HomeMy WebLinkAbout28097-10-2025 - City Council - OrdinanceOrdinance No. 28097-10-2025
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
GENERAL DEBT SERVICE FUND IN THE AMOUNT OF (1) $104,385,000.00, SUBJECT
TO THE SALE OF BONDS AND RECEIPT OF PROCEEDS, FOR THE PURPOSE OF FUNDING
THE REQUIRED ESCROW TO REFUND EXISTING DEBT (11) IN THE AMOUNT
OF $800,000.00 FOR THE PURPOSE OF PAYING COST OF ISSUANCE (III) IN THE AMOUNT OF
$965,000.00 FOR THE PURPOSE OF INTEREST EXPENSE, FOR A TOTAL AMOUNT OF
$106,150,000.00 WITH SUCH AMOUNTS SUBJECT TO REDUCTION TO CONFORM TO FINAL
FIGURES REFLECTED IN BOND CLOSING DOCUMENTS AND WITH ANY EXCESS COST OF
ISSUANCE FUNDS REMAINING AFTER CLOSING BEING TRANSFERRED TO THE GENERAL
DEBT SERVICE FUND; 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 2025-2026 in
the Budget of the City Manager, there shall also be increased estimated receipts and appropriations
in the General Debt Service Fund in the amount of (i) $104,385,000.00, subject to the sale of bonds and
receipt of proceeds, for the purpose of funding the required escrow to refund existing debt (ii) in
the amount of $800,000.00 for the purpose of paying cost of issuance (iii) in the amount of $965,000.00
for the purpose of interest expense, for a total amount of $106,150,000.00 with such amounts subject to
reduction to conform to final figures reflected in bond closing documents and with any excess cost of
issuance funds remaining after closing being transferred to the General Debt Service Fund.
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 27979-09-2025 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: October 28 2025
CITY SECRETARY
Goodall
City Secretary
0000000
FYI., 0 OVo�1�d
�v0 �_�
°° d *�
d�a� nE�pS��p
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/28/25 M&C FILE NUMBER: M&C 25-1000
LOG NAME: 13GENERAL PURPOSE REF BONDS SERIES 2025
SUBJECT
(ALL) Adopt Ordinance Authorizing Issuance and Sale of City of Fort Worth, Texas General Purpose Refunding Bonds, Series 2025, in an
Aggregate Principal Amount Not to Exceed $106,150,000.00; Establishing Parameters with Respect to Sale of the Bonds; Delegating Authority to
Effect Sale of the Bonds by Competitive Bid or Negotiated Sale; Authorizing Escrow and Other Related Agreements; and Enacting Related
Provisions; Adopt Appropriation Ordinance; and Amend the Fiscal Year 2026 Adopted Budget
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance (i) authorizing the issuance of City of Fort Worth, Texas General Purpose Refunding Bonds, Series 2025, in an
aggregate principal amount not to exceed $106,150,000.00, for the purpose of refunding identified outstanding debt and paying the cost of
issuance for the bonds, (ii) delegating to designated City officials authority to effect sale of the bonds - subject to certain parameters as set
forth in the ordinance - by competitive bid or negotiated sale as determined most advantageous based on current market conditions; (iii)
authorizing execution of escrow agreement related to retirement of the refunded obligations and other instruments related to the issuance of
the bonds; (iv) providing for levy, assessment, and collection of a property tax sufficient to pay the interest on and principal of the bonds if
other revenues are not otherwise available and appropriated for those payments; and (v) enacting other provisions related thereto;
2. Adopt the attached appropriation ordinance increasing receipts and appropriations in the General Debt Service Fund in the amount of
$106,150,000.00, subject to the sale of bonds and receipt of proceeds, consisting of (i) $104,385,000.00 for funding the required escrow to
refund existing debt, (ii) $800,000.00 for paying costs of issuance, and (iii) $965,000.00 for interest expense, with such amounts subject to
reduction to conform to final figures reflected in bond closing documents and with any excess cost of issuance amount remaining in the Fund
for future lawful use; and
3. Amend the Fiscal Year 2026 Adopted Budget.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to approve the issuance and sale of Series 2025 General Purpose Refunding
Bonds and to appropriate the proceeds. This action will allow refinancing and restructuring of existing debt obligations, including the General
Purpose Refunding and Improvement Bonds, Series 2015A, and General Purpose Refunding and Improvement Bonds, Series 2016, to achieve
debt service savings.
It is the City's practice to achieve positive debt service savings through refinancing when the opportunity presents itself. Staff and the City's
Financial Advisors, PFM Financial Advisors LLC and Tijerina Financial Consultants LLC, are recommending that the Mayor and Council authorize
the refunding of the callable portions of the Series 2015A and Series 2016 bonds with a combined par amount outstanding of $104,385,000.00.
The actual savings amount will not be determined until the time bids are received. However, in accordance with the City's Financial Management
Policy Statements, the ordinance provides that the refunding debt shall not be sold unless the sale will result in net present value savings of at least
3.00% of the par amount being refunded. Currently, the refunding is projected to provide 4.166% net present value savings, or $3,545,706.32.
Staff anticipates that the refunding bonds will be sold through a competitive bid sale. However, to provide maximum flexibility to address any
disruption to market conditions, the attached ordinance authorizes the City Manager or the Chief Financial Officer to conduct either a competitive
or negotiated sale and to approve the terms of the sale so long as those terms come within the parameters set forth in the Council -adopted
ordinance. Key parameters include that the bonds must be rated in one of the four highest generic rating categories (BBB or higher); the maximum
maturity is March 1, 2036; maximum true interest cost of 5.00%; and maximum net effective interest rate, calculated per chapter 1204 of the
Government Code, is 15.00%. Rating agency calls with Moody's will be conducted prior to the sale of the bonds. Bids for the sale of the bonds are
scheduled to be submitted on or about November 19, 2025. Subsequent to accepting the best bid and awarding the sale of the bonds, the City will
seek approval of the debt transaction from the Texas Attorney General with an estimated closing date on or around December 10, 2025.
The attached appropriation ordinance reflects the maximum appropriation amount for bond proceeds. Its structure accommodates variables
associated with sale of debt. To the extent numbers at closing are less than those reflected in the ordinance, the available appropriation amount
will be reduced as needed to reflect final figures based on the closing documents to ensure appropriations do not exceed actuals. Similarly, to the
extent there are any remaining proceeds after paying cost of issuance expense, those funds will remain in the General Debt Service Fund.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
dP161-11aIk,IMQNi'/_TA0[67►F&i:1:40IdCtLVA0[67►A
The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached ordinances, the sale of the tax-
exempt Series 2025 General Purpose Refunding Bonds will occur as required under the parameters set forth therein, that funds will be available in
the General Debt Service Fund as appropriated, and will be available to repay the debt when due and payable.
Submitted for Citv Manaaer's Office bv: Reginald Zeno 8517
Oriainatina Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Alex Laufer 2268
Expedited