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Trustees increase commercial paper capacity to $500M; authorize RFP for tax-exempt bank note program
Summary
Following a presentation by PFM, trustees approved raising the trust’s commercial paper capacity from $350 million to $500 million and authorized staff to issue an RFP for a tax-exempt bank note program to support the trust’s multi-year capital plan.
The Oklahoma City Water Utilities Trust on Feb. 11 voted to increase commercial paper capacity from $350 million to $500 million and authorized staff to issue a request for proposals for a tax-exempt bank note program.
Dennis Whaley of PFM, the trust’s financial adviser, presented both items. Whaley said the two products — commercial paper (CP) and a bank note program — would provide both appropriation capacity and spending capacity to help the trust manage its large capital program over the next five years.
“We talked about certain instruments that could be beneficial to the trust in moving through their very large capital plan over the next 5 years,” Whaley said. He recommended increasing the CP program from $350,000,000 to $500,000,000 and pursuing a tax-exempt bank note program via RFP. Whaley said the CP increase could be completed by midsummer, and the bank note program could follow in late summer or fall if market interest is found.
Trustees moved and voted to approve a resolution increasing commercial paper capacity and a separate resolution authorizing issuance of an RFP to solicit interest for a tax-exempt bank note program. Both motions passed; the transcript records the items as passing but does not include a roll-call vote tally.
