HomeMy WebLinkAboutIR 25-0114INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 25-0114
To the Mayor and Members of the City Council
October 14, 2025
Page 1 of 1
SUBJECT: 2026 DEBT PLAN — $25.0 MILLION TAX NOTES, SERIES 2025B
Executive Summary
This Informal Report is intended to provide the Mayor and City Council with Financial Management
Services' (FMS) recommendation to advance the planned issuance of approximately $25.0 million of Tax
Notes, Series 2025B, from the summer of 2026 to December 2025 to address expedited capital needs,
including critical Fire and EMS equipment replacement.
Series 2025B Tax Notes Overview
On an annual recurring basis, tax notes are typically sold during the 3rd or 4t" quarter of the fiscal year, on
the open market and through a competitive process. The proceeds of tax notes are generally used to
finance the replacement program for Fire and EMS equipment and apparatus. A portion of the tax notes
will also be used to support the purchases of vehicles under the City's Vehicle Equipment Replacement
Fund (VERF) as well as to fund a critical repair to a failed bridge at the Pecan Valley Golf Course. Due to
the longer delivery lead time, specifically for Fire apparatus, EMS ambulances and vehicle replacement,
staff recommends advancing the FY 2026 Tax Note issuance to better accommodate the elongated
purchase -to -delivery timeframe and support the other expedited capital needs.
The tax notes are planned to fund the following projects, as well as the cost of issuance of the tax notes:
Tax Note Funded Proiects
Fire Apparatus $14,361,000
Ambulance Purchase 5,804,000
Vehicle Equipment Replacement Fund 3,000,000
Pecan Valley Bridge Replacement 1,600,000
Estimated Cost of Issuance 235,000
$25,000,000
The Tax Notes will be structured to align with the FY 2026 budget. In addition, staff is evaluating potential
refunding opportunities that may be incorporated into this transaction if market conditions provide sufficient
debt service savings. It is the City's practice to achieve positive debt service savings through refinancing
when the opportunity presents itself. The details of the refunding are still being reviewed in coordination
with the City's financial advisors, and a final recommendation will be brought forward with the authorizing
documents if it is determined to be cost-effective. This financing supports the City's commitment to
maintaining essential services and infrastructure while managing costs effectively.
Staff is currently coordinating with the City's financial advisors and bond counsel to prepare the necessary
authorizing documents to present to Council for approval at the October 28t" meeting. It is anticipated that
the transaction will receive bid submissions on November 19t" with closing and delivery of funds scheduled
for December 10tn
For questions, please contact Reginald Zeno, Chief Financial Officer, at 817-392-8500 or Alex Laufer,
Assistant Finance Director, at 817-392-2268.
Jesus "Jay" Chapa
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS