HomeMy WebLinkAboutOrdinance 26967-06-2024Ordinance No. 26967-06-2024
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE WALSH RANCH PID SERIES 2024 FUND, IN THE
AMOUNT UP TO $19,000,000.00, SUBJECT TO THE SALE OF SPECIAL
ASSESSMENT REVENUE BONDS AND RECEIPT OF PROCEEDS, FOR THE
PURPOSE OF FUNDING DEVELOPER REIMBURSEMENTS FOR
IMPROVEMENT AREA #1, IMPROVEMENT AREA #2, AND IMPROVEMENT
AREA #3 AUTHORIZED IMPROVEMENTS AND PAYING COSTS OF ISSUANCE
OF THE BONDS, WITH SUCH AMOUNT SUBJECT TO REDUCTION TO
CONFORM TO FINAL FIGURES REFLECTED IN BOND CLOSING
DOCUMENTS; 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 increased estimated receipts and appropriations in the Walsh
Ranch PID Series 2024 Fund, in the amount up to $19,000,000.00, subject to the sale special assessment
revenue bonds and receipt of proceed, for the purpose of funding developer reimbursements for Improvement
Area #I, Improvement Area #2, and Improvement Area #3 authorized improvements and paying costs of
issuance of the Bonds, with such amount subject to reduction to conform to final figures reflected in bond
closing documents.
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said prior ordinances and appropriations are hereby expressly repealed.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:
Assistant City Attorney
ADOPTED AND EFFECTIVE: June 11, 2024
CITY SECRETARY
Jannette S. Goodall
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06/11/24 M&C FILE, NUMBER: M&C 24-0473
LOG NAME: 13WALSH RANCH PID SPECIAL ASSESSMENT REVENUE BONDS SERIES 2024
SUBJECT
(ALL) Adopt Ordinance Authorizing Issuance and Sale of the City of Fort Worth, Texas Special Assessment Revenue Bonds, Series 2024 (Fort
Worth Public Improvement District No. 16 (Walsh Ranch/Quail Valley) Improvement Areas #1.3 Project) for the Purpose of Paying a Portion of the
Costs of Authorized Improvements within the PID, and Paying the Costs of issuance of the Bonds; Authorizing Execution of All Related Documents;
Ordaining Related Matters and Adopt Appropriation Ordinances
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance (a) authorizing the issuance and approving the sale of Bonds in the principal amount set forth in the attached
ordinance for the purpose of (i) financing a portion of the actual costs of public improvements within the PID; (ii) paying the costs of issuance
of the Bonds; (b) approving and authorizing the execution of the Indenture of Trust setting forth the terms of the Bonds and securing the
pledge of assessments to the payment thereof, (c) approving and authorizing the execution of the Bond Purchase Agreement, pursuant to
which FMS Bonds, Inc. agrees to purchase the Bonds from the City; (d) authorizing and approving the use of the Preliminary Limited Offering
Memorandum and Final Limited Offering Memorandum in connection with the pricing and sale of the Bonds; (e) authorizing and approving
the execution of the Continuing Disclosure Agreement pursuant to which the City undertakes to make certain disclosures with respect to the
Bonds as required by the Securities and Exchange Commission Rule 15c2-12; (0 approving an update to Fort Worth Public Improvement
District No. 16 (Walsh Ranch/Quail Valley) Service and Assessment Plan; and (g) approving the purchase of a municipal bond insurance
policy and reserve fund surety policy with respect to the Bonds;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Walsh Ranch PID Series 2024 Fund in
the amount up to $19,000,000.00, subject to the sale of special assessment revenue bonds and receipt of proceeds, for the purpose of
funding developer reimbursements for Improvement Area #1, Improvement Area #2, and Improvement Area #3 authorized
improvements and paying costs of issuance of the Bonds, with such amount subject to reduction to conform to final figures reflected in bond
closing documents; and
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Walsh Ranch PID Debt Service Fund, in
the amount up to $500,000.00, subject to the sale of special assessment revenue bonds and receipt of proceeds, to fund the required
reserve, with such amount subject to reduction to conform to final figures reflected in bond closing documents.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to approve the issuance and sale of the Bonds that will allow the City of Fort
Worth (City) to reimburse authorized improvements associated with Improvement Areas 1- 3 of Fort Worth Public Improvement District No. 16
(Walsh Ranch/Quail Valley).
Staff is recommending that these bonds be sold to FMS Bonds, Inc. pursuant to a bond purchase agreement resulting from a negotiated sale
process conducted as a public underwriting. The Bonds will have the terms set forth in the Indenture of Trust attached to the ordinance and will be
21-year bonds to match the timing of the annual installments of the PID assessments for these improvement areas. The Bonds will not carry an
underlying rating but will receive a rating based on the bond insurance policy.
Proceeds from the sale of the Bonds will be used to reimburse the developer for a portion of the actual costs of authorized improvements in these
improvement areas within the PID and pay for the costs of issuance of the Bonds, including funding a reserve and acquiring bond insurance. The
exact amount of the costs of issuance and reserve will fluctuate slightly based on the final terms of sale. The attached appropriation ordinances
reflects the maximum appropriation amount for bond proceeds. Its structure accommodates variables associated with sale of debt. To the extent
numbers at closing are less than those reflected in the ordinance, the available appropriation amount will be reduced as needed to reflect final
figures based on the closing documents to ensure appropriations do not exceed actuals.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION ! CERTIF{CATION:
The Director of Finance certifies that upon adoption of the actions provided within this Mayor and Council Communication, the sale of the City of
Fort Worth, Texas, Special Assessment Revenue Bonds, Series 2024 (Fort Worth Public Improvement District No. 16 (Walsh Ranch/Quail Valley)
Improvement Areas #1,3 Project), will proceed as necessary to provide funding of the improvements in the Walsh Ranch PID Series 2024 Fund as
outlined in the Fort Worth Public Improvement District No. 16 (Walsh Ranch/Quail Valley) Service and Assessment Plan. Prior to any expenditures
being incurred, the Financial Management Services Department has the responsibility to validate the availability of funds.
Submitted for CIV Manac ees Office h Reginald Zeno 8517
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Anthony Rousseau 8338
Expedited