HomeMy WebLinkAbout27660-05-2025 - City Council - OrdinanceOrdinance No. 27660-05-2025
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN
THE TAX NOTE SERIES 2025 FUND, IN THE AMOUNT OF $63,950,000.00, 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 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 2024-2025 in the Budget of
the City Manager, there shall also be increased estimated receipts and appropriations in the Tax Note Series 2025 Fund
in the amount of $63,950,000.00, 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 27107-09-2024 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: May 13, 2025
CITY SECRETARY
Jannette S. Goodall
City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 05/13/25 M&C FILE NUMBER: M&C 25-0419
LOG NAME: 13TAX NOTES SERIES 2025
SUBJECT
(ALL) Adopt Ordinance Authorizing Issuance and Sale of City of Fort Worth Tax Notes, Series 2025 in an Aggregate Principal Amount Not to
Exceed $63,950,000.00 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 2025, in an aggregate principal amount not to exceed
$63,950,000.00; authorizing execution of all related documents; and 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 2025 Fund in the
amount of $63,950,000.00, 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.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take actions associated with the issuance and sale of Series 2025 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 2025 Tax Notes is $62,950,000.00.
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. A portion of the proceeds from sale of the notes
will be used to acquire fire apparatus and equipment replacements scheduled for Fiscal Year 2025.
Additionally, a portion of the tax notes will also be used to fund the Consolidated Emergency Communication Building Upgrades, as well as fufilling
funding gaps related to 2022 bond program capital projects including: the WJ Boaz Rd West Half, the 2022 Neighborhood Street Program
and Avondale Haslet Road.
The schedule of project costs is listed below:
JProject Description I Amount
(Fire Apparatus Replacement 1 $13,801,000.00
Consolidated Emergency Communication Building $3,199,000.00
Upgrades
JWJ Boaz Rd West Half 1$30,800,000.00
I12022 Neighborhood Street Program $10,000,000.00
JAvondale Haslet Road $5,150,000.00
(Cost of Issuance $1,000,000.00
Total $63,950,000.00
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, Fitch, and Kroll will be conducted prior to the sale of the notes. Ratings are anticipated to be received the week
of May 12, 2025. Bids for the sale of the notes are scheduled to be submitted on August 5, 2025. Subsequent to accepting the best bid and
awarding the sale of the notes, the City will seek approval of the debt transactions from the Texas Attorney General with an estimated closing date
of August 21, 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 2025 Tax
Notes will proceed as necessary to provide funding in the Tax Notes Series 2025 Fund for the Fire Apparatus 2025 Tax Notes, Consolidated
Emergency Communication Building Upgrades, WJ Boaz Rd West Half, 2022 Neighborhood Street Program, Avondale Haslet Road 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: Anthony Rousseau 8338