt Series 2023 General Purpose Bonds will occur as required under the parameters set forth therein, that funds will be available in the General Debt Service Funds as appropriated, and will be available to repay the debt when due and payable. Submitted for City Manager's Office b� Reginald Zeno 8517 Originating Business Unit Head: Reginald Zeno 8517 Additional Information Contact: Anthony Rousseau 8338