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Muddy Creek Regional Wastewater System Contract Revenue Bonds, Series 2024
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SUBJECT
recommendation
Request authorization to issue Revenue Bonds for the Muddy Creek Regional Wastewater System.
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PURPOSE
These bonds will fund construction for plant expansion and improvements to the operations building at the Muddy Creek Wastewater Treatment Plant.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors adopt Resolution No. 24-09, “A Resolution Authorizing the Issuance, Sale and Delivery of North Texas Municipal Water District Muddy Creek Regional Wastewater 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 the Muddy Creek Regional Wastewater System |
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Project: |
Muddy Creek Regional Wastewater System Projects |
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Amount: |
Approximately $86.3 million of 2024 revenue bonds will be issued. 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 proposed bond sale including:
o Muddy Creek WWTP Expansion to 12.5 MGD - Construction
o Muddy Creek WWTP Ops Building Improvements - 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 $86.3 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 April 25, 2024, and the estimated interest rate is 4.4%.
• NTMWD bond counsel, McCall, Parkhurst & Horton, LLP, has prepared the attached Bond Resolution and NTMWD financial advisor, Hilltop Securities, Inc., has prepared theattached 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