STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: May 27, 2020
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller's Office
EXECUTIVE: Elizabeth Reich
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SUBJECT
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An ordinance authorizing the issuance and sale of City of Dallas, Texas Waterworks and Sewer System Revenue Refunding Bonds, Series 2020C and Taxable Series 2020D in a principal amount not to exceed $726,000,000; establishing parameters regarding the sale of the bonds; approving the execution of agreements in connection with the sale of the bonds; and all other matters related thereto - Cost Nnot to exceed $1,441,666 - Financing: Water Utilities Current Funds
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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 revenue bonds (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...
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