,From
Tannie Camarata, Cash & Debt Manager
Title
Water Wastewater Line of Credit Renewal
Presenter
Diana Ortiz, Chief Financial Officer
Recommend Action
Approve
Analysis
The City has a $2.5 million water wastewater line of credit with Bank of America. The line of credit expired on September 30, 2010 and needs to be renewed for another 3 year term. The line provides interim construction financing for water wastewater capital projects. Borrowings under the lines are eventually repaid with the proceeds of long term bond issues.
Currently the city has no debt outstanding under the water wastewater line of credit. The city's bond counsel Fulbright & Jaworski prepared the ordinance.
Financial Consideration
The terms of the line of credit include payment of interest expense on draws and a facility fee of 0.55% on undrawn balances. In fiscal 2010, the only expense was $9,973 for the fees on the undrawn balances.
Body
AN ORDINANCE authorizing the City of Grand Prairie, Texas, to enter into a Sixth Amendment to Waterworks/Wastewater Revenue Loan Agreement; providing for the payment of said agreement by the net revenues of the City’s waterworks and wastewater system; and resolving matters incident and relating to the execution and delivery of said agreement and providing an effective date.
WHEREAS, the provisions of Chapter 1371, Texas Government Code, as amended (the “Act”), authorize public entities such as the City of Grand Prairie, Texas (the “City”) to enter into, among other things, credit agreements to finance project costs of an eligible project, as defined in the Act;
WHEREAS, an eligible project includes the acquisition or construction of or an improvement, addition or extension to a public work;
WHEREAS, an eligible project also includes a project for which there exists authorized but unissued obligations approved by a majority of the voters of the City;
WHEREAS, in order to enable the City to finance project costs of an eligible project or...
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