PILLAR: Fiscally Sound
AGENDA DATE: June 10, 2026
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller’s Office
PRIORITY: N/A
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SUBJECT
Title
A resolution authorizing the preparation of plans and the payment of potential future costs and expenses for the issuance of Waterworks and Sewer System Revenue Refunding Bonds, Series 2026A, in an amount not to exceed $205,000,000 - Financing: This action has no cost consideration to the City (see Fiscal Information for potential future costs)
*In alignment with Water and Wastewater Capital Improvement Program.
Body
BACKGROUND
This proposed revenue bond sale is for the refunding and retirement of commercial paper notes issued for interim financing of improvements to the City’s water and wastewater system. Issuance of revenue bonds for refunding and retirement of approximately $200,000,000 in commercial paper notes is in accordance with the capital program for water and wastewater improvements and is within the Fiscal Year 2025-26 operating and capital budgets for the Water Utilities department.
The City's Co-Financial Advisors, Hilltop Securities, Inc. and Estrada Hinojosa, recommend a competitive sale based on funding needs and market conditions supported by Dallas Water Utilities’ stable credit profile. The issuance of bonds is contingent upon the approval of a parameters ordinance, scheduled for City Council consideration in June 2026.
ESTIMATED SCHEDULE OF PROJECT
Authorized preparation for Issuance of Bonds June 2026
Approval of parameters ordinance June 2026
Pricing July 2026
Delivery of Proceeds August 2026
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Committee on Finance was briefed on the “Existing Debt and FY26 Planned Debt,” on October 21, 2025.
The City Council was briefed by memorandum regarding this matter on June 5, 2026. <https://dallascityhall.com/government/citymanager/Documents/FY25-26%20Memos/A%20-%202.%2026-1891A.pdf>
FISCAL INFORMATION
This action has no cost consideration to the City. Payment for cost of issuance is not made unless the bonds are issued. The City Council approval of the ordinance authorizing the sale of bonds is scheduled for June 24, 2026. The anticipated cost of issuance is $660,000 from Dallas Water Utilities Funds. Attachment I provides an estimate of bond issuance costs for the proposed bonds.