SUBJECT:
Approve ordinance supplementing the City of Houston, Texas Master Ordinance authorizing the issuance of City of Houston, Texas Combined Utility System First Lien Revenue Bonds, Series 2016A.
RECOMMENDATION: (Summary)
Approve ordinance authorizing the City of Houston Combined Utility System First Lien Revenue Bonds, Series 2016A, in an aggregate amount not to exceed $64 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 2016A will be issued in an amount not to exceed $64 million.
The Finance Working Group (“FWG”) recommends that the City issue the CUS Series 2016A 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 2016A Bonds will be privately placed with the TWDB, which eliminates the need for underwriters. The closing is expected to occur late January 2016. 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 December 8, 2015.
RECOMMENDATION:
The FWG recommends the approval of this item.