STRATEGIC PRIORITY: Fiscally Sound
AGENDA DATE: August 13, 2025
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller’s Office
EXECUTIVE: Jack Ireland
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SUBJECT
Title
A resolution approving notes issued pursuant to a commercial paper program to finance improvements at Dallas Love Field - Financing: No cost consideration to the City
Body
BACKGROUND
On December 9, 2020, the City Council authorized the Love Field Airport Modernization Corporation (LFAMC) to establish an Airport System Commercial Paper Program, effectively, the Love Field Airport Modernization Corporation Airport System Commercial Paper Notes, AMT Series (the “Notes”), in an aggregate principal amount not to exceed $150,000,000.
Commercial paper provides interim financing for capital projects. The use of commercial paper permits more cost-efficient use of capital as short-term debt is issued to closely match the amount and timing of the award of capital project contracts. Commercial paper notes are normally sold at rates of interest that are lower than rates available at the same time on long-term debt. Outstanding commercial paper is periodically reduced by refinancing it with long-term debt.
Pursuant to the provisions of section 147(f) of the Internal Revenue Code of 1986 (the “Code”), it is necessary for the City Council, on a periodic basis, to approve the Notes and the projects to be financed and refinanced with the proceeds thereof, in order to enable the Notes to qualify as tax-exempt obligations under the Code. On July 30, 2025 July 24, 2024, a designated hearing officer of the LFAMC conducted a precursory public hearing with respect to the Notes and the Eligible Projects, in compliance with the provisions of section 147(f) of the Code.
The City’s bond counsel with respect to the LFAMC, McCall, Parkhurst & Horton LLP, recommend annual City Council approval by Resolution to ensure compliance as it relates to the Code and the tax-exempt status of the Notes.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 9, 2020, the City Council authorized a resolution authorizing the approval of Love Field Airport Modernization Corporation with respect to establishing a Commercial Paper Program to finance improvements at Love Field Airport; the issuance of Love Field Airport Modernization Corporation Airport System Commercial Paper Notes, AMT Series, in an aggregate principal amount at any one time outstanding not to exceed $150,000,000, to provide interim financing to pay Project Costs for Eligible Projects and to refund obligations issued in connection with Eligible Projects by Resolution No. 20-1875.
On June 22, 2022, the City Council authorized a resolution approving notes issued pursuant to a commercial paper program to finance improvements at Dallas Love Field by Resolution No. 22-0941.
On April 26, 2023, the City Council authorized a resolution approving notes issued pursuant to a commercial paper program to finance improvements at Dallas Love Field by Resolution No. 23-0537.
On August 14, 2024, the City Council authorized a resolution approving notes issued pursuant to a commercial paper program to finance improvements at Dallas Love Field by Resolution No. 24-1039.
The City Council was briefed by memorandum regarding this matter on August 8, 2025. <https://dallascityhall.com/government/citymanager/Documents/FY24-25%20Memos/LFAMC%20TEFRA%20Memo.pdf>
FISCAL INFORMATION
No cost consideration to the City.