STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: November 13, 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, Equipment Acquisition Contractual Obligations, Series 2024, in an aggregate principal amount not to exceed $35,000,000.00; (2) levying a tax for payment thereof; (3) awarding the sale thereof; (4) the execution and delivery of a Paying Agent/Registrar Agreement and Purchase Letter; and (5) enacting other provisions relating to the subject - Not to exceed $220,000.00 - Financing: 2024 Equipment Acquisition Notes Funds
Body
BACKGROUND
On October 8, 2024, City Council authorized the preparations of plans and the payment of potential future costs and expenses for the issuances of Equipment Acquisition Contractual Obligation Notes, Series 2024, in an amount not to exceed $35,500,000.00 to finance the purchase of City equipment. Federal tax regulations allow for the reimbursement of capital expenditures from bond or short-term debt proceeds. These regulations can be used to begin implementation prior to issuance of bonds or commercial paper.
As such, the City’s co-financial advisors, Hilltop Securities, Inc. and Estrada Hinojosa & Co., recommend the issuance of Equipment Acquisition Contractual Obligations, Series 2024 in an amount not to exceed $35,500,000.00, to finance the purchase of City equipment. This ordinance authorizes City staff and financial advisors, subject to parameters, to issue City of Dallas, Equipment Acquisition Contractual Obligations, Series 2024 in a competitive sale scheduled for November 2024.
ESTIMATED SCHEDULE OF PROJECT
Authorized Preparation of Issuance of Bonds October 2024
Approval of Ordinance November 2024
Pricing November 2024
Delivery of Proceeds December 2024
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 the issuances of Equipment Acquisition Contractual Obligations, Series 2024 in an amount not to exceed $35,000,000.00, 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.
The Government Performance and Financial Management Committee was briefed by memorandum regarding this matter on November 7, 2024.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
2024 Equipment Acquisition Notes Fund |
$220,000.00 |
$0.00 |
$0.00 |
Attachment I provides an estimate of bond issuance costs for the proposed equipment notes and the M/WBE participation. Payment of fees and expenses is contingent upon the issuance and sale of the Equipment Acquisition Contractual Obligations, Series 2024.