HomeMy WebLinkAboutOrdinance 15933Ordinance No I ~`1 J~J..
ORDINANCE AMENDING AN ORDINANCE AUTHORIZING
ISSUANCE OF EQUIPMENT TAX NOTES
THE STATE OF TEXAS
COUNTIES OF TARRANT DENTON AND WISE
CITY OF FORT WORTH
WHEREAS the City of Fort Worth Texas (the 'City") is a home-rule municipality
having a total population of at least 50 000 according to the last preceding federal
census and was organized created and established pursuant to the Constitution and
laws of the State of Texas and
WHEREAS the City Council is authorized pursuant to Chapter 1431 Texas
Government Code to issue anticipation notes for specified purposes including without
limitation to pay a contractual obligation incurred or to be incurred for the purchase of
materials supplies equipment, machinery buildings lands and rights-of-way for an
issuer's authorized needs and purposes and
WHEREAS Section 1431 003 Texas Government Code grants to the City
Council the ability to exercise the authority granted to the governing body of an issuer
with regard to the issuance of obligations under Chapter 1371 Texas Government
Code and
WHEREAS on September 28 1999 the City Council adopted an 'Ordinance
Authorizing Issuance of Equipment Tax Notes" in an aggregate principal amount not to
exceed $20 000 000 at any one time outstanding (the 1999 Ordinance') and
WHEREAS on March 19 2002 the City Council adopted an 'Ordinance
Amending an Ordinance Authorizing Issuance of Equipment Tax Notes" (the '2002
Ordinance') and
WHEREAS the 1999 Ordinance as amended by the 2002 Ordinance is herein
referred to as the 'Note Program Ordinance and
WHEREAS all defined terms as used in this Ordinance shall have the meaning
given said terms in the Note Program Ordinance and
WHEREAS there are currently $7 156 793 23 in principal amount of Notes
outstanding under the terms of the Note Program Ordinance and
WHEREAS the Note Program Ordinance provides that a Note issued under the
terms of the Note Program Ordinance must mature before the seventh anniversary of
the date the Attorney General of the State of Texas approved the Initial Notes issued
pursuant to the Note Program Ordinance and
WHEREAS Section 8 of the Note Program Ordinance provides that the City at any time
may adopt an ordinance to (i) extend the Maximum Maturity Date and (ii) increase the
Note Program Amount, provided that any such ordinance shall be submitted to the
Office of the Attorney General of Texas for the approval thereby unless no longer
required by law• and
WHEREAS the City Council deems it in the best interest of the City to amend
the Note Program Ordinance to extend the Maximum Maturity Date and to increase the
Note Program Amount from $20 000 000 to $40 000 000
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH TEXAS
Section 1 That the definition of Maximum Maturity Date is hereby amended to
mean the later of (i) the date that is the day before the seventh anniversary of the date
that the Attorney General of the State approves this Ordinance amending the Note
Program Ordinance or (ii) such date as is established pursuant to Section 8 of the Note
Program Ordinance
Section 2 That the Note Program Amount is hereby authorized to be increased
from $20 000 000 to $40 000 000 as permitted by Section 8 of the Note Program
Ordinance
Section 3 That in all other respects the Note Program Ordinance as amended
by this Ordinance remains effective
Section 4 That it is hereby officially found and determined that the meeting at
which this Ordinance was passed 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
Section 5 That this Ordinance shall be effective immediately from and after its
passage in accordance with the provisions of Section 1201 028 Texas Government
Code
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SIGNED AND SEALED THIS Dp4~Q,F NCH 2004
Mayor
City F rt Worth Texas
~',~;~ City ecretary
APP OVED AS TO FORM AND LEGALITY
City Attorney
(SEAL)
THE STATE OF TEXAS
COUNTIES OF TARRANT AND DENTON
CITY OF FORT WORTH
I Sylvia Glover Acting City Secretary of the City 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 City Council of the City of Fort Worth, Texas held
on March 30 2004 and' of Ordinance No ~ which was duly passed at said meeting
and that said copy is a true and correct copy of said excerptand the whole of said ordinance
Said meeting wasopento the public, and public notice ofthe time place and purpose ofsaid
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 City
of Fort Worth, this 30th day of March, 2004
Acti City Secretary of the
City of Fort Worth Texas
(SEAL)
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THE STATE OF TEXAS
COUNTIES OF TARRANTAND DENTON
CITY OF FORT WORTH
On the 30th day of March 2004 the City Council of the City of Fort Worth, Texas, met
in regular open, public meeting in the City Council Chamber in the City Hall with the following
members present, to-wit:
Mike Moncrief Mayor
Jim Lane
Chuck Silcox,
Becky Haskin
Frank Moss,
Clyde Picht, Councilmembers,
John Stevenson,
Ralph McCloud
Wendy Davis
Gary Jackson City Manager
David Yett, City Attorney
Sylvia Glover Acting City Secretary
Jim Keyes Director of Finance
thus constituting more than a quorum present; and after the City Council had transacted
certain business, the following business was transacted, to-wit:
Councilmember ~~~ introduced an ordinance and moved its passage The
motion was seconded by Councilmember,G~~~ao~ The Ordinance was-read by the Acting
City Secretary The motion carrying with it the passage ofthe ordinance prevailed by a vote
of `1YEAS ,QNAYS The ordinance as passed is as follows.
