ORDINANCE supplementing the City of Houston, Texas Master Ordinance No. 2004-299; providing for the issuance of the City of Houston, Texas, Combined Utility System First Lien Revenue Bonds, Series 2019A, providing for the amounts, interest rates, prices, and terms thereof and other matters relating thereto; providing for the payment thereof; making other provisions regarding such bonds and matters incident thereto; authorizing a Co-Bond Counsel Agreement; authorizing execution and delivery of a Paying Agent/Registrar Agreement; and declaring an emergency

RECOMMENDATION:

Approve ordinance authorizing the City of Houston Combined Utility System First Lien Revenue Bonds, Series 2019A, in an aggregate amount not to exceed $65 million.  These bonds will be privately placed with the Texas Water Development Board.

SPECIFIC EXPLANATION:

The Texas Water Development Board (the “TWDB”) administers a program that provides below market, low-interest rate loans to applicants to assist in meeting clean water needs of communities. This program is known as the Clean Water State Revolving Fund (“CWSRF”), which is open to political subdivisions that own and operate a wastewater system. The City’s Combined Utility System (“CUS”) has participated in this program since the late 1980’s. The City of Houston Combined Utility System First Lien Revenue Bonds, Series 2019A will be issued in an amount not to exceed $65 million.

The Finance Working Group (“FWG”) recommends that the City issue the CUS Series 2019A Bonds with the proceeds to be used to fund approved projects in the City’s adopted CIP, fund a reserve fund, if necessary, and pay costs of issuance.

The CUS Series 2019A Bonds will be privately placed with the TWDB, which eliminates the need for underwriters. The closing is expected to occur mid-April 2019. Norton Rose Fulbright LLP and Burney & Foreman are recommended as co-bond counsel.

This transaction was presented to the Budget and Fiscal Affairs Committee on March 5, 2019.

Recommendation:

The FWG recommends the approval of this item.

______________________________                                              __________________________

Melissa Dubowski               Phone: 832-393-9101

Charisse Mosely                 Phone: 832-393-3529