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HomeMy WebLinkAboutOrdinance 17323-12-2006ORDINANCE NO. 17323-12-200fi DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE COMBINATION TAX AND LIMITED SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 2007; AND ORDAINING OTHER MATTERS RELATING TO THE SUBJECT WHEREAS, the City of Fort Worth expects to pay expenditures in connection with the design, planning, acquisition and construction of the projects described in Exhibit A to this Ordinance prior 1o the issuance of the Certificates of Obligation hereinafter described; and WHEREAS, the City 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 hereinafter described Certificates of Obligation; and WI-IEREAS, it is hereby officially found and determined that the x~neeting at which this Ordinance was considexed was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Chapter 5S 1, Texas Government Code. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: Section 1. That attached hereto and marked "Exhibit A" is a form of notice, the form and substance of which are hereby passed and approved. Section 2. That the City Manager shall cause said notice to be published, in substantially the form attached hereto, in a newspaper of general circulation in the City of Fort Worth, Texas, for two consecutive weeks, the date of the first publication to be before the fourteenth day before the day tentatively proposed for authorizing the issuance of the Certificates of Obligation as shown in said notice. Section 3. That the facilities and improvements to be financed with proceeds from the proposed Certificates of Obligation are to be used for the purposes described in the attached Native of Intention. Section 4. That all casts to be reimbursed pursuant to this Ordinance will be capital expenditures; the proposed Certificates of Obligation shall be issued within 1 S 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 S. That this Ordinance shall be effective immediately from and after its passage in accordance with the provisions of Section 2 of Chapter 25 of the Charter of the City, and it is accordingly so ordained. PASSED AND APPROVED this the 19th day of December, 2QQb. ATTEST: City Secretary, Ci of Fort Worth, Texas APPROVED AS TO FORM: i' City Attorney, City Fort Worth, Texas EXHIBIT A NOTICE OF INTENTION TO ISSUE COMBINATION TAX AND LIMITED SURPLUS REVENUE CERTIFICATES OF OBLIGATION NOTICE IS I~EREBY GIVEN that it is the intention of the City Council of the City of Fort Worth, Texas, to issue one ar more series of the interest bearing certificates of obligation of the City to be entitled "City of Fort Worth, Texas Combination Tax and Limited Surplus Revenue Certificates of Obligation", for the purpose a£ paying contractual obligations to be incurred by the City, to-wit, the design costs, land acquisition, construction and equipping of (i) fire stations throughout the City, (ii) the Nashville police station, and (iii) a public health center owned and operated by the City; the construction of street improvements {including freeway interchanges, and arterial access) and related drainage and sidewalk improvements throughout the City, and the acquisition of related traffic and camznunicatians equipment; the acquisition of equipment with respect to traffic safety programs of the City; the reconstruction of streets and related drainage and sidewalk improvements throughout the City; and the payment of f seal, engineering anal legal fees incurred in connection therewith. The City Council tentatively proposes to authorize the issuance of said series (one or mare} of Certificates of Obligation at its regular meeting place in the City Hall at a meeting to commence at 7 o`clock, p.m., on the 9th day of Tanuary, 2007. The maximum amount of Certificates of Obligation indebtedness that may be authorized is be sold on said date for such purposes described above is $42,325,000. The City Council presently proposes to provide for payment of said series (one or amore) of Certif cafes 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. CITY OF FORT WORTH, TEXAS Is/ Mike Moncrief Mayor THE STATE OF TEXAS COUNTIES OF TARRANT AND DENTON CITY OF FORT WORTH I, Marty Hendrix, City Secretary of the City of Fort Worth, in the State of Texas, 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 of Fort Worth, Texas held on December 19, 2006, and of the ordinance authorizing the publication 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 S S 1, Texas Government Code, as amended. In testimony whereof, I have set my hand and have hereunto affixed the seal of said City of Fort Worth, this 19th day of December, 