HomeMy WebLinkAboutResolution 5809-09-2023A Resolution
NO. 5809-09-2023
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE TRINITY
RIVER VISION, PHASE I
WHEREAS, the City of Fort Worth, Texas (the "City") is a home -rule municipality
and political subdivision of the State of Texas; and
WHEREAS, the City and the Tarrant Regional Water District ("TRWD") are
coordinating on the Trinity River Vision — Central City Project, with the City advancing costs
for certain ancillary subprojects such as the relocation of existing water and sewer
infrastructure and TRWD reimbursing such costs in annual installments correlating to
costs of work within that year; and
WHEREAS, the City wishes to retain the ability debt -finance costs of these
subprojects to the extent they are debt -eligible and not otherwise reimbursed by TRWD;
and
WHEREAS, the City expects to pay expenditures from available funds in
connection with the design, planning, acquisition and construction for the Trinity River
Vision, Phase 1 Project (the "Project") prior to the issuance of obligations by the City that
may finance some or all of the costs of the Project; and
WHEREAS, the City finds, considers, and declares that the reimbursement of the
City for the payment 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 Treasury Regulations, to reimburse itself for
such payments at such time as it issues obligations to finance the Project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT:
Section 1. The City reasonably expects debt, as one or more series of obligations,
may be issued or incurred by the City with an aggregate maximum principal amount not to
exceed $1,800,000.00 for the purpose of paying eligible costs, including some or all of the
aggregate costs of the Project.
Section 2. All costs to be reimbursed pursuant hereto will be capital expenditures.
No obligations will be issued by the City in furtherance of this Statement after a date
which is later than 18 months after the later of (1) the date the expenditures are paid or
(2) the date on which the property, with respect to which such expenditures were made, is
placed in service.
Section 3. The foregoing notwithstanding, no obligation will be issued pursuant to
this Statement more than three years after the date any expenditure which is to be
reimbursed is paid.
Adopted this 26t" day of September 2023.
ATTEST:
Jannette S. Goodall, City Secretary
MAYOR AND COUNCIL COMMUNICATION MAP
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WATER
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 09/26/23 M&C FILE NUMBER: M&C 23-0836
LOG NAME: 60WSTRAVA8KHAFUNDING
SUBJECT
(CD 2 and CD 9) Adopt a Resolution Expressing Official Intent for the City to Reimburse Itself with Proceeds of Future Debt and/or Payments from
the Tarrant Regional Water District for the Trinity River Vision — Central City Project, Adopt Appropriation Ordinance in the Amount of $1,518,400
to Fund Amendment No. 8 for Water and Sanitary Sewer Main Relocations for the Trinity River Vision - Central City Project and the Trinity Uptown
Service Area Phase 8 to Effect a Portion of Water's Contribution to and Amend the Fiscal Years 2023-2027 Capital Improvements Program,
Adopt Appropriation Ordinance in the Amount of $43,530.00 for Additional Project Costs for Storm Water and Franchise Utility Relocations for the
Trinity River Vision — Central City Project and Trinity Uptown Service Area Phase 8
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt and/or annual payments from
the Tarrant Regional Water District for the Trinity River Vision — Central City project;
2. Adopt the attached appropriation ordinance adjusting appropriations in the W&S Commercial Paper Fund by increasing appropriations in
the Trinity River Vision, Phase 1 project (City Project No. C00969) in the amount of $1,518,400.00 and decreasing appropriations in the
W&S Commercial Paper project (City Project No. UCMLPR) by the same amount to effect a portion of Water's Contribution to the Fiscal
Years 2023-2027 Capital Improvement Program;
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Specially Funded Projects Fund in the
amount of $43,530.00, from available funds, for the purpose of funding the Storm Water and Franchise Utility Relocations for the Trinity River
Vision — Central City project and Trinity Uptown Service Area Phase 8 project (City Project No. C00969); and
4. Amend the Fiscal Years 2023-2027 Capital Improvement Program.
DISCUSSION:
On June 13, 2023, the City Council authorized Amendment No. 8 in the amount of $1,418,400.00 and the Mayor and Council Communication
(M&C) authorized additional project costs for a total amount of $1,518,400.00 for the Water and Sanitary Sewer Main Relocations for the Trinity
River Vision - Central City project and the Trinity Uptown Service Area Phase 1 A — Bridge and Channel Relocations project (M&C 23-0507).
The fiscal information/certification for M&C 23-0507 stipulated that there were sufficient funds available in the project at the time to fund the
$1,518,400.00. However, subsequent to its approval, it was determined by Water Department staff that the funding, in fact, was not available. It is
therefore necessary to appropriate funding in the amount of $1,518,400.00 for Amendment No. 8.
In addition, $43,530.00 is necessary to cover additional project costs for the Storm Water and Franchise Utility Relocations for the Trinity River
Vision - Central City project and the Trinity Uptown Service Area Phase 1A — Bridge and Channel Relocations.
