HomeMy WebLinkAbout28547-06-2026 - City Council - OrdinanceORDINANCE NO. 28547-06-2026
DIRECTING PUBLICATION AND POSTING OF NOTICE OF INTENTION
TO ISSUE CERTIFICATES OF OBLIGATION; EXPRESSING OFFICIAL
INTENT TO REIMBURSE COSTS OF PROJECTS; AND ORDA.INING
O'THER MATTERS RELATII�tG TO TI� SUBJECT
WHEREAS, the City Council (the "Council") of the City of Fort Worth, Texas (the
"City"), deems it advisable to give notice of intention to issue certificates of obligation of the
City (the "Certificates of Obligation") payable from ad valorem taxes and from a limited piedge
of the surplus i•evenues of the City's combined waterwoi•lcs and sanitary sewer system, as
provided herein and in Exhibit A hereto; and
WHEREAS, the City expects to pay expenditures in connection with the design,
planning, acquisition and construction of the projects described in Exhibit A to this Oi�dinance
prior to the issuance of the hereinafter described Certificates of Obligation; and
WHEREAS, the Council hereby finds, considers and declares that the r•eimbursement of
the payment by the City of such expenditures will be appropriate and consistent with the lawful
objectives of the City and, as such, chooses to declare its intention, in accordance with the
provisions of Section 1.150-2 of the U.S. Treasury Regulations, to reimburse itseif for such
payments at such time as it issues the Certificates of Obligation; and
WHEREAS, it is hereby officially found and determined that the meeting at which this
Ordinance was considered was open to the pubiic, and public notice of the time, place and
purpose of said meeting was given, all as required by Chapter 551, Texas Government Code.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
Section 1. That attached hereto and marlced Exhibit A is the form of notice (the
"Notice"), the form and substance of which are hereby passed and approved.
Section 2. That the City Manager shall cause the Notice to be (a) published, in
substantiaily the form attached hereto, in a newspaper of general circulation in the City, once a
week for two consecutive weelcs, the date of the first publication to be before the forty-fifth (45t�')
day before the day tentatively proposed for authorizing the issuance of the Certificates of
Obligation as shown in the Notice and (b) posted, in substantially the form attached hereto,
continuously on the City's internet website for at least forty-iive (45) days before the day
tentatively proposed for authorizing the issuance of the Certificates of Obligation as shown in the
Notice.
Section 3. That the impi•ovements to be financed with proceeds from the proposed
Certificates of Obligation are to be used for the purposes described in the attached Notice.
Section 4. That attached hereto as Schedule I is a list of outstanding debt obligations of
the City which the City hereby designates as self-supporting debt for pltrposes of Subchapter C
of Chapter 271, Texas Local Government Code, as amended.
Section 5. That all costs to be i•eimbur•sed pursuant to this Ordinance wili be capital
expenditures; the proposed Certiiicates of Obligation shall be issued within 18 months of the
later of (i) the date the expenditures are paid or (ii) the date on which the property, with respect
to which such expenditures were made, is placed in service; and the foregoing notwithstanding,
the Certificates of Obligation will not be issued pursuant to this Ordinance on a date that is more
than three years after the date any expenditure which is to be reimbursed is paid.
Section 6. That this Ordinance shall be effective immediately from and after its passage,
and it is accordingly so ordained.
