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HomeMy WebLinkAboutOrdinance 14881An O rdfifnf awn ce NO / T ~v ORDINANCE AMENDING AN ORDINANCE AUTHORIZING ISSUANCE OF EQUIPMENT TAX NOTES THE STATE OF TEXAS COUNTIES OF TARRANT AND DENTON 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 February 9, 1999, the City Council adopted Ordinance No 13701 "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, all defined terms as used in this Ordinance shall have the meaning given said terms in the 1999 Ordinance, and WHEREAS, there are currently $3,706,309 53 in principal amount of Notes outstanding under the terms of the 1999 Ordinance, and WHEREAS, the 1999 Ordinance provides that a Note issued under the terms of the 1999 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 1999 Ordinance, and WHEREAS, Section 8 of the 1999 Ordinance provides that the City at any time may adopt an ordinance to extend the Maximum Maturity Date, 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; WHEREAS, the City Council deems it in the best interest of the City to amend the 1999 Ordinance to extend the Maximum Maturity Date 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 1999 Ordinance or (ii) such date as is established pursuant to Section 8 of the 1999 Ordinance Section 2 The Director of Finance is hereby authorized to submit this Ordinance and other relevant proceedings to the Public Finance Division of the Office of the Attorney General for the purpose of obtaining an opinion approving this Ordinance and the extension of the Maximum Maturity Date as herein provided Section 3 That the 1999 Ordinance, as amended by this Ordinance, remains effective in all other respects 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 take effect and be in full force and effect from and after the date of its passage, in accordance with the provisions of Section 2 of Chapter 25 of the Charter of the City, and it is accordingly so ordained SIGNED AND SE LED THIS /3~'L'DAY OF DECEMBER, 2001 u +4 -~.,, ~` .~~.~._ Mayor, R„4 ~R ~ ~ ,^ ~. ` '~''~~f '~` City of Fort Worth, Texas ~~ t t re ~'.~5 '~ '~ ~ ,~ tea, ~ ~; _ ! n ~ _ , _ City Secretar-yf,~.~r 'err (r~ ".: ,{ .~v ~Y:ftf.., 'a (SEAL) APPROVED AS TO FORM AND LEGALITY pity At rney City of Fort Worth, Texas ~1-~n~ar send ~',~runc~il L„a~rtn~un~cA~ian DATE REFERENCE NUMBER LOG NAME PAGE 12/11/01 **G-13453 13TAX-NOTES 1 of 1 SUBJECT ADOPT AMENDMENT TO ORDINANCE NO 13701 AUTHORIZING THE ISSUANCE OF EQUIPMENT TAX NOTES RECOMMENDATION It is recommended that the City Council adopt the attached ordinance amending Ordinance No 13701, which approved and authorized the Equipment Note Program, to re-establish the maximum maturity of the Notes to be issued DISCUSSION On February 9, 1999 (M&C G-12462), the City Council adopted Ordinance No 13701 authorizing the establishment of an Equipment Note Program to provide a vehicle for financing primarily the purchase of fire apparatus 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 Under the terms of the ordinance, 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 13701 provides that the City at any time may adopt an ordinance to extend the maximum maturity date, subject to approval by the Attorney General Since the City has issued notes in 2000 and 2001, this means that the City may only issue notes in 2002 with afive-year maximum maturity, unless Ordinance No 13701 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 to seven years to manage debt service needs more effectively FISCAL {NFORMATION/CERTIFICATION The Finance Director certifies that upon adoption of the attached ordinance, funds will be available in the General Debt Service Fund to make any debt service payments on equipment notes issued under terms of the ordinance. CB n Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) GD06 551010 0132000 APPROVED Charles Boswell 8511 GD06 552010 0132000 TY COU CI L Originating Department Head: N CI DEC 1 2001 1 Jim Keyes 8517 (from) }~ ~ i d i f C r~~ \ ~ ~"'~~ A dit onal In ormat on ontact: t:.,ay 5ecretar~ of the W lb Skipper Shook 8519 orth. xas City of i art 1rl~ntn~ ~CE~iEi2~1G~ ~0." ~;'.