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.
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