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HomeMy WebLinkAboutOrdinance 18731-07-2009ORDINANCE NO 18731-07 2009 DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE COMBINATION TAX AND LIMITED SURPLUS REVENUE CERTIFICATES OF OBLIGATION SERIES 2009• AND ORDAINING OTHER MATTERS RELATING TO THE SUBJECT WHEREAS the City of Fort Worth expects to pay expenditures in connection with the design, planning, acquisition and construction of the projects described m Exhibit A to this Ordinance prior to the issuance of the Certificates of Obligation hereinafter described, and WHEREAS the City Council hereby finds, considers and declares that the reimbursement 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 itself for such payments at such time as rt issues the heremafter described 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 public, 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 marked 'Exhibit A is a form of notice, the form and substance of which are hereby passed and approved. Section 2 That the City Manager shall cause said notice to be published, in substantially the form attached hereto in a newspaper of general circulation in the City of Fort Worth, Texas, for two consecutive weeks, the date of the first pubhcahon to be before the thirtieth (30th) day before the day tentatively proposed for authorizing the issuance of the Certificates of Obligation as shown in said notice. Section 3 That the facilities and improvements to be financed with proceeds from the proposed Certificates of Obligation are to be used for the purposes described m the attached Notice of Intention. Section 4 That all costs to be reimbursed pursuant to this Ordinance will be capital expenditures, the proposed Certificates 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. 5 That this Ordinance shall be effective immediately from and after its passage in accordance with the provisions of Section 2 of Chapter 25 of the Charter of the Crty and rt is accordingly so ordained. PASSED AND APPROVED this the 28th day of July 2009 Mayor Crty of Fort Worth, T ATTEST Crty Secretary Ci of Fort Worth, Texas APPROVED AS TO FORM. ~. City Attorney City of ~~'~ i_......,~ Fort Worth, Texas {~ ~~ ~`~'», ~, .~.-~- .. (SEAL) -~ ~~ ~~ ,,~ ~~ EXHIBIT A NOTICE OF IN'T'ENTION TO ISSUE COMBINATION TAX AND LIMITED SURPLUS REVENUE CERTIFICATES OF OBLIGATION NOTICE IS HEREBY GIVEN that rt is the intention of the City Council of the City of Fort Worth, Texas, to issue one or more series of the interest bearing certificates of obligation of the City to be entitled 'City of Fort Worth, Texas Combination Tax and Limited Surplus Revenue Certificates of Obligation for the purpose of paying contractual obligations to be incurred by the City to-wit, the construction of street improvements (including freeway interchanges and arterial access) and related drainage and sidewalk improvements throughout the Crty and the acgmsrtion of related traffic and communications equipment; the acquisition of equipment with respect to traffic safety programs of the Crty• the acquisition of software and associated equipment telecommunications system for use by municipal departments, the costs of expanding the City's outdoor warning siren system, the acquisition of firefighting equipment; -the acquisition of computer software for use by City departments, and the payment of fiscal, engineering and legal fees incurred m connection therewith. The City Council tentatively proposes to authorize the issuance of said series (one or more) of Certificates of Obligation at its regular meeting place m the Crty Hall at a meeting to commence at 7 o clock, p.m. on the 1st day of September 2009 The maximum amount of Certificates of Obligation indebtedness that may be authorized to be sold on said date for such purposes described above is $63 655 000 The Crty Council presently proposes to provide for payment of said series (one or more) of Certificates of Obligation from the levy of ad valorem taxes and from a hmrted pledge (not to exceed $1 000) of surplus revenues derived