Posting Language
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 2024, in a par amount not to exceed $500,000,000, in accordance with the parameters set out in the ordinance; authorizing related documents; approving the payments of the costs of issuance; and providing that the issuance and sale be accomplished by November 1, 2024.
De
Lead Department
Financial Services Department.
Fiscal Note
The Fiscal Year 2025 debt service requirements and estimated annual administration fees for the paying agent/registrar for the proposed bond sale are included in the 2024-25 Proposed Operating Budget of the Combined Utility Bond Redemption Fund.
For More Information:
Belinda Weaver, Treasurer, City of Austin, 512-974-7885.
Additional Backup Information:
The Water and Wastewater System Revenue Refunding and Improvement Bonds, Series 2024 (Series 2024 Bonds) are being issued to refinance $200 million of short-term commercial paper previously issued by Austin Water to fund capital improvements, refinance up to $250 million of outstanding Austin Water revenue bonds for debt service savings, and fund up to $50 million of additional capital improvements for Austin Water.
Austin Water uses short term debt, called "commercial paper," to fund many of its capital expenditures. 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 and that are backed solely by the revenue of the utility, rather than property taxes. This transaction will allow Austin Water to take advantage of currently favorable market conditions and restore the available capacity under its tax-exempt commercial paper program for future borrowing needs by refinancing up to $200,000,000 of tax-exempt commercial paper into long-term bonds. Additionally, due to current favorable...
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