HomeMy WebLinkAboutIR 9579 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9579
To the Mayor and Members of the City Council August 6, 2013
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SUBJECT: MATERIAL EVENT DISCLOSURE AND PAYING AGENT SERVICES
The purpose of this Informal Report is to make the Mayor and City Council aware of staff's recent
actions to consolidate the paying agent function for the City's outstanding debt instruments to a
single provider.
A paying agent performs a number of services for the issuer of debt, with the primary focus being
to invoice the issuer prior to a required payment date, to receive the funds from the issuer, and to
distribute those funds to the bondholders through the Depository Trust Company (DTC) on the
due date.
Since late 2011, the City has been working through two separate paying agents. Wells Fargo
Bank, N.A. (Wells) was the City's provider of such services for debt issued between 2003 and
2011. In 2011, a new contract was awarded to Bank of Texas. That contract calls for Bank of
Texas to provide paying agent services on obligations issued on or after the effective date of the
contract while all previously issued obligations would continue to be serviced by Wells.
In light of the excellent performance of Bank of Texas as paying agent and potential efficiencies
to be gained, staff has provided notice to Wells Fargo of the City's intent to assign their services
as paying agent and consolidate all paying agent duties for outstanding City debt obligations to
Bank of Texas. Since a 60-day notice period is required under the contract, the new arrangement
will be effective October 1, 2013.
If you have any questions, please contact Jay Chapa, Interim Director Financial Management
Services, 817-392-8517.
Tom Higgins
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS