PILLAR: Fiscally Sound
AGENDA DATE: October 14, 2026
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller’s Office
PRIORITY: N/A
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SUBJECT
Title
An ordinance authorizing and establishing the City of Dallas, Texas, General Obligation Extendable Commercial Paper Program, Series A; under which will be issued from time to time short term obligations in an aggregate principal amount not to exceed $350,000,000 at any one time outstanding; making certain covenants and agreements in connection therewith; resolving other matters incident and related to the issuance, sale, and delivery of and security for Extendable Commercial Paper Notes issued under such program; approving an Offering Memorandum and its use by the Dealers; and resolving other matters related thereto – Not to exceed $855,000 – Financing: Debt Service Fund (subject to annual appropriations)
Body
BACKGROUND
The City utilizes commercial paper to award contracts, in accordance with the City Charter, Section 9 and Section 10, and to provide interim financing for capital projects. Commercial Paper allows for more cost-efficient uses of capital as short-term debt is issued to closely match the amount and timing of the award of capital project contracts, which is then periodically reduced by refinancing it with long-term debt. In alignment with the FY 2026-27 Adopted Budget and general obligation capital improvement plan, the City is seeking to establish an Extendable Commercial Paper Program to provide a source of appropriation authority and capital at a low cost to the City, replacing the existing program expiring in November 2026. Traditionally, the City’s commercial paper programs are supported by letters of credit from highly rated liquidity providers and assessed hefty fees. Extendable Commercial Paper is supported by the City’s own credit rating and does not require a letter of credit from a bank which lowers the overall cost of the p...
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