Posting Language
Title
Approve a resolution expressing the City's consent, as required by Internal Revenue Code Section 147(f), to the Public Finance Authority's issuance of the Series 2024B Tax-Exempt Bonds, in exchange for the Series 2024B Taxable Bonds previously issued for the purpose of making a loan to Austin FBO, LLC, in an amount not to exceed $53,410,000 to provide financing of the cost of the acquisition, construction, and/or equipping of certain facilities at Austin-Bergstrom International Airport and fund related costs. Funding: This item has no fiscal impact.
De
Lead Department
Aviation
Fiscal Note
This item has no fiscal impact.
For More Information:
Inquiries should be directed to Tracy Thompson, Airport Chief Officer - Business & External Affairs at
tracy.thompson@flyaustin.com, 512-530-5023.
Council Committee, Boards and Commission Action:
May 14, 2025 - Recommended by the Airport Advisory Commission on a 9-0-0-2 vote.
Additional Backup Information:
On December 5, 2024, the Public Finance Authority issued the Series 2024B Bonds bearing interest includable in the gross income, for federal income tax purposes, of the holders thereof (the "Series 2024B Taxable Bonds"). In accordance with applicable provisions of the indenture pursuant to which the Series 2024B Taxable Bonds were issued, the interest on the Series 2024B Taxable Bonds may be converted to tax-exempt interest through an exchange of such bonds for bonds bearing interest not includable in gross income, for federal income tax purposes, of such holders (the "Series 2024B Tax-Exempt Bonds"), provided certain conditions are satisfied.
The Public Finance Authority intends to issue the Series 2024B Tax-Exempt Bonds in an aggregate principal amount not to exceed $53,410,000. The bond proceeds will be used to (a) provide financing of the cost of the acquisition, construction and/or equipping of certain facilities at Austin-Bergstrom International Airport (AUS), (b) pay capitalized inter...
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