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HomeMy WebLinkAboutOrdinance 11527` ~ *i //~~ ORDINANCE AMENDING ORDINANCE NO 11154 WITH RESPECT TO THE ISSUANCE OF CITY OF FORT WORTH, TEXAS WATER AND SEWER SYSTEM SUBORDINATE LIEN REVENUE BONDS, SERIES 1992 WHEREAS, the City Council of the City of Fort Worth, on August 25, 1992, adopted Ordinance No. 11154, which authorized the sale of $19,900,000 City of Fort Worth, Texas Water and Sewer System Subordinate Lien Revenue Bonds, Series 1992 (the "Bonds"); and WHEREAS, under the terms of said Ordinance the sale of the Bonds was awarded to the Texas Water Development Board ("TWDB"), for delivery in installments, and WHEREAS, none of the Bonds have been delivered to TWDB, pending the initial construction of the improvements to be financed with the proceeds of the Bonds, and WHEREAS, the Water Department has determined that the improvements to be financed can be financed for less than the $19,900,000 originally approved by the City Council, and WHEREAS, as a result of such determination by the Water Department, the City has requested, and the TWDB has agreed, to purchase $12,000,000 of the Bonds heretofore authorized, on amended terms as hereinafter set forth, and WHEREAS, the City Council deems it necessary and desirable to adopt this Ordinance. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS SECTION 1. That Section 1 of Ordinance No. 11154 is hereby amended by changing "$19,900,000" to "$12,000,000" SECTION 2. That Section 2 of Ordinance No. 11154 is hereby amended to revise the maturity schedule therein set forth, which revised maturity schedule shall read as follows MATURITY DATE. MARCH 1 AGGREGATE PRINCIPAL YEARS AMOUNTS 1995 $600,000 1996 600,000 1997 600,000 1998 600,000 1999 600,000 2000 600,000 2001 600,000 2002 600,000 2003 600,000 2004 600,000 2005 600,000 2006 600,000 2007 600,000 2008 600,000 2009 600,000 2010 600,000 2011 600,000 2012 600,000 2013 600,000 2014 600,000 SECTION 3 That Section 4 of Ordinance No. 11154 is hereby amended to read as follows. "Section 4. INTEREST. That the Obligations shall bear interest at the following rates per annum. maturities 1995, 2.25% maturities 1996, 2.90% maturities 1997, 3 15% maturities 1998, 3 40% maturities 1999, 3.55% maturities 2000, 3 70% maturities 2001, 3.85% maturities 2002, 3.95% maturities 2003, 4.05% maturities 2004, 415% maturities 2005, 4.25% maturities 2006, 4.35% maturities 2007, 4 45% maturities 2008, 4.50% maturities 2009, 4.SS% maturities 2010, 4.60% maturities 2011, 4.65% maturities 2012, 4.65% maturities 2013, 4 70% maturities 2014, 4 70% 2 F g Said interest shall be payable to the registered owner of any such Obligation in the manner provided and on the dates stated in the FORM OF BOND set forth in this Ordinance. SECTION 4 That all references in Ordinance No. 11154 to "Ameritrust Texas National Association" as the "Paying Agent/Registrar" for the Bonds shall be deemed to be in reference to "Texas Commerce Bank National Association", as Texas Commerce Bank National Association has succeeded to all rights, duties and obligations of the former Ameritrust Texas National Association. SECTION 5 That the FORM OF BOND set forth in Section 6 of Ordinance No. 11154 is hereby amended to read as follows. 3 FORM OF BOND: NO UNITED STATES OF AMERICA STATE OF TEXAS COUNTIES OF TARRANT AND DENTON CITY OF FORT WORTH, TEXAS WATER AND SEWER SYSTEM SUBORDINATE LIEN REVENUE BOND SERIES 1992 MATURITY DATE INTEREST RATE DATE OF DELIVERY CUSIP ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF FORT WORTH, TEXAS (the "Issuer"), hereby promises to pay to or to the registered assignee hereof (either being hereinafter called the "registered owner") the principal amount of and to pay interest thereon, from the date of delivery of this Bond specified above, to the date of its scheduled maturity or the date of its redemption prior to scheduled maturity, at the rate of interest per annum specified above, with said interest being payable on September 1, 1994, and semiannually on each March 1 and September 1 thereafter, except that if the Paying Agent/Registrar's Authentication Certificate appearing on the face of this Bond is dated later than September 1, 1994, such interest is payable semiannually on each March 1 and September 1 following such date. THE TERMS AND PROVISIONS of this Bond are continued on the reverse side hereof and shall for all purposes have the same effect as though fully set forth at this place. 