HomeMy WebLinkAboutOrdinance 26921-05-2024y
Ordinance No. 26921-05-2024
AN ORDINANCE INCREASING APPROPRIATIONS IN THE 2022 BOND
PROGRAM FUND IN THE AMOUNT UP TO $160,190,000.00, SUBJECT TO THE
SALE OF GENERAL PURPOSE, SERIES 2024 BONDS, WITH SUCH AMOUNT
SUBJECT TO REDUCTION TO CONFORM TO FINAL FIGURES REFLECTED
IN BOND CLOSING DOCUMENTS, FOR EXPENDITURES ASSOCIATED WITH
2022 BOND PROJECTS; 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 departments for Fiscal Year 2023-2024 in the
Budget of the City Manager, there shall also be the following changes in the 2022 Bond Program Fund: an
increase in appropriations in the amount up to $160,190,000.00, subject to the sale of general purpose, series
2024 bonds, with such amount subject to reduction to conform to final figures reflected in bond closing
documents, for expenditures associated with 2022 bond projects.
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 remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall
be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance 26453-09-2023 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 appropriations, in which instance said conflicting provisions of
said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY
3*-T ?"."P
Assistant City Attorney
ADOPTED AND EFFECTIVE: May 14, 2024
Jannette S. Goodall
City Secretary
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Authority from Bond Book 4/30/24
2022 Bond Program
OVERVIEW OF PROPOSITIONS
Fort Worth Proposition A: Streets & Mobility Infrastructure Improvements
Fort Worth Proposition B: Park and Recreation Improvements
Fort Worth Proposition C: Public Librarylmprovements
Fort Worth Proposition D: Police and Fire Public Safety Improvements
Fort Worth Proposition E. Natural Area and Open Space
2022 BOND PROGRAM TOTAL
$369, 218, 300
$123, 955, 500
$I2, 505, 200
$39,321, 000
$15, 000, 000
$560,000,000
ORDINANCE NO.2551.5-05-2022
AN ORDINANCE FINDING THAT THE SPECIAL
ELECTION CONDUCTED ON MAY 7, 2022, ON THE
QUESTION OF THE ISSUANCE OF AD VALOREM TAX
SUPPORTED PUBLIC SECURITIES WAS DULY AND
LAWFULLY HELD; DECLARING THE RESULTS OF THE
ELECTION; AND EXPRESSING OFFICIAL INTENT TO
REIMBURSE EXPENDITURES WITH PROCEEDS OF
FUTURE DEBT
WHEREAS, on February 8, 2022, the City Council of the City of Fort Worth adopted Ordinance
25326-02-2022 Ordering an Election by the Qualified Voters of the City of Fort Worth, Texas, on May 7,
2022, on the Question of the Issuance of Ad Valorem Tax Supported Public Securities for the 2022 General
Obligation Debt Program; and
WHEREAS, all circumstances surrounding calling of election, giving of notice (including, but not
limited to, dissemination of voter information documents conforming with Section 1251.052(b) of the
Texas Government Code), holding of election, and return ofballots have been legally had and done; and
WHEREAS, a tabulation of the votes for and against each measure in each precinct and the sum
of the precinct totals has been prepared in accordance with State law; and
WHEREAS, more than fifty percent of the votes cast with regards to Propositions A, B, C, D, and
E were cast in favor of the listed propositions, meaning that public securities outlined in the listed
propositions may be issued in accordance with State law; and
WHEREAS, the City expects to pay expenditures from available funds in connection with the
public -securities -funded capital improvement program representing the listed propositions approved with
more than fifty percent of the votes cast (collectively, the "Project") prior to the issuance of the securities
by the City in connection with the financing ofthe 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 public securities to
finance the Project.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS THAT:
SECTION 1.
The City Council officially finds and determines that the election on May 7, 2022 was duly and
lawfully held.
Ordinance - 2022 Public Securities Election Canvass Pagel of 4
SECTION 2.
