Mustang Creek Wastewater Interceptor
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Mustang Creek Wastewater Interceptor System Contract Revenue Bonds, Series 2024; Resolution No. 24-31
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SUBJECT
recommendation
Request authorization to issue Revenue Bonds for the Mustang Creek Wastewater Interceptor System in the amount of approximately $24,100,000.
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PURPOSE
Proceeds from the sale of the Bonds will be used to fund the Forney Mustang Creek Lift Station and Parallel Force Main. This project includes a new force main and expansion of the lift station needed to meet the growth projections of the City of Forney.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors adopt Resolution No. 24-31, "A Resolution Authorizing the Issuance, Sale and Delivery of North Texas Municipal Water District Mustang Creek Wastewater Interceptor System. Contract Revenue Bonds, Series 2024; and Approving and Authorizing Instruments and Procedures Relating Thereto."
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Consultant: |
N/A |
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Scope: |
Fund improvements to Mustang Creek Wastewater Interceptor |
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Project: |
Forney Mustang Creek Lift Station and Parallel Force Main |
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Amount: |
Approximately $24.1 million of 2024 revenue bonds will be issued. Actual amount to be determined at date of pricing. |
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Committee: |
This was an item on the June 12, 2024, Finance Committee meeting agenda |
DRIVER(S) FOR THIS PROJECT
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Strategic Objective: |
2.3 Rigorous Financial Management |
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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 June 12, 2024, to review the proposed bond sale including:
o Forney Mustang Creek Lift Station Phase II - Construction
o Forney Mustang Creek Parallel Force Main - Construction
• Staff and members of Hilltop Securities, Inc. also presented the Finance Committee with timelines for the sale and a summary of the financing plan.
• At this time, it is expected that approximately $24.1 million of 2024 revenue bonds will be issued. The actual amount of the bond sale will be determined on the date of pricing.
• The transaction will be sold via competitive bid on September 26, 2024, and the estimated interest rate is 4.5%.
• NTMWD bond counsel, McCall, Parkhurst & Horton, LLP, has prepared the attached Bond Resolution and NTMWD financial advisor, Hilltop Securities, Inc., has prepared the attached Preliminary Official Statement.
• 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