SUBJECT
title
An Ordinance of the City of Laredo, Texas, amending the City of Laredo’s FY 2025 annual budget by appropriating revenues and expenses in the amount of $2,294,495.00 in the Sewer System Fund 2020 Sewer 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
Public Hearing and Introductory Ordinance was approved by City Council on May 5, 2025.
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 3/17/2025 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 Friday, May 16, 2025.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Introduce this ordinance.
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Fiscal Impact
Fiscal Year: 2025
Budgeted Y/N?: N
Source of Funds: 2020 Sewer Revenue Bond
Account #: 559-4276-534-9818
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Original Budget Proposed Amendment Amended Budget
Revenues:
Interest Earnings
"559-4276-363-2001
S20RIN" $549,390 $2,294,495 $2,843,885
Expenses:
Arbitrage Rebate Liability
559-4276-534-9818 $0 $2,294,495 $2,294,495