STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: October 28, 2020
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller's Office
EXECUTIVE: Elizabeth Reich
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SUBJECT
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Authorize amendments to Ordinance No. 30674 to: (1) extend the City of Dallas, Texas General Obligation Commercial Paper Notes Series A, and Series B short term obligations in an aggregate principal amount not to exceed $350,000,000; (2) authorize such short term obligations to be issued, sold, and delivered in the form of commercial paper notes; making certain covenants and agreements in connection therewith; resolving other matters related to the issuance, sale, security, and delivery of such short term obligations, including; (3) authorizing a twelve-month $350,000,000 Credit Agreement with J.P. Morgan Chase Bank, N.A.; (4) the continued use of U.S. Bank National Association as the Issuing and Paying Agent under existing agreements; (5) the continued use of Jefferies LLC as the dealer under existing Dealer Agreement; and (6) approving the payment of issuance costs in connection with the issuance of the short term obligations; approving the use of an Offering Memorandum in connection with the sale of the short term obligations; and providing an effective date - Total program costs not to exceed $2,647,750 - Financing: Current Funds ($447,750.00 upfront closing costs plus annual fees of $2,200,000 for a one-year total cost of $2,647,750) (subject to annual appropriations)
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BACKGROUND
In 2010 and again in 2017, City Council approved an ordinance establishing a $350 million General Obligation (GO) Commercial Paper (CP) 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 no...
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