Posting Language
Title
Approve an ordinance amending the Fiscal Year 2023-2024 Austin Water Operating Budget (Ordinance No. 20230816-008), for the purpose of defeasing and redeeming outstanding bonds by increasing transfers in by $1,000,000 and increasing transfers out by $16,000,000; and amending the Fiscal Year 2023-2024 Combined Utility Revenue Bond Redemption Fund (Ordinance No. 20230816-008) to increase transfers in by a net amount of $16,750,000 and increase expenditures by a net amount of $16,750,000. Related to Item #18.
De
Lead Department
Austin Water.
Fiscal Note
Funding is available in the ending balances of the Fiscal Year 2023-2024 Austin Water operating funds. Reduction of these ending balances will maintain Austin Water's compliance with relevant City financial policies. Fiscal notes are attached.
Prior Council Action:
August 16, 2023 - Council approved Ordinance No. 20230816-008 adopting the Operating Budget for the Fiscal Year 2023-2024.
For More Information:
Blanca Madriz, Program Coordinator, Austin Water, blanca.madriz@austintexas.gov, 512-972-0115.
Council Committee, Boards and Commission Action:
November 8, 2023 - the Water and Wastewater Commission recommended approval of this budget amendment ordinance.
Additional Backup Information:
This budget amendment will transfer the funds into the correct account to make them available for defeasance transactions. It is related to the defeasance item that would authorize Austin Water to pay off certain maturities of the City's outstanding Water and Wastewater System Revenue Refunding Bonds. A defeasance is a method of using available cash to pay off outstanding debt. The cash is placed in an escrow account held by a trustee to make principal and interest payments on the required payment date for the bonds being defeased until redemption or maturity. Once the defeasance is funded, the obligations payable from the escrow are no longer secured by or payable from the revenues initially pledged to...
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