HomeMy WebLinkAbout28099-10-2025 - City Council - OrdinanceOrdinance No. 28099-10-2025
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
TAX NOTE SERIES 2025B FUND IN THE AMOUNT OF $25,000,000.00, FOR THE PURPOSE
OF PAYING (I) CONTRACTUAL OBLIGATIONS INCURRED OR TO BE INCURRED FOR THE
CONSTRUCTION OF PUBLIC WORKS AND THE PURCHASE OF MATERIALS, SUPPLIES,
EQUIPMENT, MACHINERY, BUILDINGS, LANDS, AND RIGHTS-OF-WAY OF IDENTIFIED
PROJECTS AND (II) COSTS OF ISSUANCE OF THE NOTES, WITH SUCH APPROPRIATIONS
SUBJECT TO THE SALE OF TAX NOTES AND RECEIPT OF PROCEEDS AND ALL IDENTIFIED
AMOUNTS BEING SUBJECT TO REDUCTION TO CONFORM TO FINAL FIGURES REFLECTED IN
THE NOTE-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 ITORDAINEDBYTHE CITY COUNCILOFTHE CITY OFFORTWORTH, 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
Tax Note Series 2025B Fund in the amount of $25,000,000.00, for the purpose of paying (i) contractual
obligations incurred or to be incurred for the construction of public works and the purchase of
materials, supplies, equipment, machinery, buildings, lands, and rights-of-way of identified projects and
(ii) costs of issuance of the notes, with such appropriations subject to the sale of tax notes and receipt of
proceeds and all identified amounts being subject to reduction to conform to final figures reflected in the
note-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 ASTOFORMANDLEGALITY: CITY SECRETARY
Jannette S. Goodall
Assistant City Attorney City Secretary
ADOPTED AND EFFECTIVE: October 28, 2025
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/28/25 M&C FILE NUMBER: M&C 25-1006
LOG NAME: 13TAX NOTES SERIES 2025B
SUBJECT
(ALL) Adopt Ordinance Authorizing Issuance and Sale of City of Fort Worth Tax Notes, Series 2025B in an Aggregate Principal Amount Not to
Exceed $25,000,000.00 and Enacting Other Provisions Related to the Subject; and Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance authorizing the issuance and sale of Tax Notes, Series 2025B, in an aggregate principal amount not to exceed
$25,000,000.00; authorizing execution of all related documents; approving the sale of the notes by competitive or negotiated sale as
determined most advantageous based on current market conditions and subject to meeting certain parameters, as set forth in the ordinance;
providing for levy, assessment and collection of a property tax sufficient to pay the interest on and principal of the notes if other revenues are
not otherwise available and appropriated for those payments; and ordaining related matters; and
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Tax Note Series 2025E Fund in the
amount of $25,000,000.00, subject to the sale of tax notes and receipt of proceeds, for the purpose of paying (i) contractual obligations
incurred or to be incurred for the construction of public works and the purchase of materials, supplies, equipment, machinery, buildings,
lands, and rights -of -way of identified projects and (ii) costs of issuance of the notes, with such amounts being subject to reduction to conform
to final figures reflected in the note -closing documents and with any excess cost of issuance funds remaining after closing being transferred
to the General Debt Service Fund.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take actions associated with the issuance and sale of Series 2025E Tax
Notes and appropriation of proceeds for the purpose of paying (i) costs related to certain capital projects and (ii) costs of issuance of the notes.
The anticipated aggregate amount of proceeds from the sale of the Series 2025E Tax Notes is $25,000,000.00.
A portion of the proceeds from sale of the notes will be used to acquire fire apparatus and equipment replacements scheduled for Fiscal Year
2026, including ambulance purchase. The City has used an Equipment Note Program for the City's Fire Department since at least 1999
(Ordinance No. 13701). On an annual recurring basis, tax notes are sold - generally on the open market under a competitive process - and
proceeds are used to finance the equipment replacement program for fire equipment and apparatus. In conjunction with the Fleet Management
Division of the Property Management Department, the Fire Department manages a fleet rotation plan that annually identifies vehicles and
equipment that have reached the end of their useful lives and are too old or costly to continue to utilize or maintain for public safety operations.
Additionally, a portion of the tax notes will also be used to fund the replacement of a bridge at the River Course at the Pecan Valley Golf Course. In
January 2024, a severe winter storm caused significant structural damage to the wing wall (abutment) of the bridge located between the 15th and
18th holes. For public safety, the bridge was closed, and all golf cart and pedestrian traffic was redirected to an alternate route. This closure
required a course rerouting, with hole 15 reconfigured from a Par 4 to a Par 3. Since that time, staff has consistently received complaints about
the extended walk between holes and play on the River Course has declined compared to prior years. On February 25, 2025, City Council
authorized execution of an engineering services agreement with Baird, Hampton & Brown, Inc. in the amount of $325,350.00 for design and
preparation of construction documents for the bridge replacement. The engineer's current estimate for replacement of the bridge is $1.6 million.
The schedule of project costs is listed below:
Project Description
Amount
Fire Apparatus
14,361,000.00
Ambulance Purchase
5,804,000.00
Vehicle Equipment Replacement Fund
3,000,000.00
Pecan Valley Bridge Replacement
1,600,000.00
Cost of Issuance
235,000.00
Total
$25,000,000.00
Staff anticipates that the tax notes 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 notes must be rated in one of the four highest generic rating categories (BBB or higher); the maximum
maturity is March 1, 2032; maximum true interest cost of 6.00%; 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 notes. Ratings are anticipated to be received the week of October 27,
2025. Bids for the sale of the notes are scheduled to be submitted on November 19, 2025. Subsequent to accepting the best bid and awarding the
sale of the notes, the City will seek approval of the debt transaction from the Texas Attorney General with an estimated closing date of December
10, 2025.
The attached appropriation ordinance reflects the maximum appropriation amount for note 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 are to be moved to 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.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon adoption of the actions provided within this Mayor and Council Communication, the sale of the Fiscal
Year 2026 Tax Notes will proceed as necessary to provide funding in the Tax Notes Series 2025B Fund for Fire Apparatus, EMS Ambulance and
vehicle replacement purchases, Pecan Valley Bridge Repair, and Cost of Issuance projects. Prior to any expenditures being incurred, the Property
Management and Financial Management Services Departments have the responsibility to validate the availability of funds.
Submitted for Citv Manaaer's Office bv: Reginald Zeno 8517
Oriainatina Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Alex Laufer 2268
Expedited