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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 10/13/2020
Item Creation Date:
FIN - CUS 2020E (TWDB)
Agenda Item#: 7.
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| | | | | | | | Summary:
ORDINANCE supplementing the City of Houston, Texas Master Ordinance No. 2004-299; providing for the issuance of City of Houston, Texas, Combined Utility System Subordinate Lien Revenue Bonds, Series 2020E, 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 execution and delivery of a paying agent/registrar agreement; and declaring an emergency |
| | | | | | | | Background:
RECOMMENDATION:
Approve ordinance authorizing the City of Houston Combined Utility System Subordinate Lien Revenue Bonds, Series 2020E, in an aggregate amount not to exceed $38 million. These bonds will be privately placed with the Texas Water Development Board.
SPECIFIC EXPLANATION:
The Texas Water Development Board (the “TWDB”) administers programs that provide below market, low-interest rate loans to applicants. One of these programs is known as the State Water Implementation Revenue Fund (“SWIRFT”), which is open to political subdivisions undertaking a project included in the adopted regional water plans and in the state water plan. City of Houston Combined Utility System Subordinate Lien Revenue Bonds, Series 2020E will be issued in an amount not to exceed $38 million.
On August 26, 2020 City Council approved the first step in this transaction, which was the ordinance for the financing agreement between City of Houston and TWDB for the design and construction of the Northeast plant water transmission lines. The ordinance covered by this RCA is step two in the same financing arrangement. The Finance Working Group (“FWG”) recommends that the City issue the CUS Series 2020E bonds with the proceeds to be used to fund approved projects in the City’s adopted CIP and pay costs of issuance.
The CUS Series 2020E bonds will be privately placed with the TWDB, which eliminates the need for underwriters. The closing is expected to occur in November 2020.
This transaction was presented to the Budget and Fiscal Affairs Committee on June 2, 2020.
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Tantri Emo, Chief Business Officer/Director of Finance Chris B. Brown, Houston City Controller
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| | | | | | | | Prior Council Action:
Ordinance No. 2004-299
Ordinance No. 2020-720 |
| | | | | | | | Amount and Source of Funding:
n/a |
| | | | | | | | Contact Information:
Melissa Dubowski Phone: 832-393-9101
Charisse Mosely Phone: 832-393-3529 |
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