The City Council officially finds and determines that the following votes were cast at the election
held on May 7, 2022, at which election the following Propositions were submitted for consideration by
the resident, qualified electors of the City of Fort Worth who voted at the election:
PROPOSITION A
THE ISSUANCE OF $369,218,300 OF PUBLIC SECURITIES FOR
STREETS AND MOBILITY INFRASTRUCTURE
IMPROVEMENTS AND THE IMPOSITION OF TAXES
SUFFICIENT TO PAY THE PRINCIPAL AND INTEREST ON THE
PUBLIC SECURITIES
Tarrant County Denton County Parker County Total
FOR 19,671 261 37 19,969
AGAINST 9,514 244 19 9,777
PROPOSITIONI)
THE ISSUANCE OF $123,955,500 OF PUBLIC SECURITIES FOR
PARK AND RECREATION IMPROVEMENTS AND THE
IMPOSITION OF TAXES SUFFICIENT TO PAY THE PRINCIPAL
AND INTEREST ON THE PUBLIC SECURITIES
Tarrant County Denton County Parker Coun Total
FOR 17,893 219 32 18,144
AGAINST 11,148 294 23 11,455
PROPOSITION C
THE ISSUANCE OF $12,505,200 OF PUBLIC SECURITIES FOR
PUBLIC LIBRARY IMPROVEMENTS AND THE IMPOSITION OF
TAXES SUFFICIENT TO PAY THE PRINCIPAL AND INTEREST
ON THE PUBLIC SECURITIES
Tarrant County
Denton County
Parker County
Total
FOR 17,639
231
25
17,895
AGAINST 11,335
269
30
11,634
Ordinance - 2022 Public Securities Election Canvass Page 2 of 4
FOR
AGAINST
FOR
AGAINST
PROPOSITION D
THE ISSUANCE OF $39,321,000 OF PUBLIC SECURITIES FOR
POLICE AND FIRE PUBLIC SAFETY IMPROVEMENTS AND
THE IMPOSITION OF TAXES SUFFICIENT TO PAY THE
PRINCIPAL AND INTEREST ON THE PUBLIC SECURITIES
Tarrant Coun Denton County Parker Conn Total
21,581
344
42
21,967
7,498
155
14
7,667
PROPOSITION E
THE ISSUANCE OF $15,0009000 OF PUBLIC SECURITIES FOR
ACQUISITION, SITE PREPARATION, AND ACCESSIBILITY
ENHANCEMENTS FOR NATURAL AREA AND OPEN SPACE
IMPROVEMENTS AND THE IMPOSITION OF TAXES
SUFFICIENT TO PAY THE PRINCIPAL AND INTEREST ON THE
PUBLIC SECURITIES
Tarrant County
16,557
12,251
Denton County
204
290
SECTION 3.
Parker County Total
31 16,792
24 12,565
The City Council officially finds, determines, and declares the result of said election to be
that the aforesaid Propositions A, B, C, D, and E so submitted that are shown above have received a
favorable majority vote; that such Propositions A, B, C, D, and E therefore have passed; that the
tax -supported public securities authorized by the aforesaid Propositions A, B, C, D, and E may be
issued; and that the ad valorem tax supporting said public securities may be levied and pledged
by the City within the limits prescribed by law.
SECTION 4.
The City intends for the obligations approved by the voters at the election to be issued as
tax-exempt obligations under the provisions of the Internal Revenue Code of 1986. The City
expects to pay expenditures from available funds in connection with the design, planning,
acquisition, and construction of the projects described in the propositions approved by the voters
prior to the issuance of obligations authorized at the election. The City Council hereby declares
Ordinance - 2022 Public Securities Election Canvass Page 3 of4
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 obligations authorized by the voters at the
election for such purpose. All expenditures to be reimbursed will be capital expenditures; the
obligations authorized to be issued by the voters at the election shall be issued within 18 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, no obligations will be issued on a date that is more than three years after the date
any expenditure which is to be reimbursed is paid.
SECTION 5.
This ordinance shall take effect upon adoptio»
Mayor of the City of Fort Worth
AT I'E
.
0
Jan ette S. Goodall, City ecr tary
APPR VED AS TO FORM AND LEGALITY:
Leann Guzman, City Attorney
ADOPTED AND EFFECTIVE: Mqy 17 2022
Ordinance - 2022 Public Securities Election Canvass Page 4 of 4
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 05/14/24 M&C FILE NUMBER: M&C 24-0438
LOG NAME: 032022GO BOND PROGRAM SERIES 2024 APPROPRIATION
SUBJECT
(ALL) Adopt Appropriation Ordinance Increasing Appropriations in the 2022 Bond Program Fund in the Amount Up to $160,190,000.00, for the
Purpose of Funding Expenditures Associated with 2022 Bond Projects; and Amend the Fiscal Years 2024-2028 Capital Improvement Program
(2022 Bond Program)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached appropriation ordinance increasing appropriations in the 2022 Bond Program Fund, in the amount up to
$160,190,000.00, subject to the sale of general purpose, series 2024 bonds, with such amount subject to reduction to conform to final
figures reflected in bond closing documents, for expenditures associated with 2022 Bond Program projects; and
2. Amend the Fiscal Years 2024-2028 Capital Improvement Program.
DISCUSSION:
The purpose of the Mayor and Council Communication (M&C) is to appropriate the proceeds of the recent bond sale to allow projects to keep
moving forward until the next bond sale in spring of 2025.
