Posting Language
Title
Approve an ordinance authorizing the issuance and sale by September 6, 2025 of City of Austin Airport System Revenue Refunding Bonds, Series 2025 (AMT), in a par amount not to exceed $250,000,000 in accordance with the parameters set out in the ordinance, authorizing related documents, and approving related fees. Funding: 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 Fiscal Year 2024-2025 Operating Budget of the Airport Revenue Bond Redemption Fund.
Body
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 Fiscal Year 2024-2025 Operating Budget of the Airport Revenue Bond Redemption Fund.
For More Information:
Belinda Weaver, Treasurer, 512-974-7885
Additional Backup Information:
The proposed 2025 Bonds are being issued to refund all or a portion of the outstanding $244,495,000 Airport System Revenue Bonds, Series 2014 (AMT) for debt service savings (the "2014 Bonds"). The 2014 Bonds are currently callable (able to be refinanced) and due to current favorable conditions in the municipal bond market, the City's financial advisor, PFM Financial Advisors LLC, has advised that refinancing, or "refunding" certain maturities from the 2014 Bonds may result in present value savings (lower debt service costs) that exceed the City's target guideline of 4.25% of the refunded bonds. Using interest rates as of February 3, 2025, the transaction is estimated to produce $12.9 million in present value savings (or, expressed as a percentage of the refunded bonds, a present value savings of 5.3%).
In order to provide the City with the flexibility to respond quickly to changing market conditions, the proposed ordinance delegates the authority to the City Manager, Chie...
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