PILLAR: Fiscally Sound
AGENDA DATE: November 12, 2025
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller’s Office
PRIORITY: N/A
______________________________________________________________________
SUBJECT
Title
A resolution authorizing (1) an extension to the Credit Agreement with JPMorgan Chase Bank, National Association in support of the City of Dallas, Texas General Obligation Commercial Paper Notes Series A, and Series B; and (2) the execution of agreements pertaining thereto and resolving other matters related thereto for a one-year extension from November 28, 2025 to November 27, 2026 - Not to exceed $1,855,000 - Financing: Debt Service Fund
Body
BACKGROUND
In 2017 and again in 2020, the City Council approved an ordinance establishing a $350 million General Obligation Commercial Paper Program as interim financing for the City’s capital improvements. Contracts are awarded using commercial paper as a funding source. Notes are issued to pay project costs as invoices are received. Notes are typically sold at lower interest rates than longer-term bonds. The notes are periodically refinanced with longer-term bonds.
Commercial paper issuance is supported by lines of credit from highly rated banks. The current program is supported by a $350 million credit agreement from JPMorgan Chase Bank, N.A. (“JPMorgan”). These lines of credit assure investors that the commercial paper notes will be paid in the event that a note cannot be sold to another investor at maturity. The rating agencies rate commercial paper programs based on the rating of the banks providing the credit lines, although the credit rating and outlook of the commercial paper issuer affects the marketability of the notes as well as the rating of the credit bank.
The current commercial paper agreement with JPMorgan expires on November 28, 2025, JPMorgan has offered to continue providing the credit line supporting the City’s $350 million General Obligation notes at an amended annual fee of 0.32 percent from 0.34 percent for one year while a replacement commercial paper program is procured.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Government Performance and Financial Management Committee was briefed on October 16, 2017.
On October 25, 2017, the City Council authorized an ordinance authorizing the issuance of City of Dallas, Texas, General Obligation Commercial Paper Notes, Series A and Series B, in an aggregate principal amount not to exceed $350,000,000 for the purpose of funding certain authorized purposes; approving and authorizing certain officers and employees to act on behalf of the City in the selling and delivery of such notes; making certain covenants, agreements, and resolving other matters incident and related to the issuance, sale, delivery, and security of the notes, including the approval of an Issuing and Paying Agency Agreement, Credit Agreements, Offering Memorandum, and Dealer Agreement; and providing for an effective date by File No. 17-1647; Ordinance No. 30674.
On October 28, 2020, the City Council authorized amendments to Ordinance No. 30674 to: (1) extend the City of Dallas, Texas General Obligation Commercial Paper Notes Series A, and Series B short term obligations in an aggregate principal amount not to exceed $350,000,000; (2) authorize such short term obligations to be issued, sold, and delivered in the form of commercial paper notes; making certain covenants and agreements in connection therewith; resolving other matters related to the issuance, sale, security, and delivery of such short term obligations, including; (3) authorizing a twelve-month $350,000,000 Credit Agreement with J.P. Morgan Chase Bank, N.A.; (4) the continued use of U.S. Bank National Association as the Issuing and Paying Agent under existing agreements; (5) the continued use of Jefferies LLC as the dealer under existing Dealer Agreement; and (6) approving the payment of issuance costs in connection with the issuance of the short term obligations; approving the use of an Offering Memorandum in connection with the sale of the short term obligations; and providing an effective date by Ordinance No. 31668.
The Committee on Finance was briefed on “Existing Debt and FY26 Planned Debt” on October 21, 2025. <https://dallascityhall.com/government/citymanager/Documents/Council%20Materials/B.%20Existing%20Debt%20and%20FY26%20Planned%20Debt.pdf>
The Committee on Finance City Council was briefed by memorandum regarding this matter on November 47, 2025. <https://dallascityhall.com/government/citymanager/Documents/Council%20Materials/32.%2025-3155A.pdf>
FISCAL INFORMATION
|
Fund |
FY 2026 |
FY 2027 |
Future Years |
|
Debt Service Fund |
$1,855,000.00 |
$0.00 |
$0.00 |