City of San Antonio - File #: 17-1528

• File #: 17-1528
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 2/23/2017
• Posting Language: An Ordinance authorizing the issuance of one or more series of not to exceed $580,100,000 “City of San Antonio, Texas Electric and Gas Systems Revenue Bonds”; providing the terms, conditions, and specifications for such Bonds, including the approval and distribution of one or more official statements pertaining thereto; making provisions for the payment and security thereof on a parity with certain currently outstanding obligations; stipulating the terms and conditions for the issuance of additional revenue bonds on a parity therewith; authorizing the execution of one or more paying agent/registrar agreements, escrow agreements, and bond purchase agreements; complying with the requirements of the Depository Trust Company; delegating the authority to certain members of the City Public Service Board Staff to execute certain documents relating to the sale of the Bonds; enacting other provisions incident and related to the subject and purpose of this Ordinance; and providing an effective d...

Date	Ver.	Action By	Action	Result
2/23/2017	1	City Council A Session	adopted	Pass

DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: City Wide


SUBJECT: CPS Energy Financing Transactions


SUMMARY:

CPS Energy requests approval by the City Council (the "Council") of the City of San Antonio, Texas (the "City") of the following:

A. An Ordinance authorizing the issuance and sale of one or more series of new money and / or refunding obligations up to $580.1 million designated as "City of San Antonio, Texas Electric and Gas Systems Revenue Bonds", and as further designated by purpose, series, lien priority, federal income tax treatment, and method of calculating interest rate (whether fixed or variable).

The Ordinance authorizes issuance of each series of Bonds (within parameters set by the Council), and includes a delegation of authority by the Council to CPS Energy's Designated Financial Officers, defined in the Ordinance to include the CEO or any Treasurer, to be exercised by any of such parties, to issue and set pricing of each series of Bonds (within the parameters set by the Council), as permitted by Chapters 1207 and 1371, as amended, Texas Government Code, respectively, and to undertake necessary matters relating to the foregoing and authorizes the approval of related financial agreements.

BACKGROUND INFORMATION:

CPS Energy issues revenue debt periodically to finance new capital construction and capital improvement projects and / or to refinance, defease, or restructure outstanding revenue debt. CPS Energy has a Debt Management Plan (the "Plan") providing guidelines under which financing and debt transactions are managed. The Plan focuses on providing financial tools to lower debt service cost on outstanding debt, utilizing alternative financing methods to capitalize on present market conditions, outlining an optimal capital structure, and maintaining favorable financial ratios. The anticipated transactions are consistent with the Plan, and its ongoing review and use of financing, refunding, and cash def...