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 Waterworks and Sewer System Revenue Refunding Bonds, Series 2024 in a principal amount not to exceed $295,000,000.00; (2) establishing parameters regarding the sale of the bonds; (3) approving the execution of agreements in connection with the sale of the bonds; and (4) all other matters related thereto - Not to exceed $856,000.00 - Financing: Dallas Water Utilities Fund
Body
BACKGROUND
This proposed revenue bond sale is for the purpose of refunding and retirement of commercial paper notes issued for interim financing of improvements to the City’s water and wastewater system, in accordance with the capital program for water and wastewater improvements and the Fiscal Year 2024-25 operating and capital budgets for the Water Utilities Department, and refund eligible outstanding Series 2012A and Series 2013 obligations for savings in an estimated amount of $981,512.08. Currently, the estimated amount of commercial paper outstanding to be refunded at the time of pricing is approximately $260,900,000.00, and the eligible refunding for Series 2012A and Series 2013 is an amount up to $32,650,000.00. At the advisement of the City's Co-Financial Advisors, Hilltop Securities, Inc. and Estrada Hinojosa & Co., the bonds will be sold via a competitive sale.
This ordinance authorizes, subject to parameters, city staff and financial advisors to conduct the sale and issuance of City of Dallas, Texas Waterworks and Sewer System Revenue Refunding Bonds, Series 2024 in a principal amount not to exceed $295,000,000.00.
ESTIMATED SCHEDULE OF PROJECT
Authorized preparation for Issuance of Bonds October 2024
Approval of parameters 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 was briefed by memorandum regarding this matter on September 23, 2024. <https://dallascityhall.com/government/citymanager/Documents/FY23-24%20Memos/Resolution%20Authorizing%20the%20Issuance%20of%20City%20of%20Dallas.pdf>
On October 8, 2024, City Council authorized the preparation of plans for an issuance of Waterworks and Sewer System Revenue Refunding Bonds, Series 2024 in an amount not to exceed $295,000,000.00, by Resolution No. 24-1479.
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. <https://dallascityhall.com/government/citymanager/Documents/FY24-25%20Memos/Upcoming%20Agenda%20Items%2024-324%203332%20and%2024%203333%20for%20November%2013%202024.pdf>
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
Dallas Water Utilities Fund |
$856,000.00 |
$0.00 |
$0.00 |