STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: September 9, 2020
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller's Office
EXECUTIVE: Elizabeth Reich
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SUBJECT
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A resolution authorizing the Love Field Airport Modernization Corporation ("LFAMC" or "Issuer") to negotiate agreements and instruments to which the Issuer is a party in connection with the issuance of its Airport System Series A short term obligations in an aggregate principal amount not to exceed $150,000,000, including, but not limited to: (1) authorizing such short term obligations to be issued, sold, and delivered in various forms, including commercial paper notes and a bank note; (2) making certain covenants and agreements in connection therewith; (3) establishing a maximum term of the program ending no later than September 30, 2030; (4) resolving other matters related to the issuance, sale, security, and delivery of such short term obligations; (5) approving the payment of issuance costs in connection with the issuance of the short term obligations; (6) approving the preparation of an Offering Memorandum in connection with the sale of the short-term obligations; and (7) providing an effective date - Financing: This action has no cost consideration to the City
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BACKGROUND
Commercial paper provides interim financing for 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. Outstanding commercial paper is periodically reduced by refinancing it with long-term debt. The City currently has two existing commercial paper programs; a general obligation commercial paper program supported by voter-approved debt and ...
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