�Execartion page folloivsJ
ADOPTED AND EFFECTIVE June 9, 2026
ATTEST:
Ci ect�etary
Ci of Fort Worth, Texas
APPROVED AS TO FORM:
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Signature Page — Ordinance Autl�orizi��g Publication and Posting of Notice of Intent to Issue Certificates of Obligation
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City of Fort Worth, Texas
Exhibit A
NOTICE OF INTENTION TO ISSUE
COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION
NOTICE IS HEREBY GIVEN that it is the intention of the City Council (the "Council")
of the City of Fort Worth, Texas (the "City"), to issue one or more series of interest bearing
certificates of obligation of the City to be entitled "City of Fort Worth, Texas Combination Tax
and Revenue Certificates of Obligation," or such other designation set forth in the ardinance or
ordinances authorizing their issuance, for the purpose of paying all or a portion of the City's
contractual obligations incurred in connection with the (i) construction and improvement of
st�eets, roads, bridges and parking facilities, including related drainage, signalization,
landscaping, sidewallcs, lighting, utility z•elocation and replacement, signage and streetscape
improvements; (ii) construction, improvement and equipment of municipal parks and recreation
facilities that are genei•ally accessible to the public and are part of the City's park system;
(iii) construction, improvement and equipment of administrative office and depai�tmental space
for governmental functions of the City at existing buildings or facilities; (iv) construction,
improvement and equipment of public safety facilities, including municipai court and police
facilities and facilities physically attached to such public safety facilities; and (v) payment of
legal, fiscal and engineering fees in connection with such projects. The Council tentatively
proposes to authorize the issuance of said ser•ies (one oi• more) of Certiiicates of Obligation at its
regular meeting place in the City Hall at a meeting to commence at 6:00 o'clock, p.m., on the l ltn
day of August, 2026. In the event the Council will be unable to meet at City Hall on August 11,
2026, the City will post information on its website foi• attending the meeting by telephone,
teleconference oi• other electl�onic means. The maximum principal amount of Certificates of
Obligation that may be authorized to be sold on said date for such purposes described above is
$104,000,000. The Council presently proposes to provide foz• the payment of said series (one or
more) of Certificates of Obiigation from the levy of ad valorem taxes and from a limited pledge
of surplus revenues derived from the operation of the City's combined waterworks and sanitary
sewei• system (the "System") that remain after payment of all operation and maintenance
expenses thereof, and after all debt seivice, reserve and other requirements in connection with all
revenue bonds or other obligations (now or hereafter outstanding) of the City have been met, to
the extent that such obligations are payable fi•om all or any part of the net revenues of the
System.
In accordance with the provisions of Subchapter C of Chapter 271, Texas Local
Government Code, as amended ("Chapter 271 "), the following information has been provided by
the City (exchides $73,775,000 principal amount of outstanding debt obligations the City has
designated as seif-supporting and which the City reasonably expects to pay from revenue sources
other than ad valorem taxes; provided, however, that in the event such self-supporting revenue
sources are insufficient to pay such debt service, the City is obligated to levy ad valorem taxes to
pay such debt obligations): (i) the principal amount of all outstanding debt obligations of the City
is $1,044,335,000; (ii) the current combined principal and interest requii•ed to pay all outstanding
debt obligations of the City on time and in full is $1,319,283,486; (iii) the maximum principal
amount of the Certificates of Obligation to be authorized is $104,000,000; (iv) the estiinated
combined principal and interest required to pay the Certificates of Obligation to be authorized on
time and in full is $178,651,535; (v) the maxiinum interest rate for the Certificates of Obligation
may not exceed the maximum legal interest rate; and (vi) the maximum matui•ity date of the
Certificates of Obligation to be authorized is March 1, 2056. The ordinance designating certain
outstanding debt obligations of the City as self-supporting for puiposes of Chapter 271 is
available upon request to the City at the address noted above.
CITY OF FORT WORTH, TEXAS
/s/ Mattie Parlcer
Schedule I
CITY OF FORT WORTH, TEXAS
Self-Supporting Debt
The City designates ail or a portion of the following outstanding debt obligations of the City as
self-suppoi-ting debt for purposes of Subchapter C of Chapter 271, Texas Local Government
Code, as amended:
General Purpose Refunding and Improvement Bonds, Sei�ies 2015A;
General Purpose Refunding and Improvement Bonds, Series 2016;
General Purpose Refunding and Improvement Bonds, Series 2020;
General Purpose Refunding Bonds, Taxable Series 2021;
Combination Tax and Revenue Certificates of Obligation, Series 2021; and
Combination Tax and Revenue Certificates of Obligation, Series 2023.
THE STATE OF TEXAS
COUNTIES OF TARRANT, DENTON, PARKER, WISE AND JOHNSON
CITY OF FORT WORTH
I, Jannette Goodall, City Secretary of the City of Fort Worth, in the State of Texas (the
"City"), do hereby certify that I have compared the attached and foregoing excerpt fi�oin the
minutes of the regular, open, public meeting of the City Council of the City held on June 9, 2026,
and of the ordinance authorizing the publication and posting of notice of intention to issue
Certificates of Obligation, which was duly passed at said meeting, and that said copy is a true
and correct copy of said excerpt and the whole of said ordinance. Said meeting was open to the
public, and public notice of the time, place and purpose of said meeting was given, all as
requii•ed by Chapter 551, Texas Government Code, as amended.
In testimony whereof, I have set my hand and have hereunto affixed the seal of the City
of Fort Worth, this � day of June, 2026.
