HomeMy WebLinkAboutOrdinance 27229-10-2024Ordinance No. 27229-10-2024
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE WATER AND SEWER FUND, FROM AVAILABLE
NET POSITION, IN THE AMOUNT OF $300,000.00 TO PAY THE REMAINDER
OF THE COSTS OF ISSUANCE, WITH ALL SUCH AMOUNTS 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 2024-2025 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Water
and Sewer Fund, from available net position, in the amount of $300,000.00 to pay the remainder of the costs
of issuance, with all such amounts 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 shaII 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 27107-09-2024 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said prior ordinances and appropriations are hereby expressly repealed.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.
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Assistant City Attorney
CITY SECRETARY
Jannette S. Goodall
City Secretary
City of Port Worth, Texas
Mayor and Council Communication
DATE: 10/15/24 MSC FILE NUMBER: M&C 24-0872
LOG NAME: 13TWDB SERIES 2024C WATER AND SEWER REVENUE BONDS
SUBJECT
(ALL) Adopt Forty -Fourth Supplemental Ordinance Authorizing Issuance of City of Fort Worth Texas Water and Sewer System Revenue Bonds,
Series 2024C, in the Aggregate Principal Amount of $126,000,000.00, Approving Sale of the Bonds to the Texas Water Development Board, and
Adopt Appropriation Ordinances
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached forty-fourth supplemental water and sewer system revenue bond ordinance authorizing the issuance of City of Fort Worth,
Texas Water and Sewer System Revenue Bonds, Series 2024C, in the aggregate principal amount of $125,000,000.00, and approving sale
of the bonds to the Texas Water Development Board;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Bond 2024C Fund in
the amount up to $122,000,000.00, for the purpose of funding the Eagle Mountain Water Treatment Plant — 35 MGD Expansion project (City
Project No. 105176), with all such amounts subject to reduction to conform to final figures reflected in bond closing documents;
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Fund, from available
net position, in the amount of $300,000.00 to pay the remainder of the costs of issuance, with all such amounts subject to reduction to
conform to final figures reflected in bond closing documents; and
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water & Sewer Debt Service Reserve
Fund up to the amount of $3,600,000.00, from available bond sale proceeds, to fund the required reserve and delegating to the City
Manager authority to transfer such funds to the Water & Sewer Debt Service Fund if needed to make principal and/or interest payments on
the Water and Sewer System Revenue Bonds, Series 2024C, 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 revenue bonds to the Texas Water
Development Board (TWDB) to provide funding for the Eagle Mountain Water Treatment Plant — 35 MGD Expansion project (City Project No.
105176); to appropriate proceeds to fund the project, pay a portion of the costs of issuance, provide a required reserve, and to take actions to
appropriate operating funds for the balance of the costs of issuance.
Expansion is needed in order to increase treatment capacity to supply water to the fast-growing northern portion of the service area. Increasing
treatment capacity at Eagle Mountain Water Treatment Plant provides Fort Worth with the ability to provide service to a growing regional
population, while providing more redundancy and flexibility to adjust pressure plane boundaries and install district metering to existing service
areas, which are water loss strategies being incorporated in Fort Worth. The desired date in which this expansion will be in service is summer
2028 in order to meet the quickly increasing regional demands of a growing service area for both retail and wholesale customers.
The planned project comes under the auspices of TWDB's State Water Implementation Fund for Texas (SWIFT) program, which provides low-cost
financial assistance for eligible projects. The subsidized interest rates offered by the program are less than traditional debt -financing costs. The
estimated borrowing cost for this debt issuance is 3.59 percent.
In 1991, the City adopted a Master Ordinance establishing a Water & Sewer System Revenue Financing Program for the Water Department. Each
time the City issues debt for the Water & Sewer System, a supplemental ordinance must be adopted which contains details specific to the debt
being issued. This issuance would be the forty-fourth supplemental ordinance since the Master Ordinance was adopted. The Department
tentatively plans a November 21, 2024 closing date for the funds.
Recommendation 2 appropriates sale proceeds to the project, with such amount subject to reduction to conform to actual revenues.
Recommendation 3 appropriates available net position in the Water system operating fund to pay the costs of issuance, with such amount subject
to reduction to conform to actual expenses.
In this instance, TWDB is requiring that a reserve fund be provided and funded (out of bond proceeds) to ensure that, in the unlikely event current
system revenues are not available to support a scheduled debt service payment, monies from the reserve can be used to make such a payment. (if
the City had to use the reserve fund to make a debt service payment, the City would be required under the terms of the bond ordinance to replenish
the reserve from other Water system funds.)
Recommendation 4 approves an appropriation ordinance for the required reserve amount and provides delegated authority to the City Manager
(or his designee) to move the funds to the appropriate debt service fund in the unlikely event that they are needed to support a debt service
appropriation and pay the interest andlor principal on these bonds. This authority will also allow the City Manager or designee to move the reserve
fund amounts to the debt service fund at the end of the repayment period, when it will be utilized toward the final payments on the debt.
Note on Appropriations - The attached appropriation ordinances reflect the maximum appropriation amount for bond proceeds and corresponding
required City funds. Their structure accommodates variables associated with sale of debt such as the uncertainty as to final calculations for
issuance costs and required reserve amount. To the extent numbers at closing are less than those reflected in the ordinances, the available
appropriation amounts will be reduced as needed to reflect final figures based on the closing documents to ensure appropriations do not exceed
actuals.
This debt issuance is part of the Water & Sewer five-year Capital Improvement Program.
A Form 1295 is not required because: This contract will be with a governmental entity, state agency or public institution of higher education: Texas
Water Development Board
FISCAL. INFORMATION I CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the appropriation ordinances this will provide
the necessary budget approval to record the sale of the debt and the associated expenses, contribution to the reserve fund and appropriations to
capital projects. Prior to any expenditure being incurred, the Water Department has the responsibility to validate the availability of funds.
5ubmitted_for City Manager's Office b1L Reginald Zeno 8517
Originating Business Unit Head: Reginald Zeno 8517
Additional_ Information Contact: Anthony Rousseau 8338