{"MatterTextId":26797,"MatterTextGuid":"7D8B420A-6A20-401D-974B-84D97E46DDBF","MatterTextLastModifiedUtc":"2026-09-09T20:08:13.41","MatterTextRowVersion":"AAAAAALFPkQ=","MatterTextMatterId":26185,"MatterTextVersion":"1","MatterTextPlain":"PILLAR:\tFiscally Sound\nAGENDA DATE:\tOctober 14, 2026\nCOUNCIL DISTRICT(S):\tN/A\nDEPARTMENT:\tCity Controller’s Office\nPRIORITY:\tN/A\n______________________________________________________________________\nSUBJECT\n\n..Title\nAn ordinance authorizing and establishing the City of Dallas, Texas, General Obligation Extendable Commercial Paper Program, Series A; under which will be issued from time to time short term obligations in an aggregate principal amount not to exceed $350,000,000 at any one time outstanding; making certain covenants and agreements in connection therewith; resolving other matters incident and related to the issuance, sale, and delivery of and security for Extendable Commercial Paper Notes issued under such program; approving an Offering Memorandum and its use by the Dealers; and resolving other matters related thereto – Not to exceed $855,000 – Financing: Debt Service Fund (subject to annual appropriations)\n\n..Body\nBACKGROUND\n\nThe City utilizes commercial paper to award contracts, in accordance with the City Charter, Section 9 and Section 10, and to provide interim financing for capital projects. Commercial Paper allows for more cost-efficient uses of capital as short-term debt is issued to closely match the amount and timing of the award of capital project contracts, which is then periodically reduced by refinancing it with long-term debt. In alignment with the FY 2026-27 Adopted Budget and general obligation capital improvement plan, the City is seeking to establish an Extendable Commercial Paper Program to provide a source of appropriation authority and capital at a low cost to the City, replacing the existing program expiring in November 2026. Traditionally, the City’s commercial paper programs are supported by letters of credit from highly rated liquidity providers and assessed hefty fees. Extendable Commercial Paper is supported by the City’s own credit rating and does not require a letter of credit from a bank which lowers the overall cost of the program to the City. Costs are incurred to establish the program, and only thereafter if commercial paper is issued, requiring commercial paper Dealer services. \n\n\n\n\n\nTo support the general obligation capital improvement plan, the City’s Co-Financial Advisors, Hilltop Securities Inc. and Estrada Hinojosa & Company, recommend the establishment of General Obligation Extendable Commercial Paper Notes, Series A (the “Notes”), to be issued as tax-exempt Notes, from time to time, in an aggregate principal amount not to exceed $350,000,000; and further recommend the selection of two providers to serve as commercial paper Dealer based on the size of the program.\n\nOn April 30, 2026, the Office of Procurement Services issued a Request for Competitive Sealed Proposals seeking responses from qualified financial institutions to provide one or more services related to the establishment of separate short-term borrowing programs for the Stormwater capital improvement program, and Love Field Expansion Airport Program and General Obligation capital improvement program, to replace the existing programs expiring in the fall of 2026. \n\nProposals specific to the Notes have been received and evaluated by the procurement evaluation committee, City staff, and the City’s Co-Financial Advisors. As a result, Wells Fargo Securities ($200 million) and JPMorgan Securities LLC ($150 million) were deemed most favorable as bids for Dealer services. In an informal bid, U.S. Bank Trust Company, National Association was selected as commercial paper Issuing and Paying Agent.\n\nThis item authorizes the establishment of the General Obligation Extendable Commercial Paper Program. Pending approval of the ordinance, the effective date of the General Obligation Extendable Notes is November 10, 2026.\n\nESTIMATED SCHEDULE OF PROJECT\n\nCommittee on Finance\t\t\tSeptember 2026\nCity Council Ordinance Approval\t\tOctober 2026\nEffective Date of Notes\t\t\tNovember 2026\n\nPRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)\n\nThe Finance Committee was briefed on the “FY 2026-27 Debt Program Overview and Planned Debt Transactions” on September 22, 2026.  \n\nThe City Council was briefed by memorandum regarding this matter on October 9, 2026. \n\nFISCAL INFORMATION\n\nFund\n\tFY 2027\n\tFY 2028\n\tFuture Years\n\t\n\tDebt Service Fund\n\t$732,000.00\n\t$41,000.00\n\t$82,000.00\n\t\n\t\n","MatterTextRtf":"{\\rtf1\\fbidis\\ansi\\ansicpg1252\\deff0\\deflang1033\\deflangfe1033{\\fonttbl{\\f0\\fswiss\\fprq2\\fcharset0 Arial;}}\n{\\colortbl ;\\red0\\green112\\blue192;\\red255\\green255\\blue255;\\red5\\green99\\blue193;}\n\\viewkind4\\uc1\\pard\\ltrpar\\sa160\\sl252\\slmult1\\tx3060\\cf1\\b\\f0\\fs24 PILLAR:\\tab\\cf0\\b0 Fiscally Sound\\par\n\\cf1\\b AGENDA DATE:\\tab\\cf0\\b0 October 14, 2026\\par\n\\cf1\\b COUNCIL DISTRICT(S):\\tab\\cf0\\b0 N/A\\b\\par\n\\cf1 DEPARTMENT:\\tab\\cf0\\b0 City Controller\\rquote s Office\\par\n\\cf1\\b PRIORITY:\\tab\\cf0\\b0 N/A\\par\n\\pard\\ltrpar\\sa160\\sl252\\slmult1\\qj ______________________________________________________________________\\par\n\\pard\\ltrpar\\qj\\ul\\b