Regional Water System
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Revenue Refunding and Improvement Bonds, Series 2025; Resolution No. 25-30
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SUBJECT
recommendation
Adopt Resolution No. 25-30 authorizing the issuance of Refunding Bonds for the Regional Water System Series 2014 and 2015 Revenue Bonds and Refunding Bonds for the Extendable Commercial Paper (ECP) Bonds.
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PURPOSE
This authorization refinances selected Series 2014 and 2015 Revenue Bonds and allows the District to issue bonds to refund the ECP Bonds
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors adopt Resolution No. 25-30, “A Resolution Authorizing the Issuance, Sale and Delivery of North Texas Municipal Water District Water System Revenue Refunding and Improvement Bonds, Series 2025, 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 financed with ECP has already been approved by the Board |
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Amount: |
Approximately $884.6M. Actual amount to be determined at date of pricing. |
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Committee: |
This was an item on the April 9, 2025, 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 April 9, 2025, to review the Water System ECP Program and Bond Refunding.
o Refunding approximately $272.7M of Series 2014 and 2015 Bonds
o Refunding approximately $610.0M of ECP Program project award appropriations
• Staff presented to the Finance Committee timelines for the sale and a summary of the financing plan.
• Staff recommended and the Finance Committee approved a 10-Member Underwriting Syndicate to market the Bonds.
o JP Morgan Securities was selected as the lead Underwriter
• At this time, it is expected that approximately $884.60 million of 2025 revenue refunding 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 negotiated sale on June 26, 2025, and the estimated interest rate is 4.56%.
• NTMWD bond counsel, McCall, Parkhurst & Horton, LLP, has prepared the attached Bond 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