HomeMy WebLinkAboutOrdinance 12738ORDINANCE NO. /~~
AN ORDINANCE relating to the issuance of short term obligations,
and ordaining other matters related thereto
THE STATE OF TEXAS
COUNTIES OF TARRANT AND DENTON
CITY OF FORT WORTH
WHEREAS, the City of Fort Worth, Texas (the "City" or the "Issuer")
heretofore passed on March 8, 1990, Ordinance No 10538, as amended by
Ordinance No 11979, heretofore passed on June 6, 1995 (collectively, the "Note
Ordinance") ,which authorized the establishment of a short term obligation program
to provide interim financing for additions, improvements and extensions to the City's
combined water and sewer system, and
WHEREAS, currently there are no Notes outstanding under the terms of the
Note Ordinance, and
WHEREAS, the City has received the advice of bond counsel that it is
desirable to clarify the definition of "Prior Lien Bonds" in the Note Ordinance in the
manner hereinafter provided, and
WHEREAS, the City Council deems it necessary and. advisable to adopt this
Ordinance to clarify the meaning of the defined term "Prior Lien Bonds", now,
therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS
Section 1 That the definition of "Prior Lien Bonds" is hereby amended to
read as follows "Prior Lien Bonds" shall mean collectively the Outstanding Prior
Lien Bonds and any bonds or other obligations issued on a parity herewith
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Section 2 That this Ordinance shall be effective immediately from and after
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
ADOPTED this ~a~day of ~~t~~-i', 1996
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Mayor
ATTEST
City Secretary
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APPROVED AS TO FORM AND LEGALITY ~ ~ <(SEAL)
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APPROVED
CITY COi~NCIL
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City of Fort Worth, Texas
Mayor and Council Communication
DATE RSFSRSNCS NIIMSSR LOG NAMS PAGE
10/22/96 **G-11648 131SSU 1 of 1
SUBJSCT ORDINANCE RELATING TO THE ISSUANCE OF SHORT TERM OBLIGATIONS
RECOMMENDATION
It is recommended that the City Council adopt the attached ordinance amending the definition
of "Prior Lien Bonds" for the City's short-term obligation (i a commercial paper) program
DISCUSSION
The Public Finance Division of the Attorney General's office has requested a change be made so
as to avoid potential confusion in the future regarding the City's short-term obligations that may
be treated as Prior Lien Bonds (i a outstanding Water and Sewer Revenue Bonds from Series
1991 A, 1991 B, 1993 and 1996) relative to the pledge of System revenues The City's bond
counsel, McCall, Parkhurst & Horton, has interpreted "bonds" to mean "bonds" as defined in the
Bond Procedures Act (Article 717k-6, Texas Revised Civil Statutes) which includes bonds, notes,
"and other obligations authorized to be issued by any issuer, by any statute, city home-rule
charter, or the Texas Constitution " In the Second Amended and Restated Credit Agreement
securing the payment of the Water and Sewer System Commercial Paper Notes, the City included
the interest rate swap payment obligations as a "Prior Lien Bond" Therefore, bond counsel is
of the opinion that the proposed amendment of the commercial paper ordinance to include within
the definition of "Prior Lien Bond" the phrase "or other obligations" would clarify the definition
as it is currently drafted and would more clearly express the intent of the commercial paper
ordinance
McCall, Parkhurst & Horton, bond counsel for the City, has recommended this amendment
FISCAL INFORMATION/CERTIFICATION
The Director of Fiscal Services certifies that this ordinance will have no material effect on City
funds
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Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to) APPRQ
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Charles Boswell 8511 ~/' ~1 Vf~
Originating Department Head: ~^~ j~- 8
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Jim Keyes 8517 (from) /J_ . ~
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For Additional Information Y 1'Ort ~~ ~`@16ad
Contact:
Jim Keyes 8517
Printed on Recycled Paper Adopted Ordinance Nde -~e7';/tar-~~