This project will have no impact on the Water Department's operating budget when complete.
This project is anticipated to be repaid from a series of annual reimbursements from the Tarrant Regional Water District (TRWD) as part of the
Trinity River Vision — Central City Project. In the event any bond -eligible costs are not fully reimbursed by TRWD, those costs would be anticipated
to be included in a future revenue bond issue for the Water & Sewer Fund. Available cash within the Water and Sewer portfolio and the City's
portfolio along with the appropriation authority authorized under the Callable Commercial Paper Program (CP) will be used to provide interim
financing for this project until repaid by the annual payments from TRWD and/or debt is issued. Once payment is received from TRWD and/or debt
associated with the unreimbursed portions of this project is sold, those funds will be used to reimburse the Water and Sewer portfolio and the
City's portfolio in accordance with the attached reimbursement resolution. Under federal law, debt must be issued within approximately three
years in order for these expenses to be reimbursable. Adoption of the attached resolution does not obligate the City to sell bonds, but preserves
the ability of the City to reimburse itself from tax-exempt bond proceeds.
It is the practice of the Water Department to appropriate its CIP plan throughout the fiscal year, instead of within the annual budget ordinance, as
projects commence, additional funding needs are identified, and to comply with bond covenants. The actions in the M&C will appropriate funds in
support of the Water's portion of the City of Fort Worth's Fiscal Years 2023-2027 Capital Improvement Program, as follows:
60WSTRAVA8KHAFUNDING
Capital
Revised
Fund
ENae
FY2023 CIP
Authority
Budget Change
FY2023
Name
Appropriations)
(Increase/Decrease)
Budet
g
Capital C00969
— — Trinity
Projects
Fund River
F. - I Phase 1
$0.00lThis M&C11 $1,518,400.00;1$1,518,400.00
Funding for the Trinity River Vision, Phase 1 project is depicted below:
11 Existing
Additional
Fund I
Appropriations
Appropriations
Project Total*
W&S Capital I
Projects - Fund ( $2,457,887.00
$0.00'
$2,457,887.00
56002
Specially Funded
Projects — Fund $5,809,127.941
$43,530.00
$5,852,657.94
39007
'
I
Water Capital -
$14,404,708.40
$0.00
$14,404,708.40
Fund 59601
Sewer Capital
Legacy- Fund $7,769,673.12;
$0.00i
$7,769,673.12,
59607
Stormwater
Capital Projects - $0.00'
$0.00
$0.00
Fund 52002 j
Water/Sewer Bond
2016 — Fund $6,855,400.00
$0.001
$6,855,400.001
56005
Water & Sewer
Bond 2015A — $6,167,422.45'
$0.00
$6,167,422.4&
Fund 56007
W&S Rev Bonds
Series 2021 — $443,312.00
$0.00
$443,312.00
Fund 56019
W&S Rev Bonds
Series 2022 — $407,022.00
$0.00
$407,022.001
Fund 56020 j
W&S Commercial
Paper — Fund $0.00'
$1,518,400.00
$1,518,400.00
56022
Project Total $44,314,552.91;
$1,561,930.001$45,876,482.9l
Funding is currently available in the Commercial Paper project within the W&S Commercial Paper Fund and in Unspecified -All Funds within the
Specially Funded Projects for the purpose of funding the Trinity River Vision, Phase 1 project.
Out of the $1,418,400.00 amendment amount, $1,175,653.00 (Water: $126,350.00; Sewer $1,049,303.00) is considered Trinity River Vision
(TRV)-related work, which is eligible for funding from Tax Increment Reinvestment Zone No. 9 (TRVA TIF) pursuant to the TRVA Project Plan.
Having met its $26.6 million commitment to the TRV Project, the City will be reimbursed the amount of $1,175,653.00 by the Tarrant Regional
Water District (TRWD) upon project completion, in accordance with the provisions of the executed Interlocal Agreement between the City and the
TRWD (City Secretary Contract No. 43425, as amended). Staff will record a receivable every month for reimbursable expenses, and the TRV
Program Manager in the Fort Worth Lab will be responsible for collecting the full reimbursement from TRWD from a series of annual
reimbursements.
This project is located in COUNCIL DISTRICTS 2 and 9.
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 funds are currently available in the Commercial Paper project within the W&S Commercial Paper Fund and in
the Unspecified -All Funds project within the Specially Funded Projects Fund, and upon approval of the above recommendations and adoption of
the attached appropriation ordinances, funds will be available in the W&S Commercial Paper Fund and the Specially Funded Projects Fund for the
Trinity River Vision, Phase 1 project. Prior to any expenditure being incurred, the Water and Transportation & Public Works Departments have the
responsibility of verifying the availability of funds.
Submitted for City Manager's Office b,)L. Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Liam Conlon 6824
Expedited