STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: May 13, 2020
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller's Office
EXECUTIVE: Elizabeth Reich
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SUBJECT
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Authorize the preparation of plans for an issuance of Waterworks and Sewer System Revenue Refunding Bonds, Series 2020C and Taxable Series 2020D in an amount not to exceed $726,000,000 - Financing: This action has no cost consideration to the City (see Fiscal Information for potential future costs)
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BACKGROUND
This proposed revenue bond sale is for the following purposes: (1) refunding and retirement of commercial paper notes issued for interim financing of improvements to the City's water and wastewater system; and (2) refund outstanding Series 2009B, Series 2009C, Series 2010, Series 2011, Series 2012A, and Series 2013 obligations (the "Refundable Bonds").
Issuance of revenue bonds for refunding and retirement of approximately $260,000,000 in commercial paper notes is in accordance with the capital program for water and wastewater improvements and is within the Fiscal Year 2019-20 operating and capital budgets for the Water Utilities Department.
Approximately $424,153,000 in principal amount of currently outstanding Dallas Water Utilities bonds will be eligible to be refunded with proceeds from the issue. The City's co-financial advisors, Hilltop Securities and Estrada Hinojosa, recommend refunding of certain maturities in Series 2009B, Series 2009C, Series 2010, Series 2011, Series 2012A, and Series 2013. Based on recent market conditions, the refunding is expected to result in cash savings of approximately $67.74 million and a net present value savings of approximately $43.97 million, which is approximately 10.37 percent of the par amount of the Refundable Bonds. Actual savings will depend on market conditions at the time of the sale.
If interest rate conditions result in a significant...
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