HomeMy WebLinkAbout28539-06-2026 - City Council - OrdinanceORDINANCE NO.28539-06-2026
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE WATER PRIOR LIEN DEBT SERVICE FUND, IN
THE AMOUNT OF $14,508,478.00, FROM THE USE OF AVAILABLE NET
POSITION, FOR THE PURPOSE OF (i) ADDITIONAL PRINCIPAL PAYMENTS
OF $4,160,000.00, (ii) INTEREST PAYMENTS OF $348,478.00, AND
(iii) ADDITIONAL ARBITRAGE REBATE PAYMENTS OF $10,000,000.00;
PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE
CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS THAT:
SECTION 1.
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 Prior Lien Debt Set -vice Fund in the amount of $14,508,478.00, from the use of available net position,
allocated as follows: (i) additional principal payments of $4,160,000.00, (ii) interest payments of
$348,478.00, and (iii) $10,000,000.00 in arbitrage rebate payments.
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said prior ordinances and appropriations are hereby expressly repealed.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:
Denis C. McElroy
Assistant City Attorney
ADOPTED: June 09, 2026
EFFECTIVE: June 09, 2026
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Jannette S. Goodall
City Secretary
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Ordinance
No.28539-06-2026
Page 1 of 1
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06/09/26 M&C FILE NUMBER: M&C 26-0449
LOG NAME: 13DEBT SERVICE FUNDS BUDGET AMEND FY26
SUBJECT
(ALL) Adopt Appropriation Ordinances to Increase Appropriations in the Water Prior Lien Debt Service Fund and the Stormwater Debt Service
Fund for Additional Current -Year Debt -Related Payments, and Amend the Fiscal Year 2026 Adopted Budget
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water Prior Lien Debt Service Fund in
a total amount of $14,508,478.00, from the use of available net position, allocated as follows: (i) $4,160,000.00 in additional principal
payments, 2) $348,478.00 in additional interest paymetns; and $10,000,000.00 for arbitrage rebate payments;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Stormwater Debt Service Fund in the
amount of $864,280.00, from the use of net position, to support arbitrage rebate payments; and
3. Amend the Fiscal Year 2026 Adopted Budget.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to authorize the use of available net position in the Water Prior Lien Debt Service
Fund and the Stormwater Debt Service Fund to support additional debt -related payments that are due in Fiscal Year (FY) 2026.
After the adoption of the FY2025 budget, the City of Fort Worth (City) issued additional Water and Sewer System debt obligations, including
Combination Tax and Surplus Revenue Certificates of Obligation, Taxable Series 2025 (for the customer -side, lead -service -line replacement) and
Water and Sewer System Revenue Bond, Series 2025B SWIFT (Eagle Mountain). These issuances resulted in principal and interest obligations
due in the current fiscal year in excess of what had been budgeted for already outstanding debt.
In addition, updated arbitrage compliance calculations have identified increased rebate liabilities on several outstanding bond series within the
Water and Sewer System and Stormwater Utility System debt portfolios. These additional payments are required to maintain compliance with
federal tax regulations and to preserve the tax-exempt status of the bonds.
With respect to arbitrage, when proceeds from tax-exempt debt issuances earn interest at a rate higher than the yield on the bonds, the excess
earnings must be remitted to the federal government. Due to recent interest rate changes, several bond issuances within the City's debt portfolios
generated arbitrage earnings, resulting in rebate liabilities. Adoption of the above ordinances appropriates the necessary net position to fund
these payments.
This M&C increases appropriations in the Water Prior Lien Debt Service Fund and the Stormwater Debt Service Fund to ensure sufficient budget
is available to meet all required debt -related payments in FY 2026. Funding is available for appropriation from the net position of the Water Prior
Lien Debt Service Fund and the Stormwater Debt Service Fund for the Financial Management Services Department. The balance of the Water
Prior Lien Debt Service Fund net position is $89,322,919.30, and after these appropriations, the balance will be $74,814,441.30. The balance of
the Stormwater Debt Service Fund net position is $12,329,627.88, and after these appropriations, the balance will be $11,465,347.88.
This will serve ALL COUNCIL DISTRICTS.
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 funds are currently available from the net position of the Water Prior Lien Debt Service Fund and the
Stormwater Debt Service Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds
will be available the respective funds, as appropriated. Prior to any expenditure being incurred, the Financial Management Services Department
has the responsibility of verifying 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