from the operation of the City`s water and sewer system. CITY OF FORT WORTH, TEXAS /sl Mike Moncrief Mayor THE STATE OF TEXAS COUNTIES OF TARRANT AND DENTON CITY OF FORT WORTH I, Marty Hendrix, City Secretary of the Crty of Fort Worth, in the State of Texas, do hereby certify that I have compared the attached and foregoing excerpt from the minutes of the regular open, public meeting of the Crty Council of the Crty of Fort Worth, Texas held on July 28 2009 and of the ordinance authorizing the publication 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 ordnance Said meeting was open to the public, and public notice of the time, place, and purpose of said meeting was given, all as required by Chapter 551 Texas Government Code, as amended. In testimony whereof, I have set my hand and have hereunto affixed the seal of said Crty of Fort Worth, this 28th day of July 2009 A ^ee F (SEAL) ;~°'.~ --~, r: ~. `~~ i ".'s ~ A .... ., r~~g*_ r ` _ ~ '"+" 4 X ~~' a1~S 'iY ~r+x t. /-y,. ~. r „ak ~ _ S ~4' 4 b ~~ ~ r~~ T" k Crty Secretary the City of Fort Worth, Texas 0 O N O i t~ r 0 Z w U Z a z 0 O 0 ti ~ ~ ~ ~ N ~O ~ F d „0 a~ ~ V d ~ Q ~ ~ w Q a t0 ~ U s p v o w ~a v O O O O O O O O O 0 O 0 O 0 O 0 C 0 0 0 O O O O O O O ,,.a g O o O 0 O 0 O 0 O 0 O 0 O 0 O 0 0 0 0 0 O 0 ~ O o O 0 0 O 0 O o O c~ O ~ Q .-t ~ of ~ ~ N ~ ~ ' O h 0 ~ O N O h OO - O O N N ~G V 00 O O O~ ~ M O .•~ O ~O O1 h O t~ V 1 M O ~ 0 Q M 00 O N .~ O~ . i O~ M ~A N O ~ ~O h .r 7 O;, t~ N ~ O~ 00 00 N ~O O M M 'V' N ~ ~ Q O~ ~!' ~ M ~ ~ ..r ~ CT h N ~O 00 In M b9 E/4 4A ~ 619 N 61.3 6A ~ H9 614 N 614 ~ N9 ~ H4 ~ Efi 6A 6A 0 ~ 0 ~ 0 ~ 0 ~ O ~ O ~ O O O O pO S 0 ~ 0 ~ 0 ~ 0 ~ 0 O 0 69 0 O S O O O ~ O ~ O O O O O ~ O O °~ oMO OMO ~ O d OV p O ~ O VMi ~ ~ ! 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Q ~ ~ ~ ~ H > ~ ~ rr ~~,, V y w r .. ~ exi ~ ~v ~ a ° ^o a ~ 8 .~ ~ Q f~ a Gti ~ ~ E y b ~ ~ i ~ ~ O a ~ ~ ~o/ C ~ s +~ ,,, N ~ F j c~ C O S. rn Q = V C E'y C -o ~ ~ >, ~ o ~ a ; Z ~~ ~ L H 61 Z p ~ ^~ o > ~ ~ w ~ ~ Y ~ ~ 3 r s ~~ U ~ U ~ ^ E"' R y o° ~ ~ ~ 61 R ~ ~ ~ O C ~ O ~ O in O ~+ ~ ..~ ~ ~, U li U O 'O C O ~' ~ O V C V ~ ~ y "C ~ fir ~' L ~ s a O ~ ~ ° L~r U ~ ~ ~ ~ ~ 61 R o ~ v ~ Go ~ ~ -c U a 3 a~ ~, W E-+ F Z a ~ rn 0 0 N M N Np U D O 'o c m 0 n ~: a 0 0 Q u.i H 0 z N ~O R m a~ .O a~ ~o U c a U a 0 N City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 7/28/2009 Ord. No: 18731-07-2009 M DATE Tuesday July 28 2009 LOG NAME 132009 CO NOI ~F REFERENCE NO G-16636 SUBJECT Adopt an Ordinance Directing Publication of Notice of Intention to Issue in an Amount Not to Exceed $63 655 000 00 Combination Tax and Limited Surplus Revenue Certificates of Obligation Series 2009 and Ordaining Other Matters Relating to the Subject for the Purpose of Funding Projects Related to the 2007 Critical Capital Needs Program and Other Projects RECOMMENDATION It is recommended that the City Council 1 Adopt the attached ordinance directing the publication of notice of intention to issue an amount not to exceed $63 655 000 00 Combination Tax and Limited Surplus Revenue Certificates of Obligation Series 2009• 2. Approve the form of notice marked 'Exhibit A attached to the ordinance 3 Authorize the City Manager to cause said notice to be published in substantially the form attached hereto in a newspaper of general circulation in the City of Fort Worth Texas for two consecutive weeks the date of the first publication to be before the 30th day before the day tentatively proposed for authorizing the issuance of the Certificates of Obligation as shown in said notice and 4 Authorize the proceeds be used for Critical Capital needs cost over-runs from the 2004 CIP Program acquisition of fire equipment and computer software as described in the attached Notice of Intention DISCUSSION Under the laws of the State of Texas the City Council has the authority to issue Certificates of Obligation (COs) a form of debt, without prior voter approval The City however has established financial policies governing the issuance of such debt. COs may only be used to finance public