STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: April 26, 2023
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Controller's Office
EXECUTIVE: Jack Ireland
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SUBJECT
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Authorize the appointment of an underwriting syndicate consisting of TBD, for the issuance of (1) General Obligation Refunding and Improvement Bonds, Series 2023A in an amount not to exceed $455,880,000; and (2) Combination Tax and Revenue Certificates of Obligation, Series 2023 in an amount not to exceed $61,500,000 - Financing: No cost consideration to the City
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BACKGROUND
On April 12, 2023, City Council authorized the issuance of City of Dallas, Texas, General Obligation Refunding and Improvement Bonds, Series 2023 and Combination Tax and Revenue Certificates of Obligation, Series 2023 (collectively, the "Bonds"), for the purpose of funding capital improvements, refunding outstanding debt obligations for savings, and repairing structural damage to the City. While the City maintains a favorable credit profile, due to current market conditions the City's financial advisors, PFM Financial Advisors LLC, recommend the issuance of the Bonds via a negotiated sale. This action will allow the City to appoint an underwriting syndicate for a negotiated sale of the Bonds.
The City has historically maintained a pool of designated eligible underwriters for negotiated bond financings. On April 12, 2023, the City issued a request for proposals from the pool of qualified firms for General Obligation Refunding and Improvement Bonds underwriting and received TBD proposals in response. The underwriting syndicated is selected based on factors including the firms experience, proposed structure and marketing of the Bonds. Underwriters are compensated through an underwriting spread obtained when pricing the bonds.
To accommodate this transaction, the City's co-financial advisors recommended a syndicate of five und...
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