HomeMy WebLinkAboutOrdinance 11258'~,
,'~ ORDINANCE N0.
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ORDINANCE AMENDING ORDINANCE NOS. 10418 AND
10905 WITH RESPECT TO THE CITY OF FORT WORTH,
TEXAS WATER AND SEWER SYSTEM SUBORDINATE LIEN
RE~7ENUE BONDS
WHEREAS, on October 17, 1989 and August 27, 1991, the City
Council of the City of Fort Worth (the "City") adopted Ordinance
Nos. 10418 and 10905, respectively (the "Ordinances") relating to
the issuance of the City's Water and Sewer System Subordinate Lien
Revenue Bonds (hereinafter called the "Subordinate Lien
Obligations"); and
WHEREAS, the Subordinate Lien Obligations were purchased by
the Texas Water Development Board (the "Board") pursuant to the
State Revolving Fund wastewater treatment worDcs construction
program; and
_WHEREAS, the Ordinances provide for the funding of a reserve
fund in support of such Bonds in an amount equal to one times the
average annual principal and interest requirements of the
Subordinate Lien Obligations (the "Required Reserve"); and
WHEREAS, on December 10, 1991, the City refunded and
restructured its outstanding Water and Sewer System Revenue Bonds
(the "First Lien Bonds"), which are superior in priority to the
Subordinate Lien Obligations; and
WHEREAS, in the ordinance adopted by the City Council in
connection with said refunding established a reserve fund
requirement for the City's First Lien Bonds of the greater of (i)
.50 times the average annual or (ii) .375 times the maximum annual
principal and interest requirements on the First Lien Bonds; and
WHEREAS, the City has requested that the Board agree to reduce
the Required Reserve on the Subordinate Lien Obligations to the
greater of (i) .50 times the average annual or (ii) .375 times the
maximum annual principal and interest requirements of the
Subordinate Lien Obligations; and
WHEREAS, none of the Subordinate Lien Obligations authorized
by Ordinance No. 10905 have been delivered to the Board; and
WHEREAS, the Board has agreed to restructure the payment of
principal and interest on such Subordinate Lien Obligations, as
hereinafter provided; and
WHEREAS, the Board has approved such changes, provided it is
set forth in an amendatory ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
Section 1. That the Ordinances are hereby amended to
revise the funding requirement of the Reserve Fund in support of
the Subordinate Lien Obligations to equal the greater of (i) .50
times the average annual or (ii) .375 times the maximum annual
principal and interest requirements of the Subordinate Lien
Obligations.
Section 2. That Sections 2 and 4 of Ordinance No. 10905
are .hereby amended to reflect the changes on the interest rates and
amortization of the Bonds therein authorized, all as set forth in
Exhibit A attached hereto. The designation of Lot A Bonds and Lot
B Bonds in Ordinance 10905 shall no longer be applicable.
Section 3. That this Ordinance shall be effective
immediately from and after 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 1.6th day of February, 1993.
M yor
ATTEST:
~~ ~~_ L~_~ ~~
City Secretary
APPR VED AS TO FORM D LEGALITY:
City Attorney
(SEAL)
-2-
EXHIBIT A
Maturity Interest Principal
Dates Rate Amount
March 1, 1994 1.700$ $ 455,000
March 1, 1995 2.450$ 500,000
March 1, 1996 2.900 500,000
March 1, 1997 3.200$ 600,000
March 1, 1998 3.400$ 600,000
March 1, 1999 3.600 600,000
March 1, 2000 3..800$ 700,000
March 1, 2001 3.950$ 700,000
March 1, 2002 4.050$ 800,000
March 1, 2003 4.150$ 800,000
March 1, 2004 4.300$ 900,000
March 1, 2005 4.400$ 900,000
March 1, 2006 4.500$ 1,000,000
March 1, 2007 4.600$ 1,000,000
March 1, 2008 4.700$ 1,100,000
March 1, 2009 4.700 1,200,000
March 1, 2010 4.800$ 1,200,000
March 1, 2011 4.800$ 1,300,000
March 1, 2012 4.850$ 1,300,000
-3-
THE STATE OF TEXAS .
