Department: Management and Budget
Department Head/Elected Official: Daniel Ramos, Executive Director, Office of Management and Budget
Regular or Supplemental RCA: Regular RCA
Type of Request: Commercial Paper
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): N/A
MWDBE Contracted Goal (if applicable): N/A
MWDBE Current Participation (if applicable): N/A
Justification for 0% MWDBE Participation Goal: N/A - Goal not applicable to request
Request Summary (Agenda Caption):
title
Request for approval of an Extension of the Credit Agreement and Amendment to the Fee Letter between Harris County and Sumitomo Mitsui Banking Corporation relating to General Obligation Unlimited Tax Commercial Paper Notes, Series C.
end
Background and Discussion:
The credit agreement dated January 10, 2022 (as amended from time to time) between the County and Sumitomo Mitsui Banking Corporation (SMBC) in connection with the Commercial Paper Notes, Series C will expire on December 9, 2025. SMBC has offered a renewal proposal to the County at 28 bps for 5-years which seems a reasonable offer that locks the facility and favorable pricing for five years. The County has agreed to extend the agreement with SMBC.
Expected Impact:
Under the Extension of Agreement which will be effective December 10, 2025, facility fee will increase from 0.25% to 0.28%, an annual increase in fees of $118K.
Alternative Options:
Wait and replace the bank facility in December 2025 but the County will be facing uncertainty in pricing and legislation which could have adverse effects on banks’ ability to do municipal business in Texas that could result to a lesser number of banks that qualify to do business in Texas. There is also an issuance cost to replace a bank facility of approx. $250K in addition to CP fees.
Alignment with Goal(s):
_ Justice and Safety
_ Economic Opportunity
_ Housing
_ Public Health
_ Transportation
_ Flooding
_ Environment
X Governance and Customer Service
Prior Court Action (if any):
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Date |
Agenda Item # |
Action Taken |
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Location:
Address (if applicable): N/A
Precinct(s): Choose an item.
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Fiscal and Personnel Summary |
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Service Name |
Commercial Paper |
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Current Fiscal Year Cost |
Annual Fiscal Cost |
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Labor |
Non-Labor |
Total |
Recurring Expenses |
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Funding Sources |
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Existing Budget |
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Commercial Paper |
$ |
$ |
$ |
$ |
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Choose an item. |
$ |
$ |
$ |
$ |
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Choose an item. |
$ |
$ |
$ |
$ |
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Total Current Budget |
$ |
$ |
$ |
$ |
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Additional Budget Request (Requires Fiscal Review Request Form) |
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Choose an item. |
$ |
$ |
$ |
$ |
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Choose an item. |
$ |
$ |
$ |
$ |
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Choose an item. |
$ |
$ |
$ |
$ |
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Total Additional Budget Request |
$ |
$ |
$ |
$ |
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Total Funding Request |
$ |
$ |
$ |
$ |
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Personnel (Fill out section only if requesting new PCNs) |
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Current Position Count for Service |
- |
- |
- |
- |
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Additional Positions Request |
- |
- |
- |
- |
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Total Personnel |
- |
- |
- |
- |
Anticipated Court Date: July 25, 2024
Anticipated Implementation Date (if different from Court date): December 9, 2025
Emergency/Disaster Recovery Note: Not an emergency, disaster, or COVID-19 related item
Contact(s) name, title, department: Amy Perez, Deputy Executive Director, Office of Management and Budget
Attachments (if applicable): Extension of Credit Agreement