SUBJECT: An Ordinance supplementing and amending Ordinance No. 2025-0861; providing for the issuance of the City of Houston, Texas, Combined Utility System Revenue Bonds, Series 2025; making other provisions regarding the designation of such bonds and any related documents and matters incident thereto; and declaring an emergency.
RECOMMENDATION: An Ordinance supplementing and amending Ordinance No. 2025-0861; providing for the issuance of the City of Houston, Texas, Combined Utility System Revenue Bonds, Series 2025; making other provisions regarding the designation of such bonds and any related documents and matters incident thereto; and declaring an emergency.
SPECIFIC EXPLANATION:
The Texas Water Development Board (the “TWDB”) administers a program, the State Water Implementation Fund of Texas (“SWIFT”), that provides below market, low-interest rate loans to provide financing for eligible political subdivisions. The City of Houston (“City”) applied to the TWDB for loans of $966,090,000.00 to be issued over a multi-year period, which application was approved by TWDB.
On October 15, 2025, City Council approved Ordinance No. 2025-0861, which authorized the City to issue the CUS Series 2025 Bonds (“Series 2025 Bonds”) in the amount of $350 million to fund approved projects in the City’s adopted Capital Improvement Plan and pay costs of issuance.
This proposed ordinance will amend Ordinance No. 2025-0861 to make one change by replacing the bond series designation name “Combined Utility System First Lien Revenue Bonds, Series 2025.” with “Combined Utility System Revenue Bonds, Series 2025.” TWDB has notified the City that this change is a requirement for the City to issue the Series 2025 Bonds.
The Series 2025 bonds will be privately placed with the TWDB, which eliminates the need for underwriters. The closing is scheduled for December 9, 2025.
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Randall V. Macchi, JD
Director, Houston Public Works