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 3/30/2004 Ordinance No 15933
DATE Tuesday March 30 2004
LOG NAME. 13EQUIPNOTES REFERENCE NO *C-20013
SUBJECT
Adopt Amendment to Ordinance No 13954 Authorizing the Issuance of Equipment Tax Notes
RECOMMENDATION
It is recommended that the City Council•
1 Adopt the attached ordinance amending Ordinance No 13954 to re-establish the maximum maturity of
the notes to be issued under the Equipment Note Program and to expand the authority from $20 000 000
to $40 000 000• and
2. Authorize the City Manager to establish financing agreements with Bank One Bank of America and/or
Frost Bank subject to negotiation of acceptable terms.
DISCUSSION
On September 28 1999 (M&C G-12681) the City Council adopted Ordinance No 13954 authorizing the
establishment of an Equipment Note Program by identifying the paying agent/registrarfnr these notes The
City Manager any Assistant City Manager and the Finance Director were authorized from time-to time to
sell notes secured by ad valorem taxes in a total amount not to exceed $20 000 000 for the purpose of
financing high-dollar long-lasting fire apparatus and any other lawful purpose including materials, supplies,
equipment, machinery buildings, lands and rights-of-way" as authorized under Chapter 1431 of the Texas
Government Code Ordinance No 13954 was submitted to the Public Finance Division of the Office of the
Attorney General and approved by that office as required by law
Under the terms of Ordinance No 13954 any notes issued must mature before the seventh anniversary of
the date the Attorney General of the State of Texas approved the initial notes. However Section 8 of
Ordinance No 13954 provides that the City at any time may adopt an ordinance to extend the maximum
maturity date subject to approval by the Attorney General The City Council previously amended Ordinance
No 13954 on March 19 2002 (M&C G-13594) to re-establish the maximum maturity Since the City issued
notes in 2002 and late in 2003 this means that the City may only issue notes in 2004 with afour-year
maximum maturity unless Ordinance No 13954 is amended to re-establish the maximum maturity of seven
years Staff in conjunction with the City's financial advisors recommends that the maximum maturity be
extended again to seven years to manage debt service needs more effectively
The Note Program has been utilized extensively to fund replacement of fire apparatus and Solid Waste
vehicles Over the years since inception of the program various departments have discussed using this
financing vehicle for other items ranging from a storm warning system to budget preparation software This
fiscal year IT Solutions asked Finance if there was a more economical way to acquire computer equipment
and high-dollar software rather than expensive vendor-financing. Staff researched the matter with the City's
financial advisors and bond counsel and recommends using the Note Program for computer equipment
and high-dollar software purchases as allowed by law For this reason staff recommends expanding the
authority from $20 000 000 to $40 000 000
Loename. 13EOUIPNOTES PauP. 1 of ~
The City currently has agreements with Bank One and Bank of America to finance annual note sales Both
institutions have expressed interest in the expanded program Frost Bank has also contacted staff with an
interest in the program Staff in conjunction with the City's financial advisors will review any proposals
from these banks and secure the most economical agreements for the program
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that funds will be available in the City's various operating budgets as
appropriated to make the required lease/purchase payments
TO Fund/Account/Centers
FROM Fund/Account/Centers
Submitted for City Manager's Office b~• Charles Boswell (8511)
Originating Department Head Jim Keyes (8517)
Additional Information Contact• Skipper Shook (8519)
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