PILLAR: Fiscally Sound
AGENDA DATE: November 12, 2025
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller's Office
PRIORITY: N/A
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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 per...
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