STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: February 8, 2023
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller’s Office
EXECUTIVE: Jack Ireland
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SUBJECT
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A resolution of the City Council of the City of Dallas, Texas (1) authorizing the publication of Notice of Intention to Issue Certificates of Obligation; (2) approving the preparation of a preliminary official statement and a Notice of Sale; and (3) providing for the effective date thereof - Financing: This action has no cost consideration to the City (see Fiscal Information)
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BACKGROUND
The City's financial advisors recommend the issuance of Combination Tax and Revenue Certificates of Obligation, Series 2023 to finance street improvements in an amount not to exceed $61,500,000. Federal tax regulations allow for the reimbursement of capital expenditures from bond or short-term debt proceeds. These regulations can be used to begin implementation prior to issuance of bonds or commercial paper.
Additionally, State law requires City Council approval of a Notice of Intention to Issue Certificates of Obligation under and pursuant to the provisions of Texas Local Government Code, Section 271.049, as amended.
Passage of this resolution will authorize the publication of the Notice of Intention to Issue Certificates of Obligation and allow for expenditures in advance of the Combination Tax and Revenue Certificates of Obligation, Series 2023, scheduled in April 2023.
ESTIMATED SCHEDULE OF PROJECT
Authorize Preparation for Issuance of Bonds February 2023
Authorize Notice of Intent February 2023
Approval of Parameters Ordinances April 2023
Pricing April 2023
Delivery of Proceeds May 2023
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Government Performance and Financial Management Committee was briefed on “FY 2022-23 Debt Issuance Overview,” on November 15, 2022.
The Government Performance and Financial Management Committee was briefed by memorandum regarding this matter on January 23, 2023. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=11593504&GUID=DA8A6E64-A6A0-459E-80D7-B05ECDEAAD81>
FISCAL INFORMATION
This action has no cost consideration to the City. The anticipated cost of issuance is approximately $1,275,000 from Series 2023A General Obligation Refunding and Improvement Bond Funds and 2023 Certificates of Obligation Funds. See Attachment I.
Attachment I provides an estimate of bond issuance costs for the proposed bonds, certificates of obligation, and the M/WBE participation. Payment of fees and expenses is contingent upon the issuance and sale of the General Obligation Refunding and Improvement Bonds, Series 2023A and Combination Tax and Revenue Certificates of Obligation, Series 2023.