4 *THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity, at the corporate trust office of Texas Commerce Bank National Association, Austin, Texas, which is the "Paying Agent/Registrar" for this Bond. The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof as shown by the Registration Books kept by the Paying Agent/Registrar at the close of business on the 15th day of the month next preceding such interest payment date by check drawn by the Paying Agent/Registrar on, and payable solely from, funds of the Issuer required to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided, and such check shall be sent by the Paying Agent/ Registrar by United States mail, postage prepaid, on each such interest payment date, to the registered owner hereof at its address as it appears on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. The Issuer covenants with the registered owner of this Bond that no later than each principal payment date and interest payment date for this Bond it will make available to the Paying Agent/Registrar the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Bonds, when due. *IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, S Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. *THIS BOND is one of a series of bonds, dated September 1, 1992, of like tenor and effect except as to number, principal amount, interest rate, maturity and right of prior redemption, aggregating Twelve Million Dollars ($12,000,000) (herein sometimes called the "Bonds"), issued for the purpose of extending and improving the Issuer's combined water and sewer system, to-wit: extending and improving the Village Creek Wastewater Treatment Plant; and other improvements to the sewer system. *THE OUTSTANDING BONDS of this Series may be redeemed prior to their scheduled maturities, at the option of the Issuer, in whole, or in part, and if in part, in inverse order of maturity, on March 1, 2000, or on any date thereafter, for the principal amount thereof and accrued interest thereon to the date fixed for redemption, and without premium. *AT LEAST 30 days prior to the date fixed for any such redemption a written notice of such redemption shall be given to the registered owner of each Bond or a portion thereof being called for redemption by depositing such notice in the United States mail, postage prepaid, addressed to each such registered owner at his address shown on the Registration Books of the Paying Agent/Registrar By the date fixed for any such redemption due pro- vision shall be made by the Issuer with the Paying Agent/Registrar for the payment of the required redemption price for this Bond or the portion hereof which is to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If such written notice of 6 redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion hereof which is to be so redeemed, thereby automatically shall be redeemed prior to its scheduled maturity, and shall not bear interest after the date fixed for its redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price plus accrued interest to the date fixed for redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Books all such redemptions of principal of this Bond or any portion hereof. If a portion of any Bond shall be redeemed a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the Issuer, all as provided in the ordinance authorizing the Bonds (the "Ordinance"). *ALL BONDS OF THIS SERIES are issuable solely as fully registered bonds, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Ordinance, this Bond, or any unredeemed portion hereof, may, at the request of the registered owner or the assignee or assignees hereof, be assigned, transferred, and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the case may be, having the same maturity date, and bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000 as requested in writing by 7 the appropriate registered owner, assignee, or assignees, as the case maybe, upon surrender of this Bond to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Ordinance. Among other requirements for such assignment and transfer, this Bond must be presented and surrendered to the Paying Agent/Registrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment of this Bond or any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be transferred and registered. The form of Assignment printed or endorsed on this Bond may be executed by the registered owner to evidence the assignment hereof, but such method is not exclusive, and other instruments of assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or any portion or portions hereof from time to time by the registered owner The one requesting such exchange shall pay the Paying Agent/Registrar's reasonable standard or customary fees and charges for exchanging any Bond or portion thereof. The foregoing notwithstanding, in the case of the exchange of a portion of a Bond which has been redeemed prior to maturity, as provided herein, and in the case of the exchange of an assigned and transferred Bond or Bonds or any portion or portions thereof, such fees and charges of the Paying Agent/Registrar will be paid by the Issuer In any circumstance, any taxes or governmental charges required to be paid with respect thereto shall be paid by the one requesting such