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HomeMy WebLinkAboutOrdinance 19121-04-2010Ordinance No 19121-04-2010 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE WATER AND SEWER REVENUE DEBT SERVICE FUND IN THE AMOUNT OF $2,515,000 00 AND DECREASING THE UNAUDITED UNRESERVED UNDESIGNATED FUND BALANCE BY THE SAME AMOUNT FOR THE DEFEASANCE OF ALL OUTSTANDING MATURITIES OF THE CITY OF FORT WORTH, TEXAS WATER AND SEWER SYSTEM REVENUE BONDS SERIES 2000• 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 Water and Sewer Revenue Debt Service Fund in the amount of $2,515 000 00 and decreasing the unaudited, unreserved undesignated fund balance by the same amount for the defeasance of all outstanding maturities of the City of Fort Worth, Texas, Water and Sewer System Revenue Bonds, Series 2000 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed SECTION 4 This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY ~ ~-(-GAS Assistant ity Attorney ADOPTED AND EFFECTIVE. April 20, 2010 RESOLUTION NO 3877-04-2010 & ORDINANCE NO 19121-04-2010 NOTICE OF REDEMPTION CITY OF FORT WORTH, TEXAS Notice is hereby given that the following obligations issued by the City of Fort Worth, Texas (the 'City") are called for redemption prior to their scheduled maturities on the dates and at the redemption price of par plus accrued interest to the redemption date: CITY OF FORT WORTH, TEXAS WATER AND SEWER SYSTEM REVENUE BONDS, SERIES 2000 all obligations maturing on February 15 in each of the years 2011 and 2012, aggregating $2,515,000 in principal amount; REDEMPTION DATE. June 15, 2010. Maturity Date Principal Amount Interest Rate CUSIP 02/15/2011 $1,220 000 5 00% 3495145F2 02/15/2012 $1,295 000 5 00% 349514560 Due provision for the payment of the above-described obligations has been made with Wells Fargo Bank, N.A. ("Wells Fargo'), the paying agent for said obligations, and said obligations shall be presented for payment either in person or by mail, at the following addresses: First Class/Registered/Certified Wells Fargo Bank, N.A. Corporate Trust Operations MAC N9303-121 P O Box 1517 Minneapolis, MN 55480 Express Deliverv Onlv Wells Fargo Bank, N.A. Corporate Trust Operations 12th Floor MAC N9303-121 6th and Marquette Avenue Minneapolis, MN By Hand Only Northstar East Building Corporate Trust Operations 608 2nd Avenue South Minneapolis, MN Interest on the redeemed obligations shall cease to accrue thereon after the redemption date. CUSIP numbers have been assigned to this issue by the CUSIP Service Bureau and are included solely for the convenience of the Bondholder Neither the City nor Wells Fargo shall be responsible for the selection or correctness of the CUSIP numbers on the obligations or as indicated in any redemption notice. IMPORTANT NOTICE. Under the provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the Act"), paying agents making payments of interest or principal on municipal securities may be obligated to withhold a 28% tax from remittance to individuals who have failed to furnish the paying agent with a valid taxpayer identification number Owners of the Bonds who wish to avoid the imposition of the tax should submit certified taxpayer identification numbers when presenting the Bonds for payment. THIS NOTICE is given under authority of a resolution adopted by the City Council of the City on Apri120 2010 City of Fort Worth, Texas Mayor and Council Communication _-- ~_ .._ COUNCIL ACTION: Approved on 4/20/2010 -Res. No. 3877-04-2010 8~ Ord. No. 19121-04- 2010 DATE Tuesday April 20 2010 REFERENCE NO G-16903 LOG NAME 1310 WATER DEFEASANCE SUBJECT Adopt a Resolution Authorizing the Cash Defeasance of All Outstanding Maturities of the City of Fort Worth Texas Water and Sewer System Revenue Bonds Series 2000 from Unreserved Undesignated Fund Balance in the Water and Sewer Revenue Debt Service Fund in the Principal Amount of $2 515 000 00 and Adopt Supplemental Appropriation Ordinance RECOMMENDATION It is recommended that the City Council 1 Adopt the attached supplemental appropriation ordinance increasing appropriations in the Water and Sewer Revenue Debt Service Fund in the amount of $2 515 000 00 and decreasing unaudited unreserved undesignated fund balance by the same amount; and 2 Adopt the attached resolution authorizing the cash defeasance of all outstanding maturities of the City of Fort Worth Texas, Water and Sewer System Revenue Bonds Series 2000 DISCUSSION On July 18 2000 the City Council authorized the issuance and sale of $25 000 000 00 to the City of Fort Worth Texas, Water and Sewer System Revenue Bonds Series 2000 (M&C G-12962) After years of debt service and a portion of the issue being refunded $2 515 000 00 of principal remains Staff recommends utilizing available Water and Sewer Revenue Debt Service Fund balance to defease the remaining outstanding debt. In addition to reducing the Water Department's debt load defeasing this debt utilizing cash balances would result in savings of approximately $100 000 00 FISCAL INFORMATION /CERTIFICATION The Financial Management Services Director certifies that upon approval of the above recommendations and the adoption of the attached resolution and supplemental appropriation ordinance funds will be available in the current operating budget, as appropriated of the Water and Sewer Revenue Debt Service Fund FUND CENTERS TO Fund/Account/Centers FROM Fund/Account/Centers 1) PE47 551010 0132000 $2,515,000.00 2) PE47 551010 0132000 $2,515,000.00 CERTIFICATIONS Logname• 1310 WATER DEFEASANCE Page 1 of 2 Submitted for City Manager's Office b~ Karen Montgomery (6222) Originating Department Head. Lena Ellis (8517) Additional Information Contact: James Mauldin (2438) Logname. 1310 WATER DEFEASANCE Page 2 of 2