STRATEGIC PRIORITY: Government Performance and Financial Management
AGENDA DATE: June 9, 2021
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 2021C and in an amount not to exceed $150,000,000 - 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 refunding and retirement of commercial paper notes issued for interim financing of improvements to the City’s water and wastewater system. Issuance of revenue bonds for refunding and retirement of approximately $147,000,000 in commercial paper notes is in accordance with the capital program for water and wastewater improvements and is within the Fiscal Year 2020-21 operating and capital budgets for the Water Utilities Department.
The City's Co-Financial Advisors, Hilltop Securities, Inc. and Estrada Hinojosa, recommend a competitive sale based on favorable market conditions and Dallas Water Utilities’ stable credit profile. The issuance of bonds is contingent upon the approval of a parameters ordinance, scheduled for City Council consideration on August 11, 2021.
ESTIMATED SCHEDULE OF PROJECT
Authorized preparation for Issuance of Bonds June 2021
Approval of parameters ordinance August 2021
Pricing August 2021
Delivery of Proceeds September 2021
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Government Performance and Financial Performance Committee was briefed by memorandum regarding this matter on May 24, 2021. <http://cityofdallas.legistar.com/gateway.aspx?M=F&ID=f9b7fc5a-1860-490d-9af5-3fe9926770f2.pdf>
FISCAL INFORMATION
This action has no cost consideration to the City. Payment for cost of issuance is not made unless the bonds are issued. City Council approval of the ordinance authorizing the sale of bonds is scheduled for August 11, 2021. The anticipated cost of issuance is $565,000.00 from Dallas Water Utilities Fund.
M/WBE INFORMATION
Schedule I provides an estimate of bond issuance costs for the proposed bonds and the M/WBE participation.