assignment, transfer, or exchange as a condition precedent to the exercise of such privilege. In any circumstance, neither the Issuer nor the Paying Agent/Registrar shall be required (1) to make any transfer or exchange 8 during a period beginning at the opening of business 30 days before the day of the first mailing of a notice of redemption of bonds and ending at the close of business on the day of such mailing, or (2) to transfer or exchange any Bonds so selected for redemption when such redemption is scheduled to occur within 30 calendar days. *IN THE EVENT any Paying Agent/Registrarfnr the Bonds is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, whose qualifications substantially are similar to the previous Paying Agent/Registrar it is replacing, and promptly will cause written notice thereof to be mailed to the registered owners of the Bonds. *BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Ordinance is duly recorded and available for inspection in the official minutes and records of the Issuer, and agrees that the terms and provisions of this Bond and the Ordinance constitute a contract between each registered owner hereof and the Issuer *THE ISSUER has reserved the right, subject to the restrictions stated, and adopted by reference, in the Ordinance, to issue (1) Prior Lien Obligations (as defined in the Ordinance) secured by a lien on and pledge of the Pledged Revenues (as defined in the Ordinance) superior to such lien and pledge securing the Bonds, and (2) additional parity revenue bonds which also may be made payable from, and secured by a lien on and pledge of, the Pledged Revenues securing the Bonds. 9 *THE REGISTERED OWNER HEREOF shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation, or from any source whatsoever other than the aforesaid Pledged Revenues. IT IS HEREBY certified and covenanted that this Bond has been duly and validly authorized, issued and delivered, that all acts, conditions and things required or proper to be performed, exist and be done precedent to or in the authorization, issuance and delivery of this Bond have been performed, existed and been done in accordance with iaw; that this Bond is a special obligation, and that the principal of and interest on this Bond, together with other bonds of the Issuer now or hereafter outstanding on a parity therewith, are payable from, and secured by a lien on and pledge of, the Pledged Revenues (as defined in the Ordinance), and which include the Net Revenues of the Issuer's combined Water and Sewer System, however, the lien on and pledge of the Pledged Revenues shall be junior and subordinate to the Prior Lien Obligations (as defined in the Ordinance), which consist of the Prior Lien Bonds (as defined in the Ordinance) and any System Obligations (as defined in the Ordinance). IN WITNESS WHEREOF, this Bond has been signed with the imprinted or lithographed facsimile signature of the Mayor of said City, attested by the imprinted or lithographed facsimile signature of the City Secretary, and approved as to form and legality by the imprinted or lithographed facsimile signature of the City Attorney, 10 ~ ~ ,l and the official seal of said City has been duly affixed to, printed, lithographed or impressed on this Bond. CITY OF FORT WORTH, TEXAS ayor h.~ a ~N( ATTEST 1~~,[.u/ City Secretary (SEAL) APPROVED AS TO FORM AND LEGALITY. City Attorney 11 FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Ordinance described on the face of this Bond; and that this Bond has been issued in exchange for or replacement of a bond, bonds,. or a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. Dated Paying Agent/Registrar By Authorized Representative 12 FORM OF ASSIGNMENT. ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto Please insert Social Security or Taxpayer Identification Number of Transferee / ~ (Please print or typewrite name and address, including zip code of Transferee) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to register the transfer of the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated. Signature Guaranteed. NOTICE. Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company NOTICE. The signature above must correspond with the name of the Registered Owner as it appears upon the front of this Bond in every particular, without alteration or enlarge- ment or any change whatsoever 13 * * (FORM OF COMPTROLLER'S CERTIFICATE ATTACHED TO THE BONDS UPON INITIAL DELIVERY THEREOF) OFFICE OF COMPTROLLER STATE OF TEXAS REGISTER NO I hereby certify that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this Bond has been examined by him as required by law, and that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas, and that it is a valid and binding special obligation of the City of Fort Worth, Texas, payable in the manner provided by and in the ordinance authorizing same, and said Bond has this day been registered