Austin, TX Council to Approve $250M Airport Refinancing and Tax Measure Tomorrow

The Austin City Council is expected to approve a major refinancing package and finalize details for its November 4 tax rate election during its meeting on Thursday, October 9.

The city plans to issue up to $250 million in Airport System Revenue Refunding Bonds, Series 2025 (AMT), led by Siebert Williams Shank & Co., LLC as Senior Manager and Representative of the Underwriters. The deal, estimated at $225.6 million, will refinance outstanding 2014 Airport System Revenue Bonds with $244.5 million still due as of November 1, 2025. The goal is to lower borrowing costs, with the transaction requiring at least 4.25% in net present value savings to move forward.

A previous authorization for the same refinancing expired on September 6, 2025, after market conditions reduced potential savings. The new approval provides flexibility to move quickly if rates improve.

Authority to finalize bond pricing, maturities, and interest rates will be delegated to city officials—including the City Manager, Chief Financial Officer, Director of Financial Services, or City Treasurer—through April 9, 2026. The bonds are expected to be delivered to underwriters on or about December 4, 2025, with interest accruing from that date.

The bonds carry strong investment-grade ratings—A1 from Moody’s, A+ from S&P, and AA- from Kroll—and are backed by net revenues from Austin-Bergstrom International Airport (ABIA), not by city tax revenues. Estrada Hinojosa and HilltopSecurities will serve as Co-Managers on the transaction.

Frost Brown Todd LLC will serve as Underwriters’ Counsel. Bracewell LLP is acting as the City’s Bond Counsel, Orrick, Herrington & Sutcliffe LLP will serve as Disclosure Counsel, and PFM Financial Advisors LLC is the City’s Municipal Advisor.

Alongside the bond approval, the Council will also finalize procedural amendments related to the November 4, 2025, special municipal tax rate election. The ordinance updates include bilingual ballot text, polling locations, and election staffing lists.

To ensure the election runs smoothly, the Council will declare an emergency, allowing the ordinance to take effect immediately upon passage to protect public order, health, and safety.