Legislation Details

File #: 2026-O-116    Version: 1
Type: Third and final reading Status: Passed
File created: 4/27/2026 In control: City Council
On agenda: 6/1/2026 Final action: 6/1/2026
Title: An 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. PREVIOUS COUNCIL ACTION Public Hearing 2/17/2026 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. COMMITTEE RECOMMENDATION None. STAFF RECOMMENDATION
Attachments: 1. Yield Reduction Payment for Water Sewer Series 2015B, 2. Yield Reduction Payment 2020A Water Sewer New Series, 3. 2015 and 2020 Bonds

City of Laredo

Legislation Details

 

Meeting Date:                                                                                                                                                                         Final Readings

SUBJECT

title

An 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.

 

PREVIOUS COUNCIL ACTION

Public Hearing 2/17/2026

 

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.

 

COMMITTEE RECOMMENDATION

None.

 

STAFF RECOMMENDATION

recommendation

Introduce this ordinance.

end

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