About $2.9 million in general obligation utility revenue bonds will replenish the city's pockets as it pays for state-ordered sanitary sewer in newly annexed portions of the northeast part of the city.
According to Tom Dankert, the city's director of administration, the city is paying the cost of installing the sewer itself, but the bonds will replenish the city coffers.
The special assessments the city passed in spring will pay for 100 percent of the cost of the bonds.
Residents of the newly annexed sections of northeast Austin will pay the assessments, which are based on the type of sewer system they are receiving and on how many Residential Equivalent Units their property has.
The decision to sell the bonds passed the Austin City Council 7-0 with no discussion.
ADVERTISEMENT
The bonds could be bid as traditional, tax-exempt bonds or as Build America Bonds, which are permitted under the federal American Recovery and Reinvestment Act. Build America Bonds help subsidize the city's efforts to keep its borrowing costs low. The program was established with ARRA to help stimulate more investment in capital projects.
