🟪 Austin is now the only major Texas city with perfect credit ratings. (Austin American-Statesman)

🟪 As state takeover pressure mounts, Austin ISD will close another middle school imminently (KUT)

🟪 After 20 years, Austin to begin construction on former Home Depot site off St. Johns (KUT)

🟪 Longtime economic development leader Dave Porter announces retirement in Williamson County (Austin Business Journal)

🟪 ERCOT prepares for record demand during Texas heat wave (Houston Public Media)

🟪 Elon Musk pumps nearly $5M into Texas GOP, Abbott campaign (Austin American-Statesman)

🟪 Halliburton lands contract in Iraq as companies seek solutions to avoid Strait of Hormuz (Houston Business Journal)

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🏛️ COUNCIL MEETINGS:

🏛️ MEMO: Fiscal Year 2026-2027 Budget Adoption Timeline

🏛️ VIDEO: Budget Meeting of the Austin City Council (7.16.26)

🏛️ VIDEO: Austin City Council Work Session (7.21.26)

🏛️ VIDEO:Austin City Council Budget Work Session (7.22.26)

💰 Review the Fiscal Year 2026-27 budget documents here

ULI Austin held its July Breakfast Wednesday morning at the Austin Central Library, gathering real estate and public sector leaders to assess the state of downtown. Downtown Austin Alliance President and CEO Davon Barbour moderated the conversation.

Representing the city's perspective, here are highlights from panelist Max Lars, Mayor Kirk Watson's senior policy advisor.

What's next: Lars becomes Watson's chief of staff August 1.

✅ Austin is now the only major Texas city with perfect credit ratings. (Austin American-Statesman)

Austin has become the only major Texas city to hold the highest possible credit rating from all three leading rating agencies, a distinction that could help the city secure lower borrowing costs as it prepares to finance several major infrastructure projects.

Moody’s Ratings upgraded Austin’s overall credit rating and general obligation debt rating from Aa1 to Aaa, according to a memo sent Friday to the mayor and City Council. Austin already held top AAA ratings from S&P Global Ratings and Fitch Ratings.

Credit ratings measure a borrower’s ability to repay its debts. Stronger ratings generally reduce risk for investors and can allow governments to borrow money at lower interest rates.

Moody’s raised Austin’s issuer rating from Aa1, its second-highest grade, to Aaa. The upgrade means Austin now holds the highest possible rating from Moody’s, S&P Global Ratings and Fitch Ratings. 

The agency also upgraded Austin’s general obligation debt from Aa1 to Aaa, along with other upgrades to ratings on debt supported by hotel occupancy taxes, the city’s water and wastewater system and annual city appropriations.

Austin’s general obligation debt ratings, which are indicative of overall credit ratings, exceed those of Texas’ other largest cities… 🟪 (READ MORE)

✅ As state takeover pressure mounts, Austin ISD will close another middle school imminently (KUT)

The Austin school district is preparing to immediately close Paredes Middle School weeks before the start of the 2026-27 school year after district leaders concluded the campus is expected to receive a fourth consecutive failing accountability rating from the state for the 2025-26 school year, employee union Education Austin president Ken Zarifis confirmed Wednesday.

The decision comes just months after Superintendent Matias Segura pledged to avoid additional school closures.

Zarifis said the union, as well as school staff and community members, were notified by Austin ISD midday Wednesday about the closure, which he said would be effective before the start of the school year. Education Austin announced the upcoming closure in a statement Wednesday afternoon. School closures typically require a board vote. Such a meeting had yet to be posted at the time of publication. Austin ISD did not immediately respond to requests for comment.

The closures come at a pivotal moment for Austin ISD as it awaits state accountability ratings expected in mid-August. Those ratings for Dobie, Webb and Burnet middle schools could determine the district’s fate. If any of those schools receive a fifth failing accountability rating, Education Commissioner Mike Morath could either order the campus closed or replace Austin ISD’s elected board with an appointed board of managers… 🟪 (READ MORE)

✅ After 20 years, Austin to begin construction on former Home Depot site off St. Johns (KUT)

Two decades after purchasing a 19-acre property at I-35 and St. Johns Avenue, the city of Austin plans to begin construction on the site this week.

The two-year buildout process will be guided by a 2020 vision plan shaped by community input. The mixed-use community will include more than 500 housing units, retail space and an expanded park with a splash pad. In the meantime, the St. John Pocket Park has been closed during construction.

Christine Freundl, who is overseeing the redevelopment for the city, said 70% of the apartments will be set aside for families making between 50% and 80% of the area's median family income. For a family of four, that ranges from $67,200 to $106,800, according to city data.

The development will also include 15,000 square feet of commercial and retail space with about 5,000 square feet marked at below-market rental rates… 🟪 (READ MORE)

✅ Longtime economic development leader Dave Porter announces retirement in Williamson County (Austin Business Journal)

Dave Porter, who returned to Central Texas in 2022 to become the first executive director of the Williamson County Economic Development Partnership, is retiring in December after more than 40 years in economic development. The search for his replacement is underway.

