HomeMy WebLinkAboutOrdinance 17324-12-2006ORDINANCE NO. 17324-12-2006
DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE
COMBINATION TAX AND PARKING REVENUE CERTIFICATES OF
OBLIGATION, SERIES 2007; AND ORDAINING OTHER MATTERS RELATING TO
THE SUB7ECT
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 to 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 wi11 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
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 attached hereto and marked "Exhibit A" is a form of notice, the farm 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 imprave~xaents to be financed with proceeds from the
proposed Certificates of Obligation are to be used for the purposes described in the attached Notice
of Intention.
Section 4. That all costs 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.
5. 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 l9th day of December, 200b.
TTEST:
City Secretary, Cit of
Port Worth, Texas
APP OVED AS TO FORM:
City Attorney, City
Fort Worth, Texas
(SEAL)
EXHIBIT A
NOTICE OF INTENTION TO ISSUE
COMBINATION TAX AND PARKING REVENUE
CERTIFICATES Op' OBLIGATION
NOTICE IS HEREBY GIVEN that it is the intention of the City Council of the City of k'ort
Worth, Texas, to issue one ar mare series of the interest bearing certificates of obligation of the City
to be entitled "City of fort Worth, Texas Combination Tax and Parking Revenue Certificates of
Obligation", for the purpose of paying contractual obligations to be incurred by the City, to-wit, the
construction and equipping of a City parking garage in the vicinity of the fort Worfh Convention
Center; and the payment of fiscal, engineering and legal fees incurred in connection therewith. The
City 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
o'clock, p.m., an the 9th day of .lanuary, 2007. The maximum amount of Certificates of Obligation
indebtedness that may be authorized to be sold on said date for such purposes described above is
$23,000,000. The City Council presently proposes to provide for payment of said series (one ar
more) of Certificates of Obligation from the levy of ad valorem taxes and from a pledge of net
revenues derived from the aperatian of the parking garage to be constructed with the proceeds of the
Certificates of Obligation.
CITY OF FORT WORTH, TEXAS
Isl Mike Moncrief
Mayor
THE STATE OF TEXAS
COUNTIES OF TARRANT AND DENTON
CITY Ob' FORT WORTH
I, Marty Hendrix, City Secretary of the City of Fort Worth, in the State of Texas, do hereby
certify that 1 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 publicatian 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
GovernRxaent Code, as amended.
Zn testimony whereof, I have set my hand and have hereunto affixed the seal of said City of Fort
Worth, this 19th day of December, 200b.
thJ~'
City Secretary o e
City of Fort Worth, Texas
(SEAL)
Cif ~~ F®rt t~h, Texas
Mayor and Council Communication
RI=COMI4AENDATION:
It is recommended that the City Council:
1. Adapt the attached ordinance directing the publication of notice of intention to issue up to $23,aaa,a00.aa
Combination Tax and Parking Revenue Certificates of Obligation, Series 2a07;
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 form attached
hereto, in a newspaper of general circulation in the City of Fort Worth, Texas, far 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. Authorize the proceeds be used for the construction and equipping ofi a parking garage in the vicinity of
the Fart Werth Convention Center; and the payment of fiscal, engineering and legal fees as 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. One such criterion is
the construction of a capital improvement that is arevenue-producing facility, but due to the nature of the
project or the time it takes for the facility to become operational and produce revenues, the improvement
may not generate sufficient revenues throughout the life of the improvement to support the indebtedness
secured solely by the revenues to be produced by the improvement.
The proposed City Parking Garage in the vicinity of the Fort Worth Convention Cen#er qualifies as such a
fiacility eligible far C.O. financing. The maximum amount of the C.D.s sold shall not exceed
$23,aaa,aaa.aa.
After Council approves this M&C and ordinance, the City Manager shall publish the initial Notice of Intent no
later than December 25, 2008. The second Notice will be published the same day of the week following the
first notice.
Counci[ will be asked to approve the sale of the certificates and adopt the related ordinance vn January 9,
2007. The certificates will be sold on a competitive basis through placement with a local bank. It is
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anticipated that the closing and deiivery of the C.O. funds will occur on 1=ebruary 13, 2007.
FISCAL INFORMATIONIC~RTIFICATION.
The Finance Director certi#ies that funds will be available upon completion of fhe sale, closing and
delivery of the $23,000,000.00 Combinatian Tax and Parking Revenue Certificates of Obligation, Series
2007 far the project.
TO FundlAccountlCenters FROM FundlAccountlCenters
Sulamitted fear Cit Mann er°s Office b Karen Montgomery (fi222)
Oriaietating Departet~ent I-lead: Bridgette Garrett (8518)
Additional Infarrnation Contact: Sandy Oliver (7371)
Skipper Shook (2438}
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