HomeMy WebLinkAbout26-6334 - City Council - Resolution (3)A Resolution
NO. 26-6334
CALLING A PORTION OF THE CITY OF FORT WORTH, TEXAS
DRAINAGE UTILITY SYSTEM REVENUE REFUNDING BONDS,
SERIES 2016 FOR REDEMPTION PRIOR TO MATURITY; AND
ENACTING OTHER PROVISIONS RELATING TO THE SUBJECT
WHEREAS, the City of Fort Worth, Texas (the "City") previously issued its Drainage
Utility System Revenue Refunding Bonds, Series 2016 (the "Bonds"); and
WHEREAS, in the ordinance that authorized the issuance of the Bonds (the "Bond
Ordinance"), the City reserved the option to redeem Bonds maturing on February 15, 2027, in
whole or in part, at a price equal to the principal amount of the Bonds so called for redemption
plus accrued interest to the redemption date, beginning on February 15, 2026, or on any date
thereafter; and
WHEREAS, the City Council of the City finds and determines that it is necessary and in
the best interests of the City to redeem the outstanding Bonds described below with funds available
for such purpose in accordance with the terms hereof; and
WHEREAS, it is officially found, determined and declared that the meeting at which this
Resolution has been adopted was open to the public and public notice of the date, hour, place and
subject of said meeting, including this Resolution, was given, all as required by the applicable
provisions of Texas Government Code, Chapter 551;
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS, THAT:
Section 1. Findings. The declarations, determinations and findings declared, made and
found in the preamble to this Resolution are hereby adopted, restated and made a part of the
operative provisions hereof.
Section 2. Redemption of Bonds. The Bonds listed in Exhibit A hereto (the
"Redeemed Bonds") are hereby called for redemption on July 1, 2026 (the "Redemption Date").
The Redeemed Bonds shall be paid on the Redemption Date and interest on the Redeemed Bonds
shall cease to accrue on the Redemption Date.
Section 3. Authorization of Actions. (a) The City Manager of the City is hereby
authorized and directed to deliver to BOKF, NA, Dallas, Texas, the Paying Agent/Registrar for
the Bonds ("BOKF"), a notice of redemption with respect to the Redeemed Bonds in substantially
the form attached hereto as Exhibit A, and to direct BOKF to send notice of redemption of the
Redeemed Bonds to the bondholders in accordance with the Bond Ordinance.
(b) The Redeemed Bonds shall be presented for redemption at BOKF and shall not bear
interest after the Redemption Date.
(c) On or before the Redemption Date, the City shall deposit with BOKF funds in an
amount sufficient to provide for the redemption of the Redeemed Bonds on the Redemption Date.
Lawfully available funds of the City are hereby authorized and appropriated in the amounts
necessary for such purpose.
(d) The City Manager is hereby authorized and directed to take such actions and to execute
and deliver such documents, orders and receipts, including without limitation material events
notices with respect to the Redeemed Bonds, as necessary or appropriate to consummate the
transactions authorized by this Resolution and to redeem the Redeemed Bonds in accordance with
the provisions and requirements of the Bond Ordinance.
Section 4. Effective Date. This Resolution shall be effective from and after its passage
by the City Council.
[Remainder of page left blank intentionally]
Adopted this June 23, 2026
Mayor
City of Fort Worth, Texas
ATTEST:
Janne S. Goodall, City Secretary
City df,frort Worth, Texas
APPROVED AS TO FORM AND LEGALITY:
ty Attorney
City of Fort Worth, Texas
(City Seal)
j
Signature Page — Resolution Authorizing Redemption of City of Fort Worth, Texas
Drainage Utility System Revenue Refunding Bonds, Series 2016
Exhibit A
CONDITIONAL NOTICE OF REDEMPTION
CITY OF FORT WORTH, TEXAS
DRAINAGE UTILITY SYSTEM REVENUE REFUNDING BONDS, SERIES 2016
NOTICE IS HEREBY GIVEN that the City of Fort Worth, Texas (the "City") has called for redemption
the outstanding Bonds ("Redeemed Bonds") of the City described as follows:
CITY OF FORT WORTH, TEXAS DRAINAGE UTILITY SYSTEM REVENUE REFUNDING BONDS,
SERIES 2016, maturing on February 15 in the years and in the amounts shown below. Such Redeemed
Bonds have been called for redemption on July 1, 2026 (the "Redemption Date") at a redemption price
equal to the principal amount thereof plus accrued interest to the Redemption Date (the "Redemption
Price"):
Principal
Principal
Amount
Principal
Maturity
Amount
Being
Amount
Date
Outstanding
Redeemed
Remaining
CUSIP No.
2027
$ 1,150,000
$ 1,150,000
$ 0
34944RDK1
2028
1,185,000
1,185,000
0
34944RDL9
2029
1,235,000
1,235,000
0
34944RDM7
2030
1,285,000
1,285,000
0
34944RDN5
2031
1,330,000
1,330,000
0
34944RDP0
2032
1,370,000
1,370,000
0
34944RDQ8
2033
1,415,000
1,415,000
0
34944RDR6
SUCH REDEMPTION IS SUBJECT to the deposit of the Redemption Price with BOKF, NA ("BOKF"),
the paying agent for the Redeemed Bonds, on or prior to the Redemption Date. If for any reason the City
does not deposit, on or before the Redemption Date, sufficient moneys to pay the Redemption Price, this
conditional notice of redemption shall be automatically cancelled, and the Redeemed Bonds shall remain
outstanding. In such event, any Redeemed Bonds that have already been presented for payment will be
returned.
UPON PRESENTATION of the Redeemed Bonds at the Paying Agent/Registrar on the Redemption Date,
the holder thereof shall be entitled to receive the Redemption Price equal to par and accrued interest to the
Redemption Date.
NOTICE IS FURTHER GIVEN that due and proper arrangements have been made for providing the place
of payment of the Redeemed Bonds called for redemption with funds sufficient to pay the principal amount
of the Redeemed Bonds and the interest thereon to the Redemption Date. In the event the Redeemed Bonds
are not presented for redemption by the Redemption Date, they shall not thereafter bear interest.
THIS NOTICE is issued and given pursuant to the redemption provisions in the proceedings authorizing
the issuance of the Redeemed Bonds and in accordance with the recitals and provisions of each of the
Redeemed Bonds, respectively.
CITY OF FORT WORTH, TEXAS
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 defense 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 M&C 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 INFORMATION/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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