Background
In May of 2022, Fort Worth voters approved issuance of $560,000,000.00 in bonds across five propositions.
Prior to 2014, the City would issue voter -authorized bonds in advance, which often resulted in large amounts of proceeds sitting idle in bank
accounts for projects that were not yet ready to move forward -- an approach that resulted in a more complicated arbitrage rebate process and the
incurring of borrowing costs before bond dollars had been put to work. Beginning with the 2014 Bond Program, the City began a process of
issuing bonds in arrears by (1) adopting an official reimbursement -intent statement, (2) utilizing available pooled cash balances to commence
work, and (3) issuing the bonds in a series of annual installments with proceeds used to repay the interim funding source and provide a modicum
of funding for the upcoming year's projects.
Given the size of the 2022 Bond Program, it was determined that pooled cash alone would be insufficient to facilitate the in -arrears approach. So,
staff recommended and City Council approved a $300,000,000.00 Extendable Commercial Paper (ECP) program as a liquidity facility (M&C 22-
0607) with the resulting $300,000,000.00 in appropriation authority allocated among the five propositions (M&C 22-0599) and subsequently
readjusted (M&C 22-0772 and M&C 22-0772R).
The General Purpose Bonds, Series 2023 were authorized for sale on April 11, 2023 in a total amount of $85,600,000.00 (M&C 23-0252), but the
M&C omitted the ordinance to appropriate those funds. The appropriation of proceeds was authorized by Mayor and Council Communication on
August 08, 2023 (M&C 23-0611).
Subsequently, General Purpose Bonds, Series 2024 were authorized for sale on April 23, 2024 in an aggregate principal amount not to exceed
$185,000,000.00, (M&C 24-0313), which includes an amount of $24,810,000.00 to cover the cost of issuance and and any related premium, with
such amount subject to reduction to conform to final figures reflected in the bond closing documents. Bids for the sale of the bonds are scheduled
to be submitted on May 21, 2024. 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 18, 2024.
The actions of this M&C are intended to appropriate the proceeds from the sale of the Series 2024 General Purpose Bonds and make necessary
adjustments to maximize all available resources.
The following chart depicts how the funds from the previous and recent sale are being appropriated:
Current
2023
2024
Amount
Revised ECP
Appropriation
Appropriation
Unissued
Purpose
Authorized
Appropriation
(Bond)
(Bond)
Balance
Streets
and
Mobility
1$369,218,300.00�$229,831,300.00
L$68,774,000.00
$56,404,007.00
$244,040,293.00
Parks and
Recreation
l!23,955,500.0D
$33,886,000.00
$11,270,500.00
$78,798,079.00
$33,886,921.00
Public
Library
$12,505,200.00
$1,681,700.00
$712,500.00
$T0,110,991,00
$T,68T,709.00
Public
Safely
$39,321,000.00
$19,601,000.00
$4,843,000.00
$14,876,923.00
$19,601,077.00
Natural
Area and
Open
Space
$15,000,000.00
$15,000,000.00
$0.00
$0.00
$15,000,000.00
TOTAL
$560,000,000.00
$300,000,000.00
$85,600,000.00
$160,190,000.00
$314,210,000.00
`Table above propositions A, B, C, and D exhibit slight variances in the M&C table from 13GENERAL PURPOSE BONDS SERIES 2024 (M&C
24-0313) due to the rounded number presented in the bond sale M&C.
The action in this M&C will amend the Fiscal Year 2024-2028 Capital Improvement Program as approved in connection with Ordinance 26453-09-
2023. Attached in Exhibit A are the projects and funding to support this appropriation.
The 2022 Bond Projects are located in ALL COUNCIL DISTRICTS,
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION I CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds
will be available in the 2022 Bond Program Fund for the specified projects. Prior to an expenditure being incurred, the Transportation and Public
Works, Park and Recreation, Library, Police, Fire, and Financial Management Services Departments have the responsibility of verifying the
availability of funds.
Suhmitted for Cily Mana ees Office h . Mark McDaniel 6316
Originating Business Unit Head: Christianne Simmons 6222
Additional Information Contact Ashley Clement 8505
Expedited