Posting Language
Title
Approve an ordinance authorizing the issuance and sale of City of Austin, Texas, Electric Utility Revenue Refunding Bonds, Taxable Series 2019C, in a par amount not to exceed $120,000,000, in accordance with the parameters set out in the ordinance; authorizing related documents; approving the payment of costs of issuance; and providing that the issuance and sale be accomplished by February 28, 2020.
De
Lead Department
Treasury Office
Fiscal Note
This item has no fiscal impact.
Prior Council Action:
For More Information:
Belinda Weaver, Interim Treasurer (512) 974-7885
Council Committee, Boards and Commission Action:
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Additional Backup Information:
Austin Energy uses short term debt, called "commercial paper," to fund many of its capital projects. The commercial paper is periodically paid off using bonds that refinance the commercial paper into long-term debt to better match the useful life of the capital assets being financed; the issued bonds are backed solely by the net revenue of the utility, rather than property taxes. This transaction will allow Austin Energy to take advantage of currently favorable market conditions and restore the available capacity under its taxable commercial paper program for future borrowing needs by refunding up to $75,000,000 of taxable commercial paper. An additional $45,000,000 of bonds will issued to fund the construction of a district chiller plant for an Austin Community College campus. Bond proceeds will also be used to pay the cost of issuing the bonds.
In order to provide the City with the flexibility to respond quickly to changing market conditions, the proposed ordinance delegates the authority to the City Manager or Chief Financial Officer (the "Pricing Officer") to complete the sale of the bond transaction in accordance with the parameters in the ordinance. In addition, the authority of the Pricing Officer to exercise the authority delegated by Council und...
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