STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: June 12, 2024
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller's Office
EXECUTIVE: Jack Ireland
______________________________________________________________________
SUBJECT
Title
A resolution authorizing the (1) execution of the Amended and Restated Revolving Credit Agreement with JPMorgan Chase Bank, National Association ("JPMorgan") in support of the City of Dallas, Texas Waterworks and Sewer System Commercial Paper Notes, Series F; and (2) execution of the Amended and Restated Fee Letter Agreement with JPMorgan; and (3) the execution of agreements pertaining thereto and resolving other matters related thereto for a three-year extension from July 8, 2024 to July 8, 2027 - Not to exceed $6,230,579 - Financing: Dallas Water Utilities Fund ($683,300 upfront closing costs plus three-year cost of $5,547,279) (subject to annual appropriations)
Body
BACKGROUND
Commercial paper provides interim financing for Dallas Water Utilities (DWU) 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. Commercial paper issuance is supported by lines of credit from highly rated banks. These lines of credit assure investors that the notes will be paid in the unlikely event that a note cannot be sold to another investor at maturity. Outstanding commercial paper is periodically reduced by refinancing it with long-term debt.
In 1987, City Council authorized an ordinance establishing a commercial paper program as interim financing for DWU capital improvements for a period of 10 years, ending in September 1997, with a maximum issuance amount of $100 million. Since 1987, DWU's initial commercial paper program has been reauthor...
Click here for full text