SUBJECT:
Approve ordinance supplementing the City of Houston, Texas Master Ordinance authorizing the issuance of City of Houston, Texas Combined Utility System Subordinate Lien Revenue Bonds, Series 2015E.
RECOMMENDATION: (Summary)
Approve ordinance authorizing the City of Houston Combined Utility System Subordinate Lien Revenue Bonds, Series 2015E, in an aggregate amount not to exceed $26 million, and approve funding for a reserve fund out of the Combined Utility System Operating Fund 8301 in an amount not to exceed $646,248. 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 Fund (“SWIFT”), 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 Revenue Bonds, Series 2015E will be issued in an amount not to exceed $26 million. In addition, a reserve fund in an amount not to exceed $646,248 will be funded out of the Combined Utility System Operating Fund 8301. The Finance Working Group (“FWG”) recommends that the City issue the CUS Series 2015E 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 2015E Bonds will be privately placed with the TWDB, which eliminates the need for underwriters. The closing is expected to occur mid December 2015. 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 August 4, 2015.
Recommendation:
The FWG recommends the approval of this item.