HomeMy WebLinkAbout26-28606 - City Council - OrdinanceORDINANCE NO. 26-28606
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE STORMWATER DEBT SERVICE FUND IN THE
TOTAL AMOUNT OF $9,150,000.00, FROM AVAILABLE FUND BALANCE, FOR
THE PURPOSE OF FUNDING DEFEASANCE OF OUTSTANDING DRAINAGE
SYSTEM DEBT SERVICE OBLIGATIONS, WITH SUCH AMOUNT SUBJECT TO
REDUCTION TO CONFORM TO FINAL FIGURES AT THE TIME OF
DEFEASANCE; 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 an increase in estimated receipts and appropriations in the
Stormwater Debt Set -vice Fund in the total amount of $9,150,000.00, from available fund balance, for the
purpose of funding defeasance of outstanding Drainage System debt service obligations, with such amount
subject to reduction to conform to final figures at the time of defeasance;
SECTION 2.
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.
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said prior ordinances and appropriations are hereby expressly repealed.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.
APPR�OVED AS TO FORM AND LEGALITY:
Denis C. McElroy Jannette S. Goodall
Assistant City Attorney City Secretary
ADOPTED: June 23, 2026
EFFECTIVE: June 23, 2026
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Ordinance No. 26-28606
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FORT WORTH
MAYOR AND COUNCIL COMMUNICATION
7.1.10 CASH DEFEASANCE SERIES 2016 BONDS
DATE: 06/23/26 M&C FILE NUMBER: M&C 26-0519
DEPARTMENT: FINANCIAL MANAGEMENT SERVICES
SUBJECT
(ALL) Adopt Resolution Authorizing Cash Defeasance of Drainage Utility System Revenue
Refunding Bonds, Series 2016 to Achieve Savings; Adopt Appropriation Ordinance; and Amend
the Fiscal Year 2026 Adopted Budget
RECOMMENDATION
It is recommended that the City Council:
1. Adopt the attached resolution authorizing cash defeasance of City of Fort Worth, Texas
Drainage Utility System Revenue Refunding Bonds, Series 2016, including principal,
accrued interest, and transaction costs, to achieve projected net present value savings
in the estimated amount of $386,430.18 or 4.31 percent;
2. Adopt the attached ordinance increasing estimated receipts and appropriations in the
Stormwater Debt Service Fund in the total amount of $9,150,000.00, from available fund
balance, for the purpose of funding defeasance of outstanding Drainage System debt
service obligations, with such amount subject to reduction to conform to final figures at
the time of defeasance; and
3. Amend the Fiscal Year 2026 Adopted Budget.
DISCUSSION
The purpose of this Mayor and Council Communication (M&C) is to take actions associated
with defeasance of outstanding Drainage System debt service obligations in order to achieve
savings.
Each year, the Financial Management Services Department, in conjunction with the City's
financial advisors, PFM Financial Advisors LLC, and Tijerina Financial Consultants LLC, evaluate
the City's financial position and its debt portfolio to identify opportunities to refund
(refinance) and/or defease outstanding debt obligations to achieve net savings and/or free
up capacity for future debt -funded projects. This strategy supports the City's initiative of
being good stewards of taxpayers' money.
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FORT WORTH
The attached resolution authorizes the recommended cash defeasance further described
below:
City of Fort Worth, Texas, Drainage Utility System Revenue Refunding Bonds, Series 2016
Series 2016 was issued for an initial principal amount of $17,505,000.00 for the purpose of
refunding of outstanding obligations to achieve debt service savings. Series 2016 is callable
on or after February 15, 2026, at a price of par plus accrued interest to the redemption date.
The cash defeasance would be for the approximate amount of $9,150,000.00, which
represents $8,970,000.00 of remaining principal of the Series 2016 Bonds maturing February
15, 2027 through February 15, 2033; and accrued interest and transaction costs.
Defeasance of the identified maturities will achieve projected net present value savings in the
estimated amount of $386,430.18 or 4.31 percent. Following the defeasance, the Stormwater
Debt Service Fund will have no remaining Series 2016 maturities
Adoption of this MSC will increase appropriations in the total amount of $9,150,000.00 from
use of available fund balance in the Stormwater Debt Service Fund in excess of required
reserve amounts. If approved, defeasance of the identified maturities would occur on or
about July 1, 2026.
The action in this M&C will amend the Fiscal Year 2026 Adopted Budget as approved in
connection with Ordinance 27979-09-2025, Section 3. Stormwater Debt Service Fund, as listed
on page 13.
NOTE ON APPROPRIATIONS - The attached appropriation ordinance reflects the maximum
additional appropriation amount for this defeasance. The structure accommodates variables
in costs that are associated with the transaction date being a month away. To the extent
numbers at the time of defeasance are less than those reflected in the ordinance, the
available appropriation amount will be reduced as needed to reflect final figures to ensure
appropriations do not exceed actuals.
This M&C does not request approval of a contract with a business entity.
FISCAL IN FOR MATION/CERTIFICATION
The Director of Finance certifies that upon adoption of the attached resolution and
appropriation ordinance, funds for principal, accrued interest, and transaction costs will be
available in the Stormwater Debt Service Fund, as appropriated, to legally defease the above
referenced obligations.
SUBMITTED FOR CITY MANAGER'S OFFICE BY: Reginald Zeno, # 8517
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FORT WORTH
ORIGINATING BUSINESS UNIT HEAD: Reginald Zeno, # 8517
ADDITIONAL INFORMATION CONTACT: Alex Laufer, # 2268
ATTACHMENTS
1. Fort Worth Redemption of Series 2016 2019 Drainage Bonds Redemption Resolution (1)
[7.1.10.1 - 4 pages]
2. CASH DEFEASANCE SERIES 2016 BONDS AO [7.1.10.3 - 2 pages]
3. CONFIDENTIAL REDACTED - CASH DEFEASANCE SERIES 2016 BONDS funds availability
[7.1.10.4 - 1 page]
4. CONFIDENTIAL REDACTED - Stormwater Series 2016 Cash Defeasance FID Table (4)
[7.1.10.6 - 1 page]
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