HomeMy WebLinkAboutOrdinance 27751-06-2025ORDINANCE NO.27751-06-2025
DIRECTING PUBLICATION AND POSTING OF NOTICE OF INTENTION
TO ISSUE COMBINATION TAX AND REVENUE CERTIFICATES
OF OBLIGATION; AND ORDAINING OTHER MATTERS RELATING TO
THE SUBJECT
WHEREAS, the City of Fort Worth, Texas (the "City"), expects to pay expenditures in
connection with the design, planning, acquisition and construction of the projects described in
Exhibit A to this Ordinance prior to the issuance of the hereinafter described Certificates of
Obligation; and
WHEREAS, it is hereby officially found and determined that the meeting at which this
Ordinance was considered was open to the public, and public notice of the time, place and purpose
of said meeting was given, all as required by Chapter 551, Texas Government Code.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
Section 1. That attached hereto and marked "Exhibit A" is the form of notice (the
"Notice"), the form and substance of which are hereby passed and approved.
Section 2. That the City Manager shall cause said Notice to be (a) published, in
substantially the form attached hereto, in a newspaper of general circulation in the City, once a
week for two consecutive weeks, the date of the first publication to be before the forty-fifth (45')
day before the day tentatively proposed for authorizing the issuance of the Certificates of
Obligation as shown in said Notice and (b) posted, in substantially the form attached hereto,
continuously on the City's internet website for at least forty-five (45) days before the day
tentatively proposed for authorizing the issuance of the Certificates of Obligation as shown in said
Notice.
Section 3. That the improvements to be financed with proceeds from the proposed
Certificates of Obligation are to be used for the purposes described in the attached Notice.
Section 4. That attached hereto as "Schedule I" is a list of outstanding debt obligations of
the City which the City hereby designates as self-supporting debt for purposes of Subchapter C of
Chapter 271, Texas Local Government Code, as amended.
Section 5. That this Ordinance shall be effective immediately from and after its passage in
accordance with the provisions of Section 1201.028, Texas Government Code, and it is
accordingly so ordained.
ADOPTED AND EFFECTIVE June 24, 2025.
ATTEST:
Clty Secretary
City pf Fort Worth, Texas
APPROVED AS TO FORM:
41�avjj 4�0c_
ity Attorney
City of Fort Worth, Texas
4f U A�IUAII'
Mayor `
City of Fort Worth, Texas
(City Seal)
Signature Page — Ordinance Authorizing Publication and Posting of Notice of Intent to Issue Certificates of Obligation
Exhibit A
NOTICE OF INTENTION TO ISSUE
COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION
NOTICE IS HEREBY GIVEN that it is the intention of the City Council (the "Council")
of the City of Fort Worth, Texas (the "City"), to issue one or more series of interest bearing
certificates of obligation of the City to be entitled "City of Fort Worth, Texas Combination Tax
and Revenue Certificates of Obligation," for the purpose of paying all or a portion of the City's
contractual obligations incurred in connection with (i) designing, constructing, acquiring,
installing and equipping additions, extensions and improvements to the City's combined
waterworks and sanitary sewer system (the "System"), including water service lines, and (ii) the
payment of fiscal, engineering and legal fees incurred in connection therewith. The Council
tentatively proposes to authorize the issuance of said series (one or more) of Certificates of
Obligation at its regular meeting place in the City Hall at a meeting to commence at 10:00 o'clock,
a.m., on the 30t' day of September, 2025. In the event the Council will be unable to meet at City
Hall on September 30, 2025, the City will post information on its website for attending the meeting
by telephone, teleconference or other electronic means. The maximum principal amount of
Certificates of Obligation that may be authorized to be sold on said date for such purposes
described above is $7,000,000. The Council presently proposes to provide for the payment of said
series (one or more) of Certificates of Obligation from the levy of ad valorem taxes and from a
pledge of surplus revenues derived from the operation of the System that remain after payment of
all operation and maintenance expenses thereof, and after all debt service, reserve and other
requirements in connection with all revenue bonds or other obligations (now or hereafter
outstanding) of the City have been met, to the extent that such obligations are payable from all or
any part of the net revenues of the System.
In accordance with the provisions of Subchapter C of Chapter 271, Texas Local
Government Code, as amended ("Chapter 271"), the following information has been provided by
the City (excludes $68,550,000 principal amount of outstanding debt obligations the City has
designated as self-supporting and which the City reasonably expects to pay from revenue sources
other than ad valorem taxes; provided, however, that in the event such self-supporting revenue
sources are insufficient to pay such debt service, the City is obligated to levy ad valorem taxes to
pay such debt obligations): (i) the principal amount of all outstanding debt obligations of the City
is $860,690,000; (ii) the current combined principal and interest required to pay all outstanding
debt obligations of the City on time and in full is $1,112,996,240; (iii) the maximum principal
amount of the Certificates of Obligation to be authorized is $7,000,000; (iv) the estimated
combined principal and interest required to pay the Certificates of Obligation to be authorized on
time and in full is $18,197,997; (v) the maximum interest rate for the Certificates of Obligation
may not exceed the maximum legal interest rate; and (vi) the maximum maturity date of the
Certificates of Obligation to be authorized is February 15, 2056. The ordinance designating certain
outstanding debt obligations of the City as self-supporting for purposes of Chapter 271 is available
upon request to the City at the address noted above.
