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HomeMy WebLinkAboutOrdinance 17463-03-2007Ordinance No. 17463-03-2007 AN ORDINANCE INCREASING APPROPRIATIONS IN THE WATER AND SEWER CAPITAL PROJECTS FUND IN THE AMOUNT OF $50 000 000 FROM AVAILABLE FUNDS FOR THE PURPOSE OF FUNDING INTERIM FINANCING FOR THE CONSTRUCTION OF ELIGIBLE PROJECTS FOR THE CITY'S WATERWORKS AND SEWER SYSTEM, PROVIDING FOR A SEVERABILITY CLAUSE, MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES 1N CONFLICT HEREWITH, AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS SECTION 1 That m addition to those amounts allocated to the various City departments for Fiscal Year 2006-2007 m the Budget of the City Manager there shall also be increased appropriations m the Water and Sewer Capital Projects Fund m the amount of $50 000 000 from available funds for the purpose of funding interim financing for the construction of eligible projects for the City's waterworks and sewer system. 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, opuuon or judgment shall m no way unpa~r 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 No 17142 and all other ordinances and appropriations amending the same except m those instances where the provisions of this ordinance are m direct conflict vv~th such other ordinances and appropriations, m which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 VED AS TO FORM AND LEGALITY ~i1~-'~ Assistant City Attorney ADOPTED AND EFFECTIVE. March 27, 2007 Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION Approved on 3/27/2007 Ord Nos. 17462-03-2007 8~ 17463-03-2007 DATE Tuesday March 27 2007 LOG NAME 1313PAPERAMEND REFERENCE NO C-22028 SUBJECT Adopt an Amended and Restated Ordinance Approving and Authorizing the Issuance of Water and Sewer System Commercial Paper Notes in an Aggregate Principal Amount at Any One Time Outstanding Not to Exceed $150 000 000 00 to Provide Interim Financing to Pay Project Costs for Eligible Projects for the City's Waterworks and Sewer System and to Refund Obligations Issued in Connection with an Eligible Project; Approving and Authorizing Certain Authorized Officers and Employees to Act on Behalf of the City in the Selling and Delivery of Such Short Term Obligations and Resolving Other Matters Incident and Related to the Issuance Sale Security and Delivery of Commercial Paper Notes RECOMMENDATION It is recommended that the City Council 1 Adopt the attached amended and restated ordinance approving and authorizing the issuance of commercial paper notes in an amount not to exceed $150 000 000 00 to provide interim financing for the construction of eligible projects for the City's waterworks and sewer system and 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Capital Project Funds by $50 000 000 00 DISCUSSION Approval of this M&C will reauthorize the existing $100 000 000 00 Water and Sewer Commercial Paper Program make available an additional $50 000 000 00 in appropriation authority for eligible projects and further authorize the issuance of commercial paper notes if necessary to provide interim construction financing for those projects. The commercial paper program allows the City to deliver capital projects in one of two ways The City can issue commercial paper notes for interim financing or use the commercial paper authority to initiate the project and use cash from the City portfolio to fund projects until such time as the City issues debt to replenish the portfolio This is the same practice where commercial paper has been used to support previous Water and Sewer capital projects, as well as the 1998 and 2004 capital projects bond programs The City's financial advisors and the City staff recommend retaining Lehman Brothers to market any notes that may be issued The advisors and staff also recommend retaining Bank of America with the highest short-term credit ratings available to provide the liquidity facility and U S Bank Trust National Association as the Issuing/Paying Agent, if required http.//www cfwnet.org/council~acket/Reports/mc~nnt.asp 3/29/2007 Page 2 of 2 FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that certifies that upon adoption of the attached ordinance and appropriation ordinance funds will be available in the current capital budgets, as appropriated of the Water and Sewer Capital Projects Funds. TO Fund/Account/Centers P264 541200 601159990100 $40,000,000.00 P274 485107 701139990100 $10,000,000.00 P274 541200 701139990100 $10,000,000.00 P264 485107 601159990100 $40,000,000.00 FROM Fund/AccountlCenters Submitted for City Manager's Office b~ Karen Montgomery (6222) Originating Department Head. Richard Zavala (Acting) (8517) Additional Information Contact: Robert Shook (2438) http.//www.cfwnet.org/council~acket/Reports/mc~nnt.asp 3/29/2007