HomeMy WebLinkAbout28258-01-2026 - City Council - OrdinanceOrdinance No.
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
WIFIA REVENUE BOND FUND IN AN INITIAL PRINCIPAL AMOUNT (EXCLUDING
CAPITALIZED INTEREST)NOT TO EXCEED $347,655,441.00,SUBJECT TO THE SALE
OF BOND AND RECEIPT OF PROCEEDS,FOR THE PURPOSE OF FUNDING THE MARY’S
CREEK WATER RECLAMATION FACILITY PROJECTS AND PAYING COSTS
OF ISSUANCE,WITH ALL 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 WATER PRIOR LIEN 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 WIFIA
Revenue Bond Fund, in an initial principal amount (excluding capitalized interest) not to exceed
$347,655,441.00, subject to the sale of bond and receipt of proceeds, for the purpose of funding the Mary’s
Creek Water Reclamation Facility projects and paying costs of issuance, with all 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 Water Prior Lien 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said prior ordinances and appropriations are hereby expressly repealed.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.
CITY SECRETARY
_________________________
Jannette S. Goodall
APPROVED AS TO FORM AND LEGALITY:
___________________________________
Assistant City Attorney City Secretary
ADOPTED AND EFFECTIVE:
City of Fort Worth,
Mayor and
Texas
Council Communication
DATE: 01/13/26 M&C FILE NUMBER: M&C 26-0015
LOG NAME: 13WIFIA SERIES 2026 WATER AND SEWER REVENUE BONDS
SUBJECT
(ALL) Adopt Forty-Seventh Supplemental Ordinance Authorizing the Issuance and Sale of City of Fort Worth, Texas Water and Sewer System
Revenue Bond, Series 2026 (Mary's Creek Water Reclamation Facility Project) (WIFIA ID — N23107TX), in an Initial Principal Amount (Excluding
Capitalized Interest) Not to Exceed $347,655,441.00 and an Aggregate Principal Amount (Including Capitalized Interest Added to the Principal
Amount) Not to Exceed $383,121,297.00; Authorizing Execution of a Water Infrastructure Finance and Innovation Act Loan Agreement with United
States Environment Protection Agency; Delegating to Designated City Officials the Authority to Effect the Sale of the Bond; Enacting Other
Provisions Relating to the Subject; and Waive Financial Policy Requiring Level Debt Service; and Declaring an Immediate Effective Date; and
Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached forty-seventh supplemental ordinance (i) authorizing the issuance and sale of taxable City of Fort Worth, Texas Water and
Sewer System Revenue Bond, Series 2026 (Mary's Creek Water Reclamation Facility Project) (WIFIA ID - N23107TX), in an initial principal
amount (excluding capitalized interest) not to exceed $347,655,441.00 and an aggregate principal amount (including capitalized interest
added to the principal amount) not to exceed $383,121,297.00, for the Mary's Creek Water Reclamation Facility and related infrastructure;
(ii) delegating to designated City officials authority to effect the sale of the bonds; (iii) enacting other provisions relating to the subject; (iv)
and declaring an immediate effective date;
2. Waive the provision in the Financial Management Policy Statements which prohibits revenue debt to be structured with increasing debt
service levels in subsequent years;
3. Authorize execution of a Water Infrastructure Finance and Innovation Act Loan Agreement with United States Environment Protection
Agency; and
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the WIFIA Revenue Bond Fund, in an
initial principal amount (excluding capitalized interest) not to exceed $347,655,441.00, subject to the sale of bond and receipt of proceeds,
for the purpose of funding the Mary's Creek Water Reclamation Facility projects and paying costs of issuance, with all 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 Water Prior Lien Debt Service Fund.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to approve the issuance, sale, and delivery of taxable revenue bonds to the
United States Environmental Protection Agency (EPA) to pay a portion of the eligible project costs of the Mary's Creek Water Reclamation Facility
and related infrastructure and to appropriate proceeds to fund the project.
The City of Fort Worth's Mary's Creek Water Reclamation Facility project will help expand this regional wastewater system to address rapid
population growth and meet needs of customers, which include those living in other cities that are wholesale customers. With the proceeds of this
Water Infrastructure Finance and Innovation Act (WIFIA) loan, the City will design and build a new water reclamation facility, as well as new lift
stations, force mains, and associated wastewater infrastructure (City Project Nos. C01239, 103648, and 104994). Constructing this new facility
reduces the need to implement costly upgrades at the City's other wastewater reclamation facility. This project on the western side of the City also
reduces the need for costly and disruptive capacity improvements to large diameter sewer mains that traverse the downtown corridor and feed into
the existing eastside Village Creek facility. Additionally, this new facility will treat wastewater that can then be used for industrial and irrigation
purposes, reducing reliance on critical drinking water supplies. This project will ultimately help the City provide cost-efficient wastewater services
to current and future customers.
The project comes under the auspices of EPA's WIFIA program, which provides financial assistance with one or more eligible entities to make
secured loans with appropriate security features to finance a portion of the eligible costs of projects that meet the criteria for assistance. The
estimated borrowing cost for this debt issuance is 4.85 percent. The application was completed in late 2024, and the loan is anticipated to close
around January 22, 2026. While the City typically issues bonds with a level debt service structure, for this issuance that will not be the case.
Therefore, a waiver of the level-debt-service policy is being recommended.
In 1991, the City adopted a Master Ordinance establishing a Water & Sewer System Revenue Financing Program for the Water Department. Each
time the City issues debt for the Water & Sewer System, a supplemental ordinance must be adopted which contains details specific to the debt
being issued. This issuance would be the forty-seventh supplemental ordinance since the Master Ordinance was adopted.
Recommendation 4 appropriates sale proceeds to the project and costs of issuance, with such amount subject to reduction to conform to actual
revenues. Similarly, to the extent there are any remaining proceeds after paying cost of issuance expense, those funds are to be moved to the
Water Prior Lien Debt Service Fund. To the extent proceeds are received for capitalized interest costs, those amounts will be deposited in
Water's debt service fund and appropriated in the future fiscal years when debt service payments are to be made therefrom.
A Form 1295 is not required because: This contract will be with a governmental entity, state agency or public institution of higher education: United
States Environmental Protection Agency
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the appropriation ordinance this will provide
the necessary budget approval to record the sale of the debt and the associated expenses 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 City Manager's Office b� Reginald Zeno 8517
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Alex Laufer 2268