SUBJECT
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An Ordinance of the City of Laredo, Texas, authorizing either a new purchase agreement or an amendment to the existing note purchase agreement to effectuate an extension of the existing $50,000,000.00 commitment relating to Waterworks and Sewer System Revolving Notes, Series A.
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PREVIOUS COUNCIL ACTION
On 11/07/2022, through Ordinance 2022-O-201, City Council approved an agreement for establishing a commercial paper revolving note or line of credit program in the amount of $50,000,000.00 for Waterworks and Sewer System.
BACKGROUND
The original agreement was approved through Ordinance 2022-O-201 on 11/07/2022. Authorization is requested to enter into a renewal contract of this note purchase facility. This line of credit would be available through PNC Bank for the Waterworks and Sewer Systems in the amount of $50,000,000.00.
The line of credit has not been used since its inception. For this new agreement, the Borrower shall pay an unutilized fee to the Bank quarterly in arrears on the last day of each calendar quarter in an amount equal to the product of (i) 0.20% per annum until 50% usage, then 0.15% and (ii) the difference between the amount of the Credit Facility and the amount advanced by the Bank for each day in the term of the Credit Facility. The Unutilized Fee shall be calculated based upon a year of 360 days and the actual number of days elapsed.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Approve and adopt this First and Final Reading of Ordinance.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: N
Source of Funds: Short Term Notes Proceeds
Account #: Various
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Budget for fiscal year 2026 will be amended as necessary to appropriate the short-term loan proceeds. Principal and interest payments will be determined at the time of settlement.