HomeMy WebLinkAboutOrdinance 19114-04-2010Ordinance No 19114-04-2010
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE COMMERCIAL PAPER DEBT SERVICE FUND IN THE AMOUNT OF
$488,130 58 FROM AVAILABLE FUNDS FOR THE PAYMENT OF FEES TO LIQUIDITY
PROVIDER OF THE CITY'S WATER AND SEWER SYSTEM COMMERCIAL PAPER
NOTES PROVIDING FOR A SEVERABILITY CLAUSE, MAKING THIS ORDINANCE
CUMULATIVE OF PRIOR ORDINANCES REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS
SECTION 1
That in addition to those amounts allocated to the various City departments for Fiscal Year 2009-2010 in the
Budget of the City Manager there shall also be increased estimated receipts and appropriations in the
Commercial Paper Debt Service Fund by $488 130 58 from available funds, for the payment of fees to
liquidity provider of the City's Water and Sewer System Commercial Paper notes.
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, opinion or judgment shall in no way
impair 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 18809 and all other ordinances and appropriations
amending the same except in those instances where the provisions of this ordinance are in direct conflict
with such other ordinances and appropriations, in which instance said conflicting provisions of said prior
ordinances and appropriations are hereby expressly repealed
SECTION 4
This ordinance shall take effect upon adoption
A^P~ PROVED AS TO FORM AND LEGALITY
Assistant ity Attorney
ADOPTED AND EFFECTIVE. April 13, 2010
City of Fort Worth, Texas
Mayor and Council Communication
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COUNCIL ACTION: Approved on 4/13/2010 -Ord. No. 19113-04-2010 & 19114-04-201.0..
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DATE Tuesday April 13 2010
LOG NAME 1310WATERCP
REFERENCE NO C-24182
SUBJECT
Adopt an Ordinance Approving JP Morgan Chase as Liquidity Provider in Support of the City's Water and
Sewer System Commercial Paper Notes Adopt a Supplemental Appropriation Ordinance Increasing
Appropriations by $488 130 58 Approve the Execution of an Agreement with the Liquidity Provider and
Resolve Other Matters Incident and Related to the Issuance Sale Security and Delivery of Commercial
Paper Notes
RECOMMENDATION
It is recommended that fhe City Council
1 Adopt the attached ordinance approving JP Morgan Chase as liquidity provider in support of the City's
Water and Sewer System Commercial Paper Notes
2 Adopt the attached supplemental appropriation ordinance increasing appropriations in the Commercial
Paper Debt Service Fund by $488 130 58 from cash available for appropriation
3 Approve the execution of an Agreement with the liquidity provider and
4 Resolve other matters incident and related to the issuance, sale security and delivery of Commercial
Paper Notes
DISCUSSION
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 Agreement with the current liquidity provider for this program Bank of America expires on April 20
2010 Because of the current market, rates have increased significantly over what the City is currently
paying After comparing quoted rates the City's financial advisors and the City staff recommend retaining
JP Morgan Chase to provide the liquidity facility and act as the Issuing/Paying Agent, if required The fee
of 70 basis points equates to an annual cost of approximately $1 150 000 00 which is an increase of
$488 130 88 over existing fees for the remainder of Fiscal Year 2010
FISCAL INFORMATION /CERTIFICATION
The Financial Management Services Director certifies that upon approval of the above recommendations
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and the adoption of the attached ordinance and attached supplemental appropriation ordinance funds will
be available in the current debt service budget, as appropriated of the Commercial Paper Debt Service
Fund
FUND CENTERS
TO Fund/Account/Centers
FROM Fund/Account/Centers
PE52 553010 0132000 $488,130.58 PE52 553010 0132000
CERTIFICATIONS
Submitted for City Manager's Office by; Karen Montgomery (6222)
Originating Department Head.
Additional Information Contact:
Lena Ellis (8517)
James Mauldin (2438)
$488,130.58
Logname 1310WATERCP Page 2 of 2