Dallas is set to borrow another $250 million for projects in the 2024 bond program, along with money for fire, stormwater and sanitation fleets and the final piece of a state loan for water main replacement, if the City Council signs off Wednesday.
Three ordinances on the Oct. 28 agenda would authorize the sales. A memo from Chief Financial Officer Jack Ireland, dated Oct. 23, lays out what each one does.
Bond projects and a possible refinancing
The largest is a general obligation sale of up to $312 million. Of that, $250 million would pay for capital projects voters approved in the 2024 bond election, in line with the budget for the fiscal year that started Oct. 1. The rest, up to $58 million, would refinance eligible bonds the city issued in 2017, if doing so saves money.
The memo says the bonds will be sold through competitive bids. If market conditions on pricing day leave the refinancing short of the savings thresholds in the city's financial management criteria, the sale would go ahead with only the $250 million in new money. The agenda caption sets the ordinance's ceiling at $315 million.
Ahead of the sale, S&P Global Ratings assigned the bonds an AA- rating and Fitch Ratings assigned AA, both with a stable outlook, according to the memo. Pricing is scheduled for Nov. 12, with the city receiving the money in December.
An estimate attached to the item puts issuance costs at about $1.11 million, including $409,450 for two bond counsel firms, $331,000 for two financial advisors and $217,720 in rating agency fees. Hilltop Securities and Estrada Hinojosa & Co. are the city's co-financial advisors.
Equipment for fire, stormwater and sanitation
A second ordinance covers up to $36 million in equipment notes, which the memo says would buy equipment and fleet vehicles for Dallas Fire-Rescue, stormwater operations and sanitation services. Issuance costs for that sale are capped at $182,130 on the agenda.
