SUBJECT
title
Final Reading of Ordinance of the City of Laredo, Texas, amending the City of Laredo’s FY 2026 annual budget by appropriating revenues and expenditures in the estimated amount of $202,507.00 in the Downtown TIRZ #1 2021B Certificate of Obligation Bond. The interest earnings being appropriated are for the arbitrage liability payment due to the U.S. Treasury. Funding is available in the Downtown TIRZ#1 2021 Certificate of Obligation Bond.
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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 the fixed rate arbitrage bond yield through the 7/20/2026 computation date. After 5-year installment rebate calculations were done, this bond had a positive liability as of 07/20/2026. Therefore, since the liability is positive at their 5-year report, it must be paid to the US Treasury no later than Friday, September 18, 2026.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
That the City Council approve the Final Reading of the Ordinance.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: N
Source of Funds: 2021B Certificate of Obligation
Account #: 269
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
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Original |
Proposed |
Amended |
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Budget |
Amendment |
Budget |
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Revenues: |
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Interest Earnings 269-7530-363-1000 21TZIN |
$71,285 |
$202,507 |
$273,792 |
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Expenditures: |
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Arbitrage Rebate Liability 269-7530-534-9818 |
$ 6,275 |
$202,507 |
$208,782 |
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