Posting Language
Title
Approve an ordinance authorizing the issuance and sale of City of Austin, Texas Electric Utility System Revenue Refunding and/or Improvement Bonds, in one or more series with an aggregate par amount not to exceed $695,000,000, in fixed rate and/or variable rate modes, in accordance with the parameters set out in the ordinance; authorizing related documents; approving the payment of costs of issuance; and providing that the issuance and sale be accomplished by April 22, 2027. Funding: Fiscal Year 2026-2027 debt service requirements and estimated annual administration fees for the paying agent/registrar for the proposed bond sale are included in the Fiscal Year 2026-2027 Operating Budget of the Combined Utility Bond Redemption Fund.
Body
Lead Department
Austin Financial Services
Fiscal Note
Fiscal Year 2026-2027 debt service requirements and estimated annual administration fees for the paying agent/registrar for the proposed bond sale are included in the Fiscal Year 2026-2027 Operating Budget of the Combined Utility Bond Redemption Fund.
For More Information:
Belinda Weaver, Treasurer, 512-974-7885
Additional Backup Information:
Transaction Overview. The Bonds are contemplated to be issued in three separate series (2026A tax-exempt fixed rate bonds, 2026B taxable fixed rate bonds, and 2026C tax-exempt variable rate bonds) for the following purposes. The total par amount being authorized in all series is an amount not to exceed $695,000,000.
The 2026A Bonds will be issued as tax-exempt fixed-rate debt. The 2026B Bonds will be issued as taxable debt because they are refinancing outstanding taxable commercial paper notes. The 2026C Bonds will be issued as tax-exempt adjustable rate soft put bonds given recent increases to interest rates. A soft put bond enables Austin Energy to borrow a portion of long-term debt at short-term rates, since short-term rates are typically lower than long-term rates; at the put date, the bonds will be rem...
Click here for full text