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i Secretary of the
i of Fort Worth, Texas
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06/09/26 M&C FILE NUMBER: M&C 26-0453
LOG NAME: 13NOTICE OF INTENTION-SERIES 2026 CERTIFICATES OF OBLIGATION
SUBJECT
(ALL) Adopt Ordinance Directing Publication and Posting of Notice of Intention to Issue Combination Tax and Revenue Certificates of Obligation in
an Amount Up to $104,000,000.00 for Improvements to Various City Streets, Facilities, and Infrastructure, and Expressing Intent to Reimburse
Initial Project Expenditures from Proceeds if Debt Is Issued
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance, which directs publication and posting of notice of the City's intention to issue
Combination Tax and Revenue Certificates of Obligation, Series 2026, in an amount up to $104,000,000.00 for the purpose of paying all or a
portion of the City's contractual obligations incurred in connection with the (i) construction and improvement of streets, roads, bridges and parking
facilities, including related drainage, signalization, landscaping, sidewalks, lighting, utility relocation and replacement, bridges, signage and
streetscape improvements; (ii) construction, improvement and equipment of municipal parks and recreation facilities that are generally accessible
to the public and are part of the City's park system; (iii) construction, improvement and equipment of administrative office and departmental space
for governmental functions of the City; (iv) construction, improvement and equipment of public safety facilities, including municipal court and police
facilities; and (v) payment of legal, fiscal and engineering fees in connection with such projects; approves the form of notice; directs notice to be
published and posted in accordance with state law; and expresses official intent for the City to reimburse itself from proceeds of the debt sale, if
debt is issued, for project-related expenditures incurred prior to issuance.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to take preliminary actions in preparation for the authorization and issuance of
Certificates of Obligation (C.O.$) for the purpose of paying all or a portion of the City's contractual obligations incurred in connection with the (i)
construction and improvement of streets, roads, bridges and parking facilities, including related drainage, signalization, landscaping, sidewalks,
lighting, utility relocation and replacement, bridges, signage and streetscape improvements; (ii) construction, improvement and equipment of
municipal parks and recreation facilities that are generally accessible to the public and are part of the City's park system; (iii) construction,
improvement and equipment of administrative office and departmental space for governmental functions of the Ciry (iv) construction, improvement
and equipment of public safety facilities, including municipal court and police facilities; and (v) payment of legal, fiscal and engineering fees in
connection with such projects.
Under state law the City Council has the authority to issue C.O.s without explicit prior voter approval, provided that notice must be published and
the public provided an opportunity to petition for an election to be held. In addition, the City has established financial policies governing the
issuance of C.O.s that limit their use to finance public improvements in special circumstances and only after determining the City's ability to
assume additional debt. An example of special circumstances is a situation, such as the one posed here, where it would be more economical to
issue C.O.s rather than revenue bonds.
The projects qualify for C.O. financing under both state law and City policy.
Staff is recommending issuance of combination tax and revenue C.O.s with the City's taxing authority and a limited pledge of surplus water and
sewer revenues (up to $1,000.00). Making a limited pledge of surplus water and sewer revenues meets state law provisions that require
identification of a revenue source when selling the C.O.s for cash to then fund the project, which the City anticipates doing here. Pledging the City's
tax authority will allow the debt financing to achieve a more favorable interest rate.
Upon City Council approval, the City Manager shall publish the initial Notice of Intention on June 12, 2026 and will post the notice on the City's
website at the same time. The second Notice of Intention will be published on the same day of the week following the first notice.
An ordinance to authorize issuance and delegate authority for the sale of the C.O.s is scheduled to be brought back for Council consideration on
August 11, 2026. The C.O.s are intended to be sold on a competitive basis with closing and delivery of the C.O. funds anticipated to occur in the
late summer/early fall timeframe.
In addition to setting the form of notice and directing its publication, adoption of the attached ordinance would also serve as the City Council's
adoption of a formal statement of intent to reimburse preliminary costs for the projects out of the issuance from the certificates. This aspect of the
ordinance does not obligate the City to sell C.O.s, but preserves the ability for the City to reimburse itself from tax-exempt debt proceeds if it
does. This mechanism allows projects to continue forward utilizing other funds until debt proceeds are available. Any expenses incurred against
an initial funding source would be repaid out of debt proceeds following issuance, sale, and receipt of proceeds.
This serves 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 approval of this recommendation will have no material effect on City funds.
Submitted for City Manager's Office by: Reginald Zeno 8517
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Alex Laufer 2268