SUBJECT\\par\n\\ulnone\\b0\\par\n\\cf2\\fs16 ..Title\\par\n\\cf0\\fs24 An ordinance authorizing and establishing the City of Dallas, Texas, General Obligation Extendable Commercial Paper Program, Series A; under which will be issued from time to time short term obligations in an aggregate principal amount not to exceed $350,000,000 at any one time outstanding; making certain covenants and agreements in connection therewith; resolving other matters incident and related to the issuance, sale, and delivery of and security for Extendable Commercial Paper Notes issued under such program; approving an Offering Memorandum and its use by the Dealers; and resolving other matters related thereto - Not to exceed $855,000 - Financing: Debt Service Fund (subject to annual appropriations)\\par\n\\b\\par\n\\cf2\\b0\\fs16 ..Body\\par\n\\cf0\\ul\\b\\fs24 BACKGROUND\\par\n\\ulnone\\b0\\par\nThe City utilizes commercial paper to award contracts, in accordance with the City Charter, Section 9 and Section 10, and to provide interim financing for capital projects. Commercial Paper allows for more cost-efficient uses of capital as short-term debt is issued to closely match the amount and timing of the award of capital project contracts, which is then periodically reduced by refinancing it with long-term debt. In alignment with the FY 2026-27 Adopted Budget and general obligation capital improvement plan, the City is seeking to establish an Extendable Commercial Paper Program to provide a source of appropriation authority and capital at a low cost to the City, replacing the existing program expiring in November 2026. Traditionally, the City\\rquote s commercial paper programs are supported by letters of credit from highly rated liquidity providers and assessed hefty fees. Extendable Commercial Paper is supported by the City\\rquote s own credit rating and does not require a letter of credit from a bank which lowers the overall cost of the program to the City. Costs are incurred to establish the program, and only thereafter if commercial paper is issued, requiring commercial paper Dealer services. \\par\n\\par\n\\par\n\\par\n\\par\n\\par\nTo support the general obligation capital improvement plan, the City\\rquote s Co-Financial Advisors, Hilltop Securities Inc. and Estrada Hinojosa & Company, recommend the establishment of General Obligation Extendable Commercial Paper Notes, Series A (the \\ldblquote Notes\\rdblquote ), to be issued as tax-exempt Notes, from time to time, in an aggregate principal amount not to exceed $350,000,000; and further recommend the selection of two providers to serve as commercial paper Dealer based on the size of the program.\\par\n\\par\nOn April 30, 2026, the Office of Procurement Services issued a Request for Competitive Sealed Proposals seeking responses from qualified financial institutions to provide one or more services related to the establishment of separate short-term borrowing programs for the Stormwater capital improvement program, and Love Field Expansion Airport Program and General Obligation capital improvement program, to replace the existing programs expiring in the fall of 2026. \\par\n\\par\nProposals specific to the Notes have been received and evaluated by the procurement evaluation committee, City staff, and the City\\rquote s Co-Financial Advisors. As a result, Wells Fargo Securities ($200 million) and JPMorgan Securities LLC ($150 million) were deemed most favorable as bids for Dealer services. In an informal bid, U.S. Bank Trust Company, National Association was selected as commercial paper Issuing and Paying Agent.\\par\n\\par\nThis item authorizes the establishment of the General Obligation Extendable Commercial Paper Program. Pending approval of the ordinance, the effective date of the General Obligation Extendable Notes is November 10, 2026.\\par\n\\par\n\\ul\\b ESTIMATED SCHEDULE OF PROJECT\\par\n\\ulnone\\b0\\par\nCommittee on Finance\\tab\\tab\\tab September 2026\\par\nCity Council Ordinance Approval\\tab\\tab October 2026\\par\nEffective Date of Notes\\tab\\tab\\tab November 2026\\par\n\\par\n\\ul\\b PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)\\par\n\\ulnone\\b0\\par\nThe Finance Committee was briefed on the \\ldblquote FY 2026-27 Debt Program Overview and Planned Debt Transactions\\rdblquote  on September 22, 2026.  \\par\n\\par\n\\pard\\ltrpar\\cf3\\ul The City Council was briefed by memorandum regarding this matter on October 9, 2026. <https://dallascityhall.com/government/citymanager/Documents/FY26-27%20Memos/October%2014,%202026,%20City%20Council%20Agenda%20Item%2026-3045A.pdf>\\cf0\\ulnone  \\par\n\\pard\\ltrpar\\qj\\par\n\\ul\\b FISCAL INFORMATION\\par\n\\ulnone\\b0\\par\n\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx2610\\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx4858\\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx7106\\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\pard\\intbl\\ltrpar\\sl252\\slmult1 Fund\\cell FY 2027\\cell FY 2028\\cell Future Years\\cell\\row\n\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx2610\\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx4858\\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx7106\\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\intbl Debt Service Fund\\cell $732,000.00\\cell $41,000.00\\cell $82,000.00\\cell\\row\n\\pard\\ltrpar\\qj\\ul\\b\\par\n}\n"}