STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: February 12, 2020
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller’s Office
EXECUTIVE: Elizabeth Reich
______________________________________________________________________
SUBJECT
title
A resolution authorizing the preparation of plans and the payment of potential future costs and expenses for the issuances of (1) General Obligation Refunding and Improvement Bonds, Series 2020 in an amount not to exceed $280,000,000; (2) Certificates of Obligation, Series 2020 in an amount not to exceed $16,000,000; and (3) Equipment Notes, Series 2020 in an amount not to exceed $33,000,000 - Total not to exceed $329,000,000 - Financing: This action has no cost consideration to the City (see Fiscal Information for potential future costs)
body
BACKGROUND
Pursuant to elections held in November 2017, the residents of Dallas voted and authorized the City to issue general obligation bonds for the purpose of providing funds for permanent public improvements. The adopted FY 2019-20 capital budget assumed the issuance of approximately $232 million in General Obligation bonds and $30 million in equipment acquisition notes in FY 2019-20. Additional monies are needed to finance restoration of City facilities damaged by severe storms. The City’s financial advisors, PFM Financial Advisors LLC, recommend: (1) issuance of refunding and improvement bonds to refund a portion of Series 2010C bonds and to finance capital improvement projects at the City, in an amount not to exceed $280,000,000; (2) issuance of certificates of obligation to finance restoration of damages to City facilities following severe storms, in an amount not to exceed $16,000,000; and (3) issuance of equipment notes to finance the purchase of City equipment, in an amount not to exceed $33,000,000.
The City's financial advisors recommend collectively issuing up to $329,000,000 in bonds, certificates of obligation, and equipment notes for the purpose of funding capital improvements, repairing structural damage to the City, and for the purchase of necessary equipment to maintain City services. The issuance and sale of the bonds, certificates of obligation, and equipment notes is contingent upon City Council’s approval to begin preparations of the issuances, approval of a Notice of Intent to issue Certificates of Obligation concurrently with this item, and parameters Ordinances currently scheduled for consideration and approval by the City Council in April 2020.
ESTIMATED SCHEDULE OF PROJECT
Authorize Preparation for Issuance of Bonds February 2020
Authorize Notice of Intent February 2020
Approval of Parameters Ordinances April 2020
Pricing April 2020
Delivery of Proceeds May 2020
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
City Council will be briefed by memorandum regarding this matter on February 7, 2020.
FISCAL INFORMATION
This action has no cost consideration to the City. The anticipated cost of issuance is $890,000 from Series 2020 General Obligation Refunding and Improvement Bond Funds, $110,000 from 2020 Certificates of Obligation Funds, and $145,000 from 2020 Equipment Acquisition Notes Funds; for a total estimated amount of $1,145,000. See Attachment I.
Attachment I provides an estimate of bond issuance costs for the proposed bonds, certificates of obligation, equipment notes, and the M/WBE participation. Payment of fees and expenses is contingent upon the issuance and sale of the General Obligation Refunding and Improvement Bonds, Series 2020; Certificates of Obligation, Series 2020; and Equipment Notes, Series 2020.