Description
Title: Approve an ordinance authorizing the issuance and sale of tax-exempt City of Austin, Texas, Water and Wastewater System Revenue Refunding and Improvement Bonds, Series 2026, in a par amount not to exceed $575,000,000 to refinance up to $450,000,000 of short-term commercial paper into long term bonds, refinance up to $75,000,000 of outstanding Austin Water revenue bonds, and fund up to $50,000,000 of additional capital improvements related to the Walnut Creek Wastewater Treatment Plant, in accordance with the parameters set out in the ordinance, authorizing related documents, approving the pay
Summary
The City of Austin is considering an ordinance to issue up to $575 million in Water and Wastewater System Revenue Refunding and Improvement Bonds, Series 2026. This legislation aims to refinance approximately $450 million of short-term commercial paper into long-term bonds and refinance $75 million of outstanding revenue bonds, while also funding $50 million for capital improvements at the Walnut Creek Wastewater Treatment Plant. This refinancing is expected to yield significant debt service savings, estimated at $8.7 million, due to favorable market conditions. The bonds will be backed solely by the net revenues from Austin Water services, with no recourse to property taxes. The authority to finalize the sale is delegated to designated city officials, expiring on September 12, 2026