STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: October 8, 2024
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller’s Office
EXECUTIVE: Jack Ireland
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SUBJECT
Title
A resolution authorizing the preparation of plans and the payment of potential future costs and expenses for the issuances of (1) General Obligation Refunding and Improvement Bonds, Series 2024C in an amount not to exceed $353,000,000; (2) Equipment Acquisition Contractual Obligations, Series 2024 in an amount not to exceed $35,000,000; and (3) Combination Tax and Revenue Certificates of Obligation, Series 2025 in an amount not to exceed $40,000,000 - Financing: This action has no cost consideration to the City (see Fiscal Information for potential future costs)
Body
BACKGROUND
This item authorizes the preparation of plans and the payment of potential future costs and expenses for multiple bond issuances. Pursuant to elections held in May 2024, the residents of Dallas voted and authorized the City to issue general obligation bonds for the purpose of providing funds for permanent public improvements. In addition to issuing bonds for capital projects, the City also issues bonds to satisfy other funding needs.
The City’s co-financial advisors, Hilltop Securities, Inc. and Estrada Hinojosa & Co., recommend collectively issuing up to $428,000,000 in bonds for the purpose of funding capital improvements, refunding outstanding obligations for savings, funding City equipment needs and certain Stormwater capital projects and initiatives. Based on the funding needs, the City’s co-financial advisors recommend the issuance of: (1) General Obligation Refunding and Improvement Bonds, Series 2024C to finance capital improvement projects at the City and refund up to $100,000,000 of eligible Series 2015 obligations for savings, in an amount not to exceed $353,000,000; (2) Equipment Acquisition Contractual Obligations, Series 2024 (equipment notes) to finance the purchase of City equipment, in an amount not to exceed $35,000,000; and (3) Combination Tax and Revenue Certificates of Obligation, Series 2025 in an amount not to exceed $40,000,000 to finance certain Stormwater capital projects as approved by City Council.
The issuance and sale of the bonds and certificates of obligation is contingent upon the City Council approval to begin preparations of the issuances, approval of a Notice of Intent to issue Certificates of Obligation concurrently with this item, and parameters Ordinances currently scheduled for consideration and approval by City Council in November and December 2024. The bond issuances are structured to issue separately according to funding needs and timing requirements.
ESTIMATED SCHEDULE OF PROJECT
Authorize Preparation for Issuance of Bonds October 2024
Authorize Notice of Intent October 2024
Approval of Parameters Ordinances November and December 2024
Pricing November 2024 and January 2025
Delivery of Proceeds December 2024 and 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>
FISCAL INFORMATION
This action has no cost consideration to the City. The anticipated cost of issuance is a total of approximately $1,557,000, collectively, from Series 2024C General Obligation Refunding and Improvement Bonds Fund; Series 2024 Equipment Acquisition Notes Fund; and Series 2025 Certificates of Obligation Fund. See Attachment I.
Attachment I provides an estimate of bond issuance costs for the proposed bonds, certificates of obligation, and the M/WBE participation. Payment of fees and expenses is contingent upon the issuance and sale of the bonds.