2006. City Secretary o e City of Fort Worth, Texas (SEAL) ~- ~f F®rf ®~fh, T°e~as Mayor and Council Communication COUNCIL ACTION: Approved on 12!1912006 -Ordinance No. 17323-12-2006 DATE: Tuesday, December 19, 2006 LOG NAIVIE: 03002007 REFERENCE NO.: G-15539 SUBJECT`: Directing Publication of Notice of Intention to Issue Combination Tax and Limited Surplus Revenue Certificates of Dbligation, Series 2007; and Ordaining Other IVlatters Relating to the Subject RECOtUIfV1EN©ATION: It is recommended that the City Council: 1. Adapt the attached ordinance directing the publication of notice of intention to issue up to $42,325,000.00 Combination Tax and limited Surplus Revenue Certificates of Obligation, Series 2007; 2. Approve the form of notice marked "Exhibit A" and attached to the ordinance; 3. Authorize the City Manager to cause said notice to be published, in substantially the farm attached hereto, in a newspaper of general circulation in the City of Fort Worth, Texas, for two consecutive weeks, the date of the first publication to be before the fourteenth day before the day tentatively proposed for authorizing the issuance of the Certificates of Obligation as shown in said notice; and 4. Ordain that the facilities and improvements to be financed with proceeds from the Certificates of Obligation, Series 2007, are to be used for the purposes described in the attached Notice of Intention. DISCUSSION: Under the laws of the State of Texas, the City Council has the authority to issue certificates of obligation (C.O.s), a form of debt, without prior voter approval. The City, however, has established financial policies governing the issuance of such debt. C,O.s may only be used to finance public improvements in special circumstances and only after determining the City's ability to assume additional debt. Some of the special circumstances include: The Cost overruns on a general obligation bond-financed capital improvement have occurred; * "Emergency" conditions require a capital improvement to be funded rapidly; * Financial opportunities to leverage funds from other entities and reduce the City's capital cost for a community improvement; and ~` The timing of the construction of a capital improvement and the expense of calling a bond election far a single proposition would, in the opinion of staff and with the approval of the City Council, warrant the issuance of C.O.s to finance the capital improvement. The proposed $42,325,000.00 Series 2007 C.O.s are part of the Critical Capital Needs Program identified by staff and presented to City Council on Monday, December 11, 2000. $2,738,000 for Expedited Capital Project Delivery identified for funding from this C.O. is not eligible for debt financing. The funds far this item will be used instead for streets and transportation infrastructure. Logname: 03002007 Page 1 of 2 The $42.3 million will fund design casts, land acquisition, construction and equipping of (i) fire stations throughout the City, {ii) the Nashville police station, and (iii) a public health center owned and operated by the City; the construction of street improvements {including freeway interchanges, and arterial access) and related drainage and sidewalk improvements throughout the City, and the acquisition of related traffic and communications equipment; the acquisition of equipment with respect to traffic safety programs of the City; the reconstruction of streets and related drainage and sidewalk improvements throughout the City; and the payment of fiscal, engineering and legal fees incurred. After Council approves this M&C and ordinance the City Manager shall publish the initial Notice of Intent no later than December 25, 2006. The second Notice will be published the same day of the week following the first notice. Council will be asked to approve the sale of the certificates and adopt the related ordinance on .lanuary 9, 2007. The certificates will be sold on a competitive basis through placement with a Incal bank. It is anticipated that the closing and delivery of the C.O. funds will occur on February 13, 2007. FISCAIL INFORIV[ATIONICERTIFICATION: The Finance Director certifies that funds will be available upon completion of the sale, closing and delivery of the $42,326,000.00 Combination Tax and Limited Surplus Revenue Certificates of Obligation, Series 2007, for the projects listed in the Notice of Intention TO 1=undlAccountlCenters FROM FundlAccountlCenters Submitted for City Manac,~er`s Office by: Karen Montgomery (6222) Orictinatina C7epartment Head: Bridgette Garrett (8518} Additional Information Contact: Sandy Oliver (7371) Skipper Shook (2438) Logname: 03CO2Q07 Page 2 of 2