Posting Language
Title
Approve a resolution declaring the City's official intent to reimburse itself from proceeds of tax-exempt obligations in an aggregate maximum principal amount of $525,000,000 for expenditures related to the Fiscal Year 2026-2027 acquisition and construction of water and wastewater system capital improvement projects. Funding: Available in Austin Water’s Capital Budget.
De
Lead Department
Austin Water.
Fiscal Note
Issuance of $525,000,000 in tax-exempt obligations to be issued through October 2027. A fiscal note is attached.
Prior Council Action:
August 28, 2025 - Council approved Resolution No. 20250828-003 declaring the City's official intent to reimburse itself from proceeds of tax-exempt obligations in the aggregate principal amount of $260,000,000 for acquisition and construction costs related to Fiscal Year 2025-2026 Austin Water capital improvement projects.
August 29, 2024 - Council approved Resolution No. 20240829-005 declaring the City's official intent to reimburse itself from proceeds of tax-exempt debt for costs related to acquisition and construction of Fiscal Year 2023-2024 Austin Water capital improvement projects in an aggregate amount of $280,000,000.
For More Information:
Vicky Addie, Program Coordinator, 512-972-0332 or Vicky.Addie@austintexas.gov.
Additional Backup Information:
For the City to spend money today and reimburse itself from the issuance of debt obligations in the future, a reimbursement resolution is required by state and federal law. The resolution must contain certain information to protect the tax-exempt status of the future issuance. Failure to adopt a qualified declaration of official intent will prohibit the City from reimbursing the cost with the proceeds of tax-exempt obligations. Reimbursement debt generally must be issued 18 months after the later of the date the expenditure was made, or the date that the project, with respect to which the expenditure was made, is placed in service.
This action expresses Council’s intent to authorize the reimbursement for costs associated with acquisition and construction of water and wastewater system capital improvements from the following funds:
WATER SYSTEM
|
FUND |
DESCRIPTION |
|
3960 |
Improvements to and expansions of the waterworks system and facilities. |
|
4250 |
Texas Water Development Board loan reimbursements for State Water Implementation Fund of Texas Program. |
|
4270 |
Texas Water Development Board loan reimbursements for State Revolving Fund Program. |
WASTEWATER SYSTEM
|
FUND DESCRIPTION |
|
|
4530 |
Improvements to and expansions of wastewater system and facilities. |
|
4570 |
Improvements to and expansions of the sanitary sewer system and wastewater facilities. |
|
4600 |
Texas Water Development Board loan reimbursements for State Water Implementation Fund of Texas Program. |
|
4620 |
Texas Water Development Board loan reimbursements for State Revolving Fund Program. |
|
4630 |
Texas Water Development Board loan reimbursements for Flood Infrastructure Fund Program. |
|
4640 |
United States Environmental Protection Agency loan reimbursements for Water Infrastructure Finance and Innovation Act. |
|
4680 |
Vehicle acquisitions. |
RECLAIMED WATER SYSTEM
|
FUND |
DESCRIPTION |
|
3990 |
Improvements to and expansions of the reclaimed water system. |
|
4020 |
Texas Water Development Board loan reimbursements for State Water Implementation Fund of Texas Program. |
|
4030 |
Texas Water Development Board loan reimbursements for State Revolving Fund Program. |