STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: October 23, 2024
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller's Office
EXECUTIVE: Jack Ireland
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SUBJECT
Title
An ordinance authorizing the issuance and sale of City of Dallas, Texas Waterworks and Sewer System Revenue Bonds, Series 2024C, in the amount of $34,000,000 to the Texas Water Development Board; awarding the sale of the bonds; approving the execution of agreements in connection with the sale of the bonds; and all other matters related thereto - Not to exceed $175,000 - Financing: Dallas Water Utilities Fund
Body
BACKGROUND
On April 27, 2022, the City Council authorized the City Manager and the Director of Dallas Water Utilities Department (DWU) to submit loan applications to the Texas Water Development Board (TWDB) for low-cost financial assistance for planning, design, and construction of projects on programs on the prioritization list. Financial assistance applications for State Water Implementation Fund for Texas (SWIFT) projects were submitted by DWU in May 2022, to include two eligible projects representing $80.8 million in planned capital improvements and one multi-year commitment with TWDB of $170 million to fund DWU's water main replacement program for five years for a total funding commitment of $250.8 million.
In accordance with the SWIRFT funding commitment, DWU will issue $34.0 million in Waterworks and Sewer System Revenue Bonds, Series 2024C (the "Series 2024C Bonds") for Project Loan LM241535 that will be purchased by the TWDB. Through the purchase of our bonds, the TWDB will in turn provide the City with interest rates based on the cost of funds, which reflects the program's AAA credit rating wherein the interest rate is further reduced by a subsidy established by TWDB for each funding cycle. This will result in an average debt service payment reduction over the life of the loans...
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