STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: August 14, 2024
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller's Office
EXECUTIVE: Jack Ireland
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SUBJECT
Title
A resolution authorizing the execution of the Financing Agreement and related documents for the funding commitment from the Texas Water Development Board for Project Loan LM241535; and all other matters related thereto - Financing: This action has no cost consideration to the City (see Fiscal Information)
Body
BACKGROUND
On April 27, 2022, the City Council authorized the City Manager and the Director of Dallas Water Utilities (DWU) to submit loan applications to the Texas Water Development Board (TWDB) for low-cost financial assistance via the State Water Implementation Revenue Fund for Texas (SWIRFT) for planning, design, and construction of projects and programs on the prioritization list. Financial assistance applications for the approved prioritization projects were submitted by DWU in May 2022, to include two eligible projects representing $80.8 million in planned capital improvements and one multi-year commitment with TWDB of $170 million to fund DWU's water main replacement program for five years for a total funding commitment of $250.8 million.
In accordance with the SWIRFT funding commitment, DWU will issue $34.0 million in Waterworks and Sewer System Revenue Bonds, Series 2024C (the "Series 2024C Bonds") for Project Loan LM241535 that will be purchased by the TWDB. Through the purchase of our bonds, the TWDB will in turn provide the City with interest rates based on the cost of funds, which reflects the program's AAA credit rating wherein the interest rate is further reduced by a subsidy established by TWDB for each funding cycle. This will result in an average debt service payment reduction over the life of the loans when compared to a public offering.
This item represents the third-y...
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