By Matt Ward —
City of Fredericksburg officials declined comment about the status of a pending lawsuit which could overturn portions of the recent charter amendment.
The city council met with attorneys regarding the litigation during an executive session prior to Monday’s regular meeting. No action was taken following the session.
After announcing the suit in late June, the initial two-week projected time frame to file in the Travis County District Court passed, though lawyers at Norton, Rose and Fulbright continue to work on briefs in the case.
Passed by voters in a slim 581-556 decision in May, the amendment regulates the ability of the city to transfer money from enterprise funds and requires approval by voters prior to the transfer.
The expected suit will seek a declaratory judgment that the recent charter amendment is not enforceable so long as the city’s currently-issued debt instrument bonds remain outstanding.
Filing a declaratory judgment suit will allow the city to receive an expedited decision, expected within a few months rather than several years.
At issue is the status of the city’s $6.5-million water revenue bond package, approved by the city council last summer, which is funding improvements to water facilities and the waste water treatment plant and has its final maturity in 2033.
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