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Home My WebLink AboutIR 7247 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7747 p-1 January 5, 1988 _ �oF FOPP41 To the Mayor and Members of the City Council Subject: BOND SALES FOR 1988 It is proposed that two bond sales be conducted on March 8, 1988. One sale of General Obligation (GO) Bonds for $37,855,000 and another of Revenue Bonds for $18,875,000. A GO bond sale is being proposed for March to permit departments to proceed with approved improvements. Members of City staff participated in five citizen meetings during the past two months, one meeting in each of five Council Districts. At each meeting, citizens urged the staff to proceed without delay on construction of the capital improvements approved in the 1986-88 CIP. They pointed out that Target Area streets were neither constructed nor reconstructed in the first one and one-half years of a three year bond program. They expressed a special interest in street and park improvements. Although some citizens expressed a desire to move rapidly with the bond program, staff is recommending that we continue with the program at a normal pace. The authorized but unissued GO bonds total $82,523,000, of which $74,017,000 is from the 1986-88 CIP. The staff recommendation is to sell about half (46%) of the authorized but unissued bonds, $37,855,000. This recommendation would extend the 1986-88 Capital Improvement Program from three years to four years. The current bond status for all General Obligation bonds is indicated in Table 1, below. Table l GENERAL OBLIGATION BOND STATUS (0001S OMITTED) AMT PREV. THIS AFTER PROPOSITION CIP AUTH ISSUED SALE SALE Streets 1982-84 77,285 68,779 250 8,256 Streets 1986-88 115,600 57,403 33,223.5 24,973.5 Park and Recreation 1986-88 16,650 9,950 3,771.5 2,928.5 Public Safety 1986-88 5,750 4,500 610 640 Library 1986-88 10,000 2,130 -0- 7,870 Total 225,285 142,762 37,855.0 44,668.0 In addition to the reason cited above, a bond sale is recommended for March, 1988, for the following reasons: 1. Market Conditions, 2. Availability of required financial reports and 3. Capital Project Schedule, as determined by responsible departments. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7247 p.2 To the Mayor and Members of the City Council sr Subject: BOND SALES FOR 1988 The City's Financial Advisors and staff do not expect any meaningful variations in the municipal bond market over the next several months. Therefore, March 8, 1988 is recommended as the date for both, a General Obligation and Revenue Bond sale. The Fort Worth Water Department proposes a combined water and sewer revenue bond sale of $18,875,000 for 1988. From this revenue bond sale $12,975,000 will fund water capital projects including $2.6m to be expended on the Eagle Mountain Lake Water Treatment Plant land acquisition and transmission mains costs, $3.5m for the North Fort Worth Development, $2.4m for pumping and storage facilities, $2.975m for other mains, $1 million for participation in developer projects, and .5 million for engineering and administrative costs. The 1988 revenue bond sale will also fund $5,900,000 in sewer capital projects including 5.2m for odor control, sludge dewatering and electrical modification at Village Creek. The remaining funds are to meet engineering and administration costs and participation in developer projects. op" A list of Projects to support each sale is at Attachment A. Projected debt service requirements and projected tax rates are at Attachment B. glas a an C ity Manager a City Manager DH:clb Attachments -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS ATTACHMENT A 1. The following projects from the 1986-88 CIP support the proposed GO