Posting Language
Title
Approve a resolution declaring the City's official intent to reimburse itself from the proceeds of tax-exempt obligations in an aggregate maximum principal amount of $876,000,000 for acquisition and construction of electric utility capital improvement projects paid in Fiscal Year 2026-2027. Funding: Available in Austin Energy’s Capital Budget. A fiscal note is attached.
De
Lead Department
Austin Energy.
Fiscal Note
Issuance of $876,000,000 in tax-exempt obligations to be issued through October 2027. A fiscal note is attached.
Prior Council Action:
August 12, 2026 - Council approved an ordinance adopting the City’s budget for Fiscal Year (FY) 2026-2027, including Austin Energy’s five-year capital spending plan for FY2027 - FY2031.
For More Information:
Amy Everhart, Director, Local Government Issues, 512-322-6087; John Davis, Director, AE Budget, 512-505-3724
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 no later than 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 the Council’s intent to authorize the reimbursement for costs associated with acquisition and construction of electric utility capital improvements from the following funds.
|
FUND |
FUND DESCRIPTION |
|
3120 |
E-Alternate Energy Capital |
|
3220 |
E-Power Production Capital |
|
3230 |
E-Transmission Capital |
|
3240 |
E-Distribution Substations Capital |
|
3250 |
E-Distribution Capital |
|
3310 |
E-Support Services Capital |