HomeMy WebLinkAboutOrdinance 27701-06-2025Ordinance No. 27701-06-2025
AN ORDINANCE ADJUSTING APPROPRIATIONS IN THE STORMWATER
DEBT SERVICE FUND BY DECREASING TRANSFER FROM STORMWATER
UTILITY FUND BY $7,030,581.17 AND CONTRIBUTION TO NET POSITION BY
$159,442.00, AND INCREASING USE OF NET POSITION BY $6,871,139.17, FROM
AVAILABLE INTEREST PROCEEDS; 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 the budget of the City of Fort Worth for Fiscal Year 2024-2025, as enacted by Ordinance 27107-09-
2024, as amended, is hereby further amended to make the following adjustments in the Stormwater Debt
Service Fund: decreasing Transfer from Stormwater Utility by $7,030,581.17, decreasing contribution to net
position by $159,442.00, and increasing use of net position by $6,871,139.17, from prior year interest
earnings.
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 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said prior ordinances and appropriations are hereby expressly repealed.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.
APPROVED AS TO FORM AND LEGALITY:
Assistant City Attorney
ADOPTED AND EFFECTIVE: June 10, 2025
CITY SECRETARY
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Jannette S. Goodall
City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06/10/25 M&C FILE NUMBER: M&C 25-0553
LOG NAME: 20SW DEBT SERVICE PAYMENT ADJ AND COI
SUBJECT
(ALL) Adopt Appropriation Ordinances to Increase Funding for Various Stormwater Programmable Capital Projects by Utilizing Surplus Interest
Proceeds in the Debt Service Fund to Pay Current Year Debt Service, Reallocating an Operating Transfer to Capital Instead of Debt Service, and
Reallocating Funds from a Cost of Issuance Project to a Programmable Capital Project, Authorize All Associated Transfers, and Amend the Fiscal
Year 2025 Adopted Budget and the Fiscal Years 2025-2029 Capital Improvement Program
RECOMMENDATION:
It is recommended that the City Council take the following actions to increase appropriated funding for Stormwater capital projects:
1. Adopt the attached ordinance reallocating estimated receipts and appropriations in the Stormwater Utility Fund, by decreasing Transfer to
Stormwater Debt Service Fund by $7,030,581.17, and increasing Transfer to Stormwater Capital Projects Fund by the same amount, for the
purpose of funding stormwater capital projects as needed;
2. Adopt the attached ordinance making the following adjustments in the Stormwater Debt Service Fund: decreasing Transfer from Stormwater
Utility by $7,030,581.17, decreasing contribution to net position by $159,442.00, and increasing use of net position by $6,871,139.17, from
a suplus attributable to prior year interest earnings;
3. Adopt the attached ordinance increasing estimated receipts and appropriations in the Stormwater Capital Projects Fund in the cumulative
amount of $7,030,581.17, transferred from the Stormwater Utility Fund, for the purpose of funding certain identified programmable projects
(City Project Nos. P00136, P00114, P00120);
4. Adopt the attached ordinance adjusting estimated receipts and appropriations in the Drainage Revenue Bonds Series 2023 Fund by
decreasing the Cost of Issuance project (City Project No. 101004) by $3,014,493.78 and increasing the Total Channel Restoration Bond
Programmable project (City Project No. P00136) by the same amount; and
5. Amend the Fiscal Year 2025 Adopted Budget and the Fiscal Years 2025-2029 Capital Improvement Program.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take actions to make more resources available for stormwater capital
projects. That is accomplished by recognizing surplus funds from interest earnings in the Stormwater Debt Service Fund to pay current -year debt
service, reallocating a planned transfer for debt service to capital instead, and reallocating proceeds within the Drainage Rev Bonds Series 2023
Fund from a Cost of Issuance project to a programmable projects.
The City's Stormwater Fund generates interest income by prudently investing idle cash from operations, "pay as you go" capital funds, and bond
funds in strict compliance with federal and state laws and regulations, as well as City policy. The recent practice has been to allocate interest
income from Stormwater enterprise activities to the City's Stormwater Debt Service Fund to offset interest cost associated with outstanding debt
issuances and to accumulate cash which can be used to pay off debt prior to maturity to achieve debt service savings. The City has benefited
tremendously from the current elevated interest rate environment, resulting in better-than-expected interest earnings due to a dramatic increase in
the Federal Funds rate from a range of 0.01 % to 0.25% to over 5% in the current year.
As a result, City staff has identified approximately $7,030,581.17 of excess funds above the minimum reserve requirement in the City's
Stormwater Debt Service Fund. Staff recommends for City Council to declare this surplus of interest income receipts in the Stormwater Utility Fund
for use in paying debt service obligations. Using the interest proceeds in this way will allow repurposing a planned transfer from the Stormwater
Utility Fund to go to the Stormwater Capital Projects Fund instead to fund various Programmable Projects. The funding will be used to advance
hazardous road overtopping mitigation projects, storm drain rehab projects, and channel restoration improvements.
Staff routinely monitor collection of investment income from utility operations to identify any surplus that can be used for other lawful
purposes. Given the variable nature of investment income, any surplus may fund one-time initiatives, capital projects, or accumulate cash, which
can be used to pay off debt prior to maturity to achieve debt service savings.
When the Drainage Revenue Bonds, Series 2023 were issued, on the day of pricing, interest rates were lower than the City's initial estimates. This
allowed the bond sale to generate more bond proceeds without increasing the annual debt service requirements. Additional proceeds of
$3,014,493.78 were ultimately recorded to the Cost of Issuance project within the Drainage Rev Bonds Series 2023 Fund, with the intent to
reallocate the funding to specific stormwater projects at a later date. This M&C will move these proceeds to the Total Channel Restoration
Programmable project.
Funding for this project was not included in the Fiscal Years 2025-2029 Capital Improvement Program due to funding availability. The action in the
M&C will amend the Fiscal Years 2025-2029 Capital Improvement Program as approved in connection with Ordinance 27107-09-2024.
Funding is budgeted in the Stormwater Debt Service Fund for the Transportation & Public Works Department within the Stormwater Capital
Projects and Drainage Rev Bonds Series 2023 Funds for the purpose of funding various Stormwater Programmable Projects.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are currently available in the Stormwater Debt Service Fund and Drainage Rev Bonds Series 2023
Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds will be available in the
Stormwater Capital Projects and Drainage Rev Bonds Series 2023 Funds for the Total Channel Restoration Bond, Stormdrain Pipe Rehab
and SW Hazardous Rd Overtopping programmable projects. Prior to an expenditure being incurred, the Transportation & Public Works
Department has the responsibility of verifying the availability of funds.
Submitted for Citv Manaaer's Office bv: Jesica McEachern 5804
Oriainatina Business Unit Head: Lauren Prieur 6035
Additional Information Contact: Monty Hall 8662