ORDINANCE authorizing the issuance of Public Improvement Refunding Bonds in one or more Series; authorizing the levy of an Ad Valorem Tax for the payment and security thereof; authorizing certain designated officials to approve the Principal Amount, Interest Rates, Prices, Redemption Features, Terms and Sale thereof in accordance with certain parameters; authorizing such officials to determine the outstanding obligations to be Defeased and Refunded; approving certain other Procedures, Provisions and Agreements related thereto, including one or more purchase contracts, Paying Agent/Registrar Agreements, Escrow Agreements, and Other Agreements; approving the Preparation, Distribution and use of one or more Preliminary Official Statements and Official Statements in connection with such offerings; making certain findings and other declarations necessary and incidental to the issuance of such bonds; and declaring an emergency

RECOMMENDATION:
Approve an Ordinance authorizing the issuance of Public Improvement Refunding Bonds in one or more series; authorizing the levy of an ad valorem tax for the payment and security thereof; authorizing certain designated officials to approve the principal amount, interest rates, prices, redemption features, terms, and sale thereof in accordance with certain parameters; authorizing such officials to determine the outstanding obligations to be defeased and refunded; approving certain other procedures, provisions and agreements related thereto, including one or more purchase contracts, paying agent/registrar agreements, escrow agreements, and other agreements; approving the preparation, distribution and use of one or more Preliminary Official Statements and Official Statements in connection with such offerings; making certain findings and other declarations necessary and incidental to the issuance of such bonds; and declaring an emergency.

SPECIFIC EXPLANATION:
The Public Improvement and Refunding Bonds issued in one or more series to refund certain outstanding short-term general obligation (tax supported) commercial paper notes and certain public improvement bonds to achieve present value debt service savings consistent with the parameters established under the City’s adopted financial policies. The principal amount of the Series 2025 Bonds (issued in one or more series) will not exceed $575 million.

The City has been issuing short-term commercial paper to fund its Capital Improvement Program and equipment procurements for over twenty years. Consistent with the City’s financial policies, outstanding general obligation commercial paper notes are periodically refinanced with long-term fixed rate bonds with a final maturity to match the useful life of the capital improvement project or equipment financed with such notes. This transaction represents the normal refinancing of these commercial paper notes with long-term fixed rate refunding bonds.

The Finance Working Group is recommending refunding certain outstanding general obligation commercial paper notes, certain outstanding public improvement bonds, and financing all related costs of issuance.

This transaction was presented to the Budget and Fiscal Affairs Committee on July 29, 2025.

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Melissa Dubowski, Chief Business Officer/Director of Finance Chris Hollins, Houston City Controller

Alma Tamborello                                  Phone: 832-393-9099