CITY OF FORT WORTH, TEXAS
/s/ Mattie Parker
Mayor
Schedule I
CITY OF FORT WORTH, TEXAS
Self -Supporting Debt
The City designates all or a portion of the following outstanding debt obligations of the City as
self-supporting debt for purposes of Subchapter C of Chapter 271, Texas Local Government Code,
as amended:
General Purpose Refunding and Improvement Bonds, Series 2015A;
General Purpose Refunding and Improvement Bonds, Series 2016;
General Purpose Refunding and Improvement Bonds, Series 2020;
General Purpose Refunding Bonds, Taxable Series 2021;
Combination Tax and Revenue Certificates of Obligation, Series 2021; and
Combination Tax and Revenue Certificates of Obligation, Series 2023.
THE STATE OF TEXAS
COUNTIES OF TARRANT, DENTON, PARKER, WISE AND JOHNSON
CITY OF FORT WORTH
I, Jannette Goodall, City Secretary of the City of Fort Worth, in the State of Texas (the
"City"), do hereby certify that I have compared the attached and foregoing excerpt from the
minutes of the regular, open, public meeting of the City Council of the City held on June _, 2025,
and of the ordinance authorizing the publication and posting of notice of intention to issue
Certificates of Obligation, which was duly passed at said meeting, and that said copy is a true and
correct copy of said excerpt and the whole of said ordinance. Said meeting was open to the public,
and public notice of the time, place and purpose of said meeting was given, all as required by
Chapter 551, Texas Government Code, as amended.
In testimony whereof, I have set my hand and have hereunto affixed the seal of the City of
Fort Worth, this day of June, 2025.
City Secretary of the
City of Fort Worth, Texas
(City Seal)
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06/24/25 M&C FILE NUMBER: M&C 25-0572
LOG NAME: 13NOTICE OF INTENTION - SERIES 2025 CO DWSRF LSLR
SUBJECT
(ALL) Adopt Ordinance Directing Publication and Posting of Notice of Intention to Issue Combination Tax and Revenue Certificates of Obligation in
an Amount Not to Exceed $7,000,000.00 for Improvements to the City's Combined Water and Sewer System and Expressing Intent to Reimburse
Initial Project Expenditures from Proceeds if Debt is Issued
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance, which directs publication and posting of notice of the City's intention to issue
Combination Tax and Revenue Certificates of Obligation, in an amount not to exceed $7,000,000.00 for the purpose of paying all or a portion of
the City's contractual obligations incurred in connection with (i) designing, constructing, acquiring, installing and equipping additions, extensions
and improvements to the City's combined waterworks and sanitary sewer system (the "System"), including water service lines, and (ii) the payment
of fiscal, engineering and legal fees incurred in connection therewith; approves the form of notice; directs notice to be published and posted in
accordance with state law; and expresses official intent for the City to reimburse itself from proceeds of the debt sale, if debt is issued, for project -
related expenditures incurred prior to issuance.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take preliminary actions in preparation for the authorization and issuance of
Certificates of Obligation (C.O.$) for the purpose of paying all or a portion of the City's contractual obligations incurred in connection with (i)
designing, constructing, acquiring, installing and equipping additions, extensions and improvements to the City's combined waterworks and
sanitary sewer system (the "System"), including water service lines, and (ii) the payment of fiscal, engineering and legal fees incurred in connection
therewith.
Under state law the City Council has the authority to issue C.O.s without explicit prior voter approval, provided that notice must be published and
posted and the public provided an opportunity to petition for an election to be held. In addition, the City has established financial policies
governing the issuance of C.O.s that limit their use to finance public improvements in special circumstances and only after determining the City's
ability to assume additional debt. An example of special circumstances is a situation, such as the one posed here, where it would be more
economical to issue C.O.s rather than revenue bonds.
The projects qualify for C.O. financing under both state law and City policy.
The City anticipates the debt service of the C.O.s associated with the City's combined water and sewer system project will be self-supporting and
entirely repaid from water and sewer revenues. Staff is recommending issuance of combination tax and revenue C.O.s with the City's taxing
authority and a pledge of surplus revenues derived from the operation of the combined water and sewer system. These surplus revenues will be
available only after all operation and maintenance expenses, as well as debt service, reserve, and other requirements related to any outstanding
revenue bonds or obligations payable from the System's net revenues, have been satisfied.
Upon City Council approval, the City Manager shall publish the initial Notice of Intention on June 29, 2025 and will post the notice on the City's
website at the same time. The second Notice of Intention will be published on the same day of the week following the first notice.
An ordinance to authorize issuance and delegate authority for the sale of the C.O.s is scheduled to be brought back for Council consideration in
September, 2025. The C.O.s are intended to be sold on a competitive basis with closing and delivery of the C.O. funds anticipated to occur in the
late summer/early fall timeframe.
In addition to setting the form of notice and directing its publication and posting, adoption of the attached ordinance would also serve as the City
Council's adoption of a formal statement of intent to reimburse preliminary costs for the project out of the issuance from the certificates. This
aspect of the ordinance does not obligate the City to sell C.O.s, but preserves the ability for the City to reimburse itself for amounts already spent
on the project from tax-exempt debt proceeds if it does. This mechanism allows projects to continue forward utilizing other funds until debt
proceeds are available. Any expenses incurred against an initial funding source would be repaid out of debt proceeds following issuance, sale,
and receipt of proceeds.
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 approval of this recommendation will have no material effect on City funds.
Submitted for City Manaaer's Office bv: Reginald Zeno 8517
Oriainatina Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Anthony Rousseau 8338
Expedited