SUBJECT
title
Public Hearing and Introductory Ordinance of the City of Laredo, Texas, amending the City of Laredo’s FY 2026 annual budget by appropriating revenues and expenses in the amount of $2,024,582.00 in the Sewer System Fund - 2015B and 2020A Revenue Bond and Waterworks Fund - 2020A Revenue Bond. The interest earnings being appropriated are for the arbitrage liability payment due to the US Treasury.
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PREVIOUS COUNCIL ACTION
N/A
BACKGROUND
Interest earnings are being appropriated in order to refund the US Treasury for the arbitrage rebate liability on bonds that earned more than what the fixed rate arbitrage bond yield is through the 11/30/2025 computation date. After 5-year installment rebate calculations were done this bond had a positive liability. Therefore, since the liability is positive at their 5-year report it must be paid to the US Treasury no later than Thursday, January 29, 2026.
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating:
Supporting goal(s)/policy(ies):
Summary of alignment:
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
Conduct public hearing and introduce this ordinance.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: Y
Source of Funds: 2015B Sewer Revenue Bond &
2020A Water and Sewer Revenue Bond
Account #: 557 & 559
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Budget Proposed Amendment Amended Budget
Revenues:
Interest Earnings
559-4292-363-2001 S15BIN 162,403 18,565 180,968
559-9877-363-2001 S20RAI 373,150 1,019,643 1,392,793
557-9877-363-2001 W20RIN 322,700 986,374 1,309,074
Expenditures
Arbitrage Rebate
559-4292-534-9818 SW18CS - 18,565 18,565
559-9877-534-9818 SW18CS - 1,019,643 1,019,643
557-9877-534-9818 WP18CS - 986,374 986,374