improvements in special circumstances and only after determining the City's ability to assume additional debt. These criteria include cost overruns on a general obligation bond-financed capital improvement and situations where the timing of the construction of a capital improvement and the expense of calling a bond election for a single proposition would in the opinion of staff and with the approval of the City Council warrant the issuance of Certificates of Obligation to finance the capital improvement. The proposed list of projects described in the attached Notice of Intention including projects related to the 2007 Critical Capital Needs Program as well as other projects qualifies to be eligible for CO financing The maximum amount of the COs sold shall not exceed $63 655 000 00 The exact amount to be issued will be determined once certified appraisal rolls have been received from the Appraisal Districts After the City Council approves this Mayor and Council Communication (M&C) and ordinance the City Manager shall publish the initial Notice of Intent no later than August 1 2009 The second Notice of Logname• 132009 CO NOI Page 1 of 3 Intention will be published the same day of the week following the first notice The City Council will be asked to approve the sale of the certificates and adopt the related ordinance on September 1 2009 The certificates will be sold on a competitive basis through competitive bid It is anticipated that the closing and delivery of the CO funds will occur on September 30 2009 On January 9 2007 and through M&C G-15571 the City Council authorized the issuance of Combination Tax and Limited Surplus Revenue Certificates of Obligation Series 2007 in the amount of $42 325 000 00 to fund part of the Critical Capital Needs Program identified by staff and presented to the City Council on December 11 2006 The identified projects included design costs land acquisition construction and equipping of (i) fire stations throughout the City (ii) the Nashville Police Station and (iii) a public health center owned and operated by the City• the construction of street improvements (including freeway interchanges and arterial access) and the acquisition of related traffic and communications equipment; the acquisition of equipment with respect to traffic safety programs of the City the reconstruction of streets and related drainage and sidewalk improvements throughout the City and the payment of fiscal engineering and legal fees as approved by the City Council in M&C G-15539 on December 19 2006 On September 2 2008 the City Council adopted an appropriation ordinance for proceeds from the sale of $63 150 000 00 Combination Tax and Limited Surplus Revenue Certificates of Obligation Series 2008 to fund projects from the 2007 Critical Capital Needs Program and cost overruns from .the 2004 Capital Improvements Project (M&C G-16262). Series 2007 Critical Capital Needs $42,325,000 Total (Sold) $42 325 000 Series 2008 Critical Capital Needs $51,236 700 Fire/Other $11,913,300 Total (Sold) $63 150 000 Series 2009 (Proposed Sale Critical Capital Needs $35 383 000 Equipment Note Reimbursement $12 181 807 Fire Equipment Purchases (FY10) $4 000 000 2004 Bond Program Overruns $12,090,193 Total $63 655 000 Staff anticipates returning to the City Council for approval of issuance of General Obligation bonds on or before September 1 2009 for projects previously authorized in the voter-approved 2004 and 2008 bond programs FISCAL INFORMATION I CERTIFICATION The Financial Management Services Director certifies that funds will be available upon completion of the sale closing and delivery of the not to exceed $63 655 000 00 Combination Tax and Limited Surplus Revenue Certificates of Obligation, Series 2009 for the projects FUND CENTERS TO FundlAccount/Centers CERTIFICATIONS FROM FundlAccountlCenters Logname• 132009 CO NOI Page 2 of 3 Submitted for City Manager's Office b~ Originating Department Head. Additional Information Contact: Karen Montgomery (6222) Lena Ellis (8517) James Mauldin (2438) Logname• 132009 CO NOI Page 3 of 3