by me. WITNESS MY HAND and seal of office at Austin, Texas (SEAL) NOTE TO PRINTER. *¶s to be on reverse side of bond *'"11 not to be on bond Comptroller of Public Accounts of the State of Texas SECTION 6. That Section 27 of Ordinance No. 11154 is hereby amended to read as follows. "Section 27 SALE. (a) The Obligations are hereby sold to TWDB for the price of par The Obligations may be delivered to TWDB in accordance with the schedule set forth in Section 2 of this Ordinance, and paid for in whole, or in installments at such times as shall be approved by the City Manager, provided none of the Obligations shall be so delivered 14 without the City's receiving full payment therefor The Obligations initially delivered shall be registered in the name of the Texas Water Development Board. (b) The City hereby authorizes the City Manager to approve the form and content of an Offering Memorandum to be filed with the TWDB, such Offering Memorandum to fully describe the Obligations, the security therefor and the financial condition of the City (c) The Paying Agent/Registrar shall complete the "Date of Delivery" on each Obligation delivered to TWDB as provided in Section 5(e) of this Ordinance, and interest on the Obligations so delivered shall commence from such date. (d) It is the intent of the parties to the sale of the Obligations that if TWDB ever determines to sell all or a part of the Obligations, it shall notify the City at least 6Q days prior to the sale of the Obligations of the decision to so sell the Obligations. (e) To the extent that the provisions of this Ordinance are inconsistent or conflict with the provisions of the ordinances authorizing the Previously Issued Subordinate Lien Obligations, the provisions of this Ordinance shall control, and by issuing its commitment to purchase the Obligations, TWDB shall be deemed to have consented to the applicability of such provisions set forth in this Ordinance to the Subordinate Lien Obligations." SECTION 7 That except as amended by this Ordinance, Ordinance No. 11154 remains in full force and effect. SECTION 8. 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. 15 _. ADOPTED THIS 29th day of March, 1994 ~d~ Mayor ~~, p T~ ~F `~ri ATTEST City Secretary APPROVED AS TO FORM AND LEGALITY City Attorney "'~ [v ~r ~~ n /_° r ~ ^~ ; ~ ~ ..'t. 16 n ~, " r d (~~, City of Fort Worth, Texas Mayor and Council Communication NUMBER PAC3E 03/29/94 I **G1O6O1 I 13LIEN I 1 of 2 SUBJECT ORDINANCE AMENDING ORDINANCE NO 1 1 154 WITH RESPECT TO THE ISSUANCE OF CITY OF FORT WORTH, TEXAS WATER AND SEWER SYSTEM SUBORDINATE L1EN REVENUE BONDS, SERIES 1992 RECOMMENDATION It is recommended that the City Council adopt the ordinance amending Ordinance No 1 1 154 to 1 Reduce the amount of the third State Revolving Loan Fund loan from 519,900,000 to 512,000,000, and 2 Reduce the average annual rate on the loan from 4 735% to 4 365% DISCUSSION Ordinance No 11154, adopted August 25, 1992, authorized the sale of 519,900,00 of subordinate lien revenue bonds to the Texas Water Development Board to extend and improve the Village Creek Wastewater Treatment Plant and to make other improvements to the sewer system Based on a review of the capital expenditure needs for the Village Creek Wastewater Treatment Plant through December 1994, the Water Department requested the Texas Water Development. Board reduce the loan amount from 519,900,000 to 512,000,000 This reduction in the loan amount provides two benefits for the City 1 It enables the City to match a loan request with a specific project, which facilitates accounting procedures 2 It reduces the potential for arbitrage restrictions For this loan .and all future loans, the Texas Water Development Board will deliver all of the proceeds up front at closing, rather than reimbursing the City for its actual expenditures over several months The amended amount of the loan request coincides with the cash requirements projected for the remainder of the c-alendar year In addition, the reduction in the interest rates will save approximately 5450,000 over the life of the issue ,,. , ,~ .i i=~ Printed on recycled paper City of Fort Worth, Texas Mayor and Council Communication e t DATE 03/29/94 REFERENCE NUMBER **G10601 LOG NAME 13LIEN PAGE 2}of 2 SUBJECT ORDINANCE AMENDING ORDINANCE NO 1 1 154 WITH RESPECT TO THE ISSUANCE OF CITY OF FORT WORTH, TEXAS WATER AND SEWER SYSTEM SUBORDINATE LIEN REVENUE BONDS, SERIES 1992 FISCAL INFORMATION/CERTIFICATION The Director of Fiscal Services certifies the funds will be available for project expenditures upon receipt CB r Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) APPROVED Charles Boswell 8500 ^~~~ ~~~~~~ Originating Department Head: ~ ~/ MAR 29 1994 Charles Boswell 8500 (from) ,! ~ .sir ~. a:w,~siAi^~ For Additional Information . ~ ~t'f. ~ ~ Contact: ~T ~~ WOiQL T®otns James Keyes $$17 ~ ~' •-«~ Printed an recycled paper