HomeMy WebLinkAboutResolution 6148-08-2025A Resolution
NO.6148-08-2025
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR EAGLE MOUNTAIN
WATER TREATMENT PLANT 35MGD EXPANSION AND PUMP STATION 2
WHEREAS, the City of Fort Worth, Texas (the "City") is a home -rule
municipality and political subdivision of the State of Texas; and
WHEREAS, the City expects to pay expenditures in connection with the design,
planning, acquisition and construction for the Eagle Mountain Water Treatment
Plant 35MGD Expansion and Pump Station 2 Project (the "Project") prior to the
issuance of obligations by the City in connection with the financing of the
Project from available funds; and
WHEREAS, the City finds, considers, and declares that the
reimbursement of the City for the payment of such expenditures will be
appropriate and consistent with the lawful objectives of the City and, as such, chooses
to declare its intention, in accordance with the provisions of Section 1.150-2 of the
Treasury Regulations, to reimburse itself for such payments at such time as it issues
obligations to finance the Project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT:
Section 1. The City reasonably expects debt, as one or more series of
obligations, may be issued or incurred by the City with an aggregate maximum
principal amount not to exceed $1,025,000.00 for the purpose of paying the
aggregate costs of the Project.
Section 2. All costs to be reimbursed pursuant hereto will be capital
expenditures. No obligations will be issued by the City in furtherance of this
Statement after a date which is later than 18 months after the later of (1) the date the
expenditures are paid or (2) the date on which the property, with respect to which
such expenditures were made, is placed in service.
Section 3. The foregoing notwithstanding, no obligation will be issued
pursuant to this Statement more than three years after the date any expenditure which
is to be reimbursed is paid.
Adopted this 26th day of August 2025
ATTEST:
By:
Jannette S. Goodall, City Secretary
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MAYOR AND COUNCIL COMMUNICATION
MAP 60EMWTP ONCOR ELEC S TRANS
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/26/25 M&C FILE NUMBER: M&C 25-0799
LOG NAME: 60EMWTP ONCOR ELEC S TRANS
SUBJECT
(CD 7) Authorize Execution of a Tariff for Retail Delivery Service Agreement with Oncor Electric Delivery Company LLC in the Amount of
$854,596.45 for Installation of Electric Service and Transformers to New Electrical Building at the Eagle Mountain Water Treatment Plant, Adopt
Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt, and Adopt Appropriation Ordinance to Effect a
Portion of Water's Contribution to the Fiscal Years 2025-2029 Capital Improvement Program
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of a Tariff for Retail Delivery Service Agreement with Oncor Electric Delivery Company LLC in the amount of
$854,596.45 for installation of electric service and transformers to new electrical building at the Eagle Mountain Water Treatment Plant;
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Eagle Mountain
Water Treatment Plant 35 Million Gallons Per Day Expansion project; and
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing
appropriations in Eagle Mountain Water Treatment Plant 35 Million Gallons Per Day Expansion project (City Project No. 105176) in the
amount of $854,597.00 and decreasing appropriations in the Water & Sewer Commercial Paper project (City Project No. UCMLPR) by the
same amount, to effect a portion of Water's contribution to the Fiscal Years 2025-2029 Capital Improvement Program.
DISCUSSION:
As part of this agreement, ONCOR Electric Delivery Company LLC (ONCOR), will extend feeders and install transformers and metering
equipment to supply power to the new facilities included in the EMVVrP expansion project. Construction of the expansion project was previously
authorized by City Council on June 6, 2025 (M&C 25-0516). ONCOR has calculated costs in the amount of $854,596.45 for the installation of the
electrical infrastructure needed to provide power for the plant expansion.
Available cash within the Water and Sewer portfolio and the City's portfolio along with the appropriation authority authorized under the Callable
Commercial Paper Program (CP) will be used to provide interim financing for this project until debt is issued. Once debt associated with this
project is sold, bond proceeds will be used to reimburse the Water and Sewer portfolio and the City's portfolio in accordance with the attached
Reimbursement Resolution. Under federal law, debt must be issued within approximately three years in order for these expenses to be
reimbursable. Adoption of the attached resolution does not obligate the City to sell bonds, but preserves the ability of the City to reimburse itself
from tax-exempt bond proceeds.
It is the practice of the Water Department to appropriate its Capital Improvement Program (CIP) plan throughout the Fiscal Year, instead of within
the annual budget ordinance, as projects commence, additional funding needs are identified, and to comply with bond covenants. The actions in
the M&C will appropriate funds in support of the Water's portion of the City of Fort Worth's Fiscal Years 2025-2029 Capital Improvement Program.
Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the Eagle Mountain
Water Treatment Plant 35MGD Expansion.
Funding for the Eagle Mountain Water Treatment Plant 35MGD Expansion and project is depicted below
F — - I I
Fund
Existing Additional
I project Total"
Appropriations Appropriations
W&S Rev Bonds
Series 2024 —
$15,503,908.00 $0.00
$15,503,908.00
Fund 56022
W&S Rev Bonds
I
Series 2024C —
$122,000,000.00. $0.00
$122,000,000.00
Fund 56025
iW&S
Commercial $175,254,691.00 $854,597.00 $176,109,288.00
Paper Fund
56026
Project Total II$312,758,599.00 $854,597.00 $313,613,196.00
This project is located in Council District 7.
A Form 1295 is not required because: This contract will be with an electric utility: ONCOR Electric Delivery Company, LLC
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are available in the Commercial Paper project within the W&S Commercial Paper Fund and upon
approval of the above recommendations and adoption of the appropriation ordinance, funds will be available in the W&S Commercial Paper Fund
for the EMWTP 35MGD EXP. AND PS2 project to support the above recommendations and execution of the construction contract. Prior to any
expenditure being incurred, the Water Department has the responsibility to validate the availability of funds.
Submitted for Citv Manaaer's Office bv: Jesica McEachern 5804
Oriainatina Business Unit Head: Chris Harder 5020
Additional Information Contact: David Townsend 8430