STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: December 11, 2024
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller’s Office
EXECUTIVE: Jack Ireland
______________________________________________________________________
SUBJECT
Title
An ordinance authorizing (1) the issuance and sale of City of Dallas, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2025A in an aggregate principal amount not to exceed $40,000,000; (2) levying a tax in payment thereof; (3) prescribing the form of said certificates; (4) approving and awarding the sale of the certificates and approving execution of a purchase agreement; (5) approving the official statement; and (6) enacting provisions incident and relating to the subject - Not to exceed $288,000 - Financing: 2025A Certificates of Obligation Fund
Body
BACKGROUND
On October 8, 2024, the City Council authorized the preparations of plans and the payment of future costs and expenses for the issuance of Combination Tax and Revenue Certificates of Obligation, Series 2025A (the “Series 2025A Certificates”), in a total amount not to exceed $40,000,000.00 to finance stormwater capital projects, pursuant to the authority granted by Subchapter C of Chapter 271, Texas Local Government Code (the “Certificate of Obligation Act of 1971”). Further, on October 8, 2024, the City Council authorized the publication of Notice of Intent to issue the Series 2025A Certificates.
As such, the City’s co-financial advisors, Hilltop Securities, Inc. and Estrada Hinojosa & Co., recommend the issuance of Combination Tax and Revenue Certificates of Obligation, Series 2025A, in an amount not to exceed $40,000,000.00 via a competitive sale.
This ordinance authorizes City staff and financial advisors, subject to parameters, to competitively bid the sale and the issuance of City of Dallas, Combination Tax and Revenue Certificates of Obligation, Series 2025A, tentatively scheduled in January 2025.
ESTIMATED SCHEDULE OF PROJECT
Authorized Preparation for Issuance of Bonds October 2024
Authorized Notice of Intent October 2024
Approval of Parameters Ordinances December 2024
Pricing January 2025
Delivery of Proceeds January 2025
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Government Performance and Financial Management Committee was briefed by memorandum regarding this matter on September 23, 2024. <https://dallascityhall.com/government/citymanager/Documents/FY23-24%20Memos/Upcoming%20Debt.pdf>
On October 8, 2024, the City Council authorized the preparation and the payment of future costs and expenses for Combination Tax and Revenue Certificates of Obligation, Series 2025A in an amount not to exceed $40,000,000.00, by Resolution No. 24-1477.
The Government Performance and Financial Management Committee was briefed on the “FY 2024-2025 Debt Issuance Overview” on October 22, 2024. <https://dallascityhall.com/government/citymanager/Documents/FY23-24%20Memos/FY%202024-25%20Debt%20Issuance%20Overview.pdf>
The Government Performance and Financial Management Committee will be briefed by memorandum regarding this matter on December 10, 2024.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
2025A Certificates of Obligation Fund |
$288,000.00 |
$0.00 |
$0.00 |
Attachment I provides an estimate of bond issuance costs for the proposed bonds and the M/WBE participation. Payment of fees and expenses is contingent upon the issuance and sale of the Combination Tax and Revenue Certificates of Obligation, Series 2025A.