COUNTIES OF TARRANT AND DENTON
CITY OF FORT WORTH .
I, Alice Church, City Secretary of the City of Fort Worth, in
the State of Texas, do hereby certify that I have compared the
attached and foregoing excerpt from the minutes
of the regular, open, public meeting of the City Council of
the City of Fort Worth, Texas held on February 16, 1993, and of
Ordinance No. ./r sp
which was duly passed at said meeting, and that said copy is
a true and correct copy of said excerpt and the whole of
said ordinance.
In testimony whereof, I have set my hand and have hereunto
affixed the seal of said City of Fort Worth, this 16th day of
February, 1993.
G~~
City Secretary of the
City of Fort Worth, Texas
(SEAL)
• , ,~.-;
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City of Fart Worth, Texas
Mayor and Coun~~il Communication
02/16/93 -------- ---••--••G-10053 ~......,,~~~~ ~„u~
13SEWER 1 of 2
SUBJECT AMENDMENT OF ORDINANCE NO'S. 10418 AND 10905 WITH RESPECT TO THE CITY OF FORT
WORTH TEXAS WATER AND SEWER SYSTEM SUBORDINATE LIEN. REVENUE BONDS
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance:
1. To amend Ordinance No's. 10418 and 10905 to revise the funding requirement of the
Reserve Fund supporting the City's Subordinate Lien Obligations, and
2. To amend Ordinance No. 10905 to lower the interest rates, reflecting the
improvement in the general bond market since the ordinance was adopted in August
1991.
DISCUSSION:
In 1991, the City refunded its outstanding First Lien Water and Sewer Revenue Bonds,
and in doing so, substantially revised the bond ordinance provisions governing
bondholder security. Specifically, the provision dealing with the accumulation of a
Required Reserve Fund for the First Lien Bonds was altered to reflect a funding level
equal to the greater of (i ) 0.50 times the average annual or (i i ) 0.375 times the
maximum annual principal and interest requirements of the First Lien Bonds. The
objective of this change was to provide the City with greater flexibility in the
planning of future bond issues.
The Texas Water Development Board currently holds the City's $33,300,000.00 Water and
Sewer System Subordinate Lien Revenue Bonds, Series 1989 (Ordinance No. 10418), and has
commitments to purchase the City's $16,155,000.00 Water and Sewer System Subordinate
Lien Revenue Bonds, Series 1991 (Ordinance No. 10905), and its $19,900,000.00 Water and
Sewer System Subordinate Lien Revenue Bonds, Series 1992 (Ordinance No. 11154). The
1989 and the 1991 bond issues currently require a reserve fund equal to average annual
debt service requirements. This amendment of Ordinance No's. 10418 and 10905 will
bring the reserve fund provisions of the Subordinate Lien Bond Ordinances in line with
the provisions of the First Lien Bond Ordinances.
The Texas Water Development Board approved this change at its January 21, 1993 meeting.
This ordinance further amends Ordinance No. 10905 to lower the interest rate on the
issue to reflect the general improvement in the bond market since the ordinance was
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City of Fort Worth, Texas
Mayor and Council Communication
DATE
02/16/93 REFEREN E NUMBER
G-10053 LOG NAME
13SEWER PAGE
2 of 2
SUBJECT AMENDMENT OF ORDINANCE NO'S. 10418 AND 10905 WITH RESPECT TO
WORTH TEXAS WATER AND SEWER SYSTEM SUBORDINATE LIEN REVENUE THE CITY OF FORT
BONDS
adopted on August 27, 1991. When originally adopted, the ordinance stated the bonds
would bear interest at the rate of 5.50% per year. Under the amended schedule proposed
by the Texas Water Development Commission, the total interest cost on the Series 1991
bonds should be approximately 4.60%.
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Su fitted for C ty Manager's FUND ACCOUNT CENTER AMOUNT C
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Charles Boswell 8500 ~~B if
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Charles Boswell 8500 from ~ik9~^re4arg®[th~
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For Additional Information
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Jim Keyes 8517
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