Regional Water System
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Refunding Bonds for Extendable Commercial Paper Bonds
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ACTION
recommendation
Request authorization to issue Refunding Bonds for the Regional Water System Extendable Commercial Paper Bonds.
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PURPOSE
This authorization allows the District to issue bonds to refund the ECP Bonds and replaces the need for bank liquidity to support the ECP program.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors adopt Resolution No. 24-06, A “Resolution authorizing the Issuance, Sale, and Delivery of North Texas Municipal Water District, Water System Revenue ECP Bonds, Pledging Revenues for the Payment of the Bonds, Approving an Official Statement, and Authorizing Other Instruments and Procedures Relating Thereto.
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Consultant: |
N/A |
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Scope: |
Fund Improvements to the Regional Water System |
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Project: |
Multiple. Each Capital Improvement Plan Contract will be brought to the Board for consideration |
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Amount: |
Not to exceed $700,000,000. Actual amount to be determined at date of pricing |
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Strategic Objective: |
2.3 Rigorous Financial Management |
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Committee: |
This item was on the February 7, 2024, Finance Committee meeting agenda |
DRIVER(S) FOR THIS PROJECT
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☐ Regulatory Compliance |
☐ Asset Condition |
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☐ Capacity |
☐ Redundancy/Resiliency |
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☐ Relocation or External Requests |
☐ Operational Efficiency |
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☐ Safety |
☒ Administrative |
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☐ Policy |
☐ Other _____________ |
BACKGROUND
• The Finance Committee met on February 7, 2024, to review the ECP Program.
• On March 23, 2023, the Board of Directors approved a limit of $700,000,000 for the Regional Water System ECP Program.
• The bonds to refund the ECP will not be sold until necessary and only in the event of a failed ECP remarketing.
• The actual amount of the bond sale will be determined on the date of pricing.
• NTMWD bond counsel, McCall, Parkhurst, and Horton, LLP, has prepared the attached Resolution.
• Representatives from McCall, Parkhurst & Horton, LLP as well as Hilltop Securities, Inc., will be available at the Board meeting to review the documents and financing procedures.
FUNDING
N/A