HomeMy WebLinkAbout28080-10-2025 - City Council - OrdinanceOrdinance No. 28080-10-2025
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
WATER AND SEWER BOND 2025B FUND, IN AN AMOUNT UP TO $174,680,914.99, FOR
THE PURPOSE OF FUNDING THE EAGLE MOUNTAIN WATER TREATMENT PLANT —
35 MGD EXPANSION PROJECT (CITY PROJECT NO. 105176), WITH SUCH AMOUNT SUBJECT TO
REDUCTION TO CONFORM TO FINAL FIGURES REFLECTED IN BOND CLOSING DOCUMENTS;
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 Water
and Sewer Bond 2025B Fund, in an amount up to $174,680,914.99, for the purpose of funding the Eagle
Mountain Water Treatment Plant — 35 MGD Expansion project (City Project No. 105176), with such amount
subject to reduction to conform to final figures reflected in bond closing documents.
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said prior ordinances and appropriations are hereby expressly repealed.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:
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Denis McElroy
Assistant City Attorney
ADOPTED AND EFFECTIVE: October 21, 2025
CITY SECRETARY
Jannette S. Goodall
City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/21/25 M&C FILE NUMBER: M&C 25-0964
LOG NAME: 13TWDB SERIES 2025B WATER AND SEWER REVENUE BONDS
SUBJECT
(ALL) Adopt Forty -Sixth Supplemental Ordinance Authorizing Issuance of City of Fort Worth Texas Water and Sewer System Revenue
Bonds Series 2025E SWIFT (Eagle Mountain) in the Aggregate Principal Amount of $180,000,000.00, Approving Sale of the Bonds to the Texas
Water Development Board, and Ordaining Related Matters; and Adopt Appropriation Ordinances
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached forty-sixth supplemental water and sewer system revenue bond ordinance authorizing the issuance of City of Fort Worth,
Texas Water and Sewer System Revenue Bonds, Series 2025E SWIFT (Eagle Mountain), in the aggregate principal amount of
$180,000,000.00, approving sale of the bonds to the Texas Water Development Board, and ordaining related matters;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Bond 2025B Fund, in
an amount up to $174,680,914.99, for the purpose of funding the Eagle Mountain Water Treatment Plant — 35 MGD Expansion project (City
Project No. 105176), with such amount subject to reduction to conform to final figures reflected in bond closing documents;
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Fund in the amount of
$354,500.00, from available net position, for the purpose of funding costs of debt issuance, with such amount subject to reduction to conform
to final figures reflected in bond closing documents; and
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Debt Service
Reserve Fund, in an amount up to $5,319,085.01, from available bond sale proceeds and with such amount subject to reduction to conform
to final figures reflected in bond closing documents, for the purpose of funding the required reserve and delegating to the City Manager
authority to transfer such funds to the Water and Sewer Debt Service Fund, if needed, to make principal and/or interest payments on the
Water and Sewer System Revenue Bonds, Series 2025E SWIFT (Eagle Mountain).
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to approve the issuance and sale of revenue bonds to the Texas Water
Development Board (TWDB) to provide funding for the Eagle Mountain Water Treatment Plant — 35 MGD Expansion project (City Project No.
105176); to appropriate proceeds to fund the project and provide a required reserve; and to appropriate operating funds for the costs of issuance.
The project objective is to expand the Eagle Mountain Water Treatment Plant (EMWTP) and increase treatment capacity by 35 MGD. Treatment
technologies include raw water ozonation, flocculation, sedimentation, bio-filtration, membrane filtration, and disinfection. Increasing treatment
capacity at EMWTP provides Fort Worth with the ability to provide service to a growing regional population, while providing more redundancy and
flexibility to adjust pressure plane boundaries and install district metering to existing service areas, which are water loss strategies being
incorporated in Fort Worth. The desired date by which this expansion is planned to be in service is summer 2028 in order to meet the quickly
increasing regional demands of a growing service area in the fastest growing city in the country for both retail and wholesale customers. The
construction contract for the expansion was approved pursuant to Mayor and Council Communication (M&C) 25-0516, and construction
commenced this summer.
The project comes under the auspices of TWDB's State Water Implementation Fund for Texas (SWIFT) program, which provides low-cost financial
assistance for eligible projects. The subsidized interest rates offered by the program are less than traditional debt -financing costs. The estimated
borrowing cost for this debt issuance is 4.17 percent.
In 1991, the City adopted a Master Ordinance establishing a Water and Sewer System Revenue Financing Program for the Water Department.
Each time the City issues debt for the Water and Sewer System, a supplemental ordinance must be adopted which contains details specific to the
debt being issued. This issuance would be the forty-sixth supplemental ordinance since the Master Ordinance was adopted. The Department
tentatively plans a November 17, 2025 closing date for the funds.
Recommendation 2 appropriates sale proceeds to the project, with such amount subject to reduction to conform to actual revenues.
Recommendation 3 appropriates available net position in the Water system operating fund to pay the costs of issuance, with such amount subject
to reduction to conform to actual expenses.
In this instance, TWDB is requiring that a reserve fund be provided and funded (out of bond proceeds) to ensure that, in the unlikely event current
system revenues are not available to support a scheduled debt service payment, monies from the reserve can be used to make such a payment. (If
the City had to use the reserve fund to make a debt service payment, the City would be required under the terms of the bond ordinance to replenish
the reserve from other Water system funds.)
Recommendation 4 adopts an appropriation ordinance for the required reserve amount and provides delegated authority to the City Manager to
move the funds to the appropriate debt service fund in the unlikely event that they are needed to support a debt service appropriation and pay the
interest and/or principal on these bonds. This authority will also allow the City Manager or designee to move the reserve fund amounts to the debt
service fund at the end of the repayment period, when it will be utilized toward the final payments cn the debt.
Note on Appropriations - The attached appropriation ordinances reflect the maximum appropriation amount for bond proceeds and corresponding
required City funds. Their structure accommodates variables associated with sale of debt such as the uncertainty as to final calculations for
issuance costs and required reserve amount. To the extent numbers at dosing are less than those reflected in the ordinances, the available
appropriation amounts will be reduced as needed to reflect final figures based on the closing documents to ensure appropriations do not exceed
actuals.
This debt issuance is part of the Water and Sewer five-year Capital Improvement Program.
A Form 1295 is not required because: This contract will be with a governmental entity, state agency or public institution of higher education: Texas
Water Development Board
FISCAL INFORMATION/ CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the appropriation ordinances this will provide
the necessary budget approval to record the sale of the debt and the associated expenses, contribution to the reserve fund and appropriations to
capital projects. Prior to any expenditure being incurred, the Water Department has the responsibility to validate the availability of funds.
Submitted for 0ity Manager's Office bv: Reginald Zeno 8517
Oriainatina Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Alex Laufer 2268