Regional Water System
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Extending Resolution No. 24-06 Authorizing Refunding Bonds for Extendable Commercial Paper Bonds; Resolution No. 25-01
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SUBJECT
recommendation
Request authorization to extend Resolution No. 24-06 Refunding Bonds for the Regional Water System Extendable Commercial Paper Bonds.
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PURPOSE
The authority to issue bonds under Resolution No. 24-06 expires on February 21, 2025. This authorization extends the authority to March 1, 2025, and allows the District to issue bonds to refund the ECP Bonds in the event of a failed ECP remarketing. The resolution 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. 25-01, “Extending Resolution No. 24-06 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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Committee: |
This item was included in a Departmental Update at the January 8, 2025, Executive Committee meeting |
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
• On February 22, 2024, the Board of Directors approved Resolution No. 24-06 Authorizing Regional Water System refunding bonds for Extendable Commercial Paper. This one-year authorization expires on February 21, 2025.
• This authorization extends the effectiveness of the Refunding Resolution to March 1, 2025.
• A new resolution authorizing refunding bonds for the next one-year period, March 2, 2025, through March 1, 2026, will be scheduled for consideration at the February 27, 2025, Board Meeting.
• 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