bond sale for $37,855,000: STREET AND STREET RELATED IMPROVEMENTS Street Construction/Reconstruction 19,025,000 Drainage 460,000 Misc. Flood Control 40,000 Marine Creek Park Detention Pond 300,000 Eisenhower-Rosedale Drainage System 250,000 Colonial Parkway Drainage 1 ,000 Sub-Total 1,051,000 Misc. R-O-W and Street Related Improvements Sidewalks 125,000 Park Drives, Etc. 162,500 Sub-Total 287,500 Engineering, City Projects 3,000,000 OW Street Lighting and Traffic Signals Street Lighting 450,000 Traffic Signals 400,000 Sub-Total 850,000 New Development Streets and Storm Drains in New Additions 5,735,000 Park Streets in New Additions 415,000 Design Engineering in New Additions 360,000 City Engineering 2,500,000 Sub-Total 9,010,000 Meacham-Burlington Tracks Overpasss-Eng. Only 250,000 (1982-84 CIP) STREETS TOTAL $ 33,473,500 PARK AND RECREATION IMPROVEMENTS New Inner-City Parks 200,000 Athletic Fields 362,500 General Park Development 213,000 Neighborhood Parks Buck Sansom 100,000 Marine Creek 40,000 Meadows West 60,000 Eastbrook 45,000 Oakland 45,000 Sandybrook 40,000 Sycamore 280,000 Eastover 40,000 Fairfax 30,000 Hallmark 46,000 Marine Creek Lake 60,000 Highland Hills 50,000 Carter 35,000 Bluebonnet Circle 50,000 Sub-Total 921,000 Recreation Centers Haws 340,000 Southwest 425,000 Highland Hills 765,000 Mid-South 70,000 Sub-Total 1,600,000 Forest Park Swimming Pool 475,000 PARK AND RECREATION TOTAL 3,771,500 OP,k PUBLIC SAFETY IMPROVEMENTS Fire Station #35 (Southwest) Columbus Trail. 610,000 PUBLIC SAFETY TOTAL 610,000 TOTAL PROPOSED GENERAL OBLIGATION BOND SALE 37,855,000 2. The following projects from the 1986-88 CTP support the proposed Revenue bond sale for $18,875,000: WATER IMPROVEMENTS Land Acquisition for Eagle Mtn Lk Trtmt Plant 2,000,000 Eagle Mtn. Lake Water Treatment Plant 3,500,000 North Fort Worth Development 3,500,000 36" Transmission Main (Eng.) 500,000 24" Transmission Main (Eng.) 100,000 36" Parallel Pipe (Eng.) 100,000 36" Parallel Pipe in Reach St. 200,000 Sun Country Elevated Storage 2,000,000 36" Connection to Sun Country 1 ,800,000 Como Pump Station 400,000 Southside 11 Transmission Main (Eng.) 375,000 op, Engineering and Administration 500,000 Miscellaneous Main Extensions 500,000 Unspecified Developer Participation 1,000,000 •4 Total Water Improvements S 16,475,000 Less Funds Available 3,500,000 TOTAL WATER IMPROVEMENT BOND SALES REQUESTED S 12,975,000 SEWER IMPROVEMENTS Sludge DeWatering Ph 1-B-3 1 ,200,000 Odor Control Ph 1-C-3 3,600,000 Village Creek Electrical Modifications (Eng.) 300,000 Vill Crk Aeration Area II Rehab (Eng. ) 121,000 Sludge DeWatering Ph ]-B-2 - 8,400,000 Engineering and Administration 500,000 Unspecified Major Mains 1 ,000,000 Unspecified Developers Participation 1 ,000,000 Total Sewer Improvements S 16,121 ,000 Less Funds Available 10,221 ,000 TOTAL SEWER IMPROVEMENT BOND SALES REQUESTED S 5,900,000 TOTAL PROPOSED REVENUE BOND SALES S 18,875,000 1 r . ~- ^ ' u� � ATTACHMENT CITY OF FORT WORTH PROJECTED ANNUAL DEBT SERVICE REQUIREMENTS AND DEBT TAX RATE (UOO/S) CURRENT DEBT PROP $37,855 SALE ALT $30/OOD SALE ALT $23,000 SALE FISCAL YR DEBT SV[ TAX RATE DEBT SVC TAX RATE DEBT SV[ TAX RAT[ DEBT SV[ TAX RATE 1907-60 $ 53192 .2827 $ 53192 .2827 $ 53172 .2827 $ 53192 .2827 1988-89 $ 52539 .3136 $ 66939 .3366 $ 56180 .3312 $ 55368 .3254 1989-90 $ 52030 .2869 $ 56026 ,3209 $ 55375 .3164 $ 54640 .3112 1990-91 $ 51657 .2724 $ 55611 .309D $ 54050 .2992 $ 54231 .3904 1991-92 $ 5050 .2652 $ 54664 '29211 $ 54150 '2987 $ 53450 .7841 ) ~ ASSUMPTIONS: 1> Net Taxable Value 1987-88 $15009000 1988~89 $15079000 1989~90 $15500009 1998-91 $16100000 1991-92 $16700000 2} .9590 tax collection rate 3> Annual interest earnings of $10,000 applied to 6u6t service