The Kansas native had spent roughly a decade working for the Greater Austin Chamber of Commerce and helped launch Opportunity Austin before leaving that role for a similar one in Orlando in 2017. He returned to lead Wilco EDP, a consortium of nine governmental entities in Williamson County that promotes economic development in the county north of Austin. His tenure has been highlighted by helping land a number of new companies and industries, with a focus on Asian companies.

"My role with the Wilco EDP has been one of the most rewarding experiences of my 40-plus years in economic development," Porter said in a July 22 news release. "The collaboration between the nine partner cities and the County has led Williamson County to be one of the top destinations for global advanced manufacturing companies. The future is incredibly bright for Williamson County."… 🟪 (READ MORE)

✅ Kyle council sets scope of forensic audit to review potential fraud (Community Impact)

On June 2, the Kyle City Council approved a request for an independent third-party forensic audit to evaluate potential financial misconduct that has occurred in recent years, according to previous Community Impact reporting.

The council determined the scope of the forensic audit during a July 22 meeting, including which specific allegations of misconduct will be evaluated and the sequence in which the allegations are reviewed.

In a forensic audit, one or more third-party firms will examine financial records in an effort to find evidence of fraud, embezzlement, theft, corruption or other serious financial misconduct, said Interim City Manager Perwez Moheet… 🟪 (READ MORE)

✅ ERCOT prepares for record demand during Texas heat wave (Houston Public Media)

Texas power grid operators are preparing for record-breaking demand this week, due to a heat wave that is driving up energy use in the Houston area and across the state. The Electric Reliability Council of Texas (ERCOT) said Wednesday the grid is currently operating under normal conditions.

"ERCOT continues a reliability-first approach to grid operations and will continue to operate the grid conservatively, bringing generating resources online early to mitigate sudden changes in generation or demand," spokesperson Trudi Webster said in a statement.

In the Houston region, an extreme heat warning was issued by the National Weather Service for Wednesday as triple-digit temperatures were forecasted along with heat indices, or “feels-like” temperatures, in the 110-115 range. There was a heat advisory on Tuesday. ERCOT's record demand of 85,508 megawatts occurred on Aug. 10, 2023. The council said the state may have set a new record on Tuesday, surpassing that usage by about 2,000 MW.

However, ERCOT cautioned the numbers from this week were still preliminary, and have yet to be confirmed. In 2023, ERCOT narrowly avoided a power grid failure and rolling blackouts during one of the state's hottest summers on record. However, University of Houston Energy Fellow Ed Hirs said Texans don't have to worry about grid failures this summer, due to a growth in renewable energy. "We have more than enough capacity for wind, solar (and) batteries pitching in to meet the ever-rising demand on the Texas grid," he said… 🟪 (READ MORE)

✅ Elon Musk pumps nearly $5M into Texas GOP, Abbott campaign (Austin American-Statesman)

Texas Republicans and their causes have received nearly $5 million from the world’s richest man this year. Elon Musk, the CEO of Tesla Inc. and SpaceX, has given $500,000 to Texans for Greg Abbott in the six months through June, according to the latest campaign finance reports filed with the state. Other high-profile donations include $250,000 to Rep. Dustin Burrows, the speaker of the Texas House, and the Elon Musk Revocable Trust gave another $500,000 to Texans for Dan Patrick, the campaign committee of the lieutenant governor.

At the start of the year, he gave $500,000 to Patrick’s Texas Senate Leadership Fund ahead of a Senate special election in North Texas. The Musk trust’s other political contributions this year include $2 million to the Texans for Lawsuit Reform PAC and $1 million to the Judicial Fairness PAC.

Texans for Lawsuit Reform, which backs tort reform, has overwhelmingly supported Republican candidates for office. From 2025 through April, it is also the political action committee that has spent the most on state elections. The Judicial Fairness PAC has supported Republican judicial candidates across Texas. Musk is making donations outside of Texas, too. He gave $5 million to a super PAC supporting Republican billionaire Vivek Ramaswamy’s campaign for Ohio governor.

He also sent $10 million to both the Senate Leadership Fund and Congressional Leadership Fund, which support Republicans. He contributed less than $500,000 in the second quarter to his own America PAC, which backed President Donald Trump’s re-election. In all, his donations for the midterm election cycle are at least $90 million. From September 2024 to April, he had given $5.5 million to political action committees in Texas.

The year 2024 also saw his funding of a group that unsuccessfully tried to unseat Travis County District Attorney José Garza in the Democratic primary. Until increasing sharply in 2024, his donations to Texas politicians totaled $69,500, almost all of which was given in 2014. Musk’s personal net worth is tied largely to his 42% stake in SpaceX and roughly 15% ownership stake in Tesla. Much of his fortune is on paper, tied to the fortunes of his companies, and he’s said less than 0.1% of it is in cash.

He briefly became the world’s first trillionaire after SpaceX went public in June. The company’s shares shot as high as $176 on their first day of trading, pushing Musk’s personal wealth above the $1 trillion mark and the company’s market value to $2.2 trillion. In recent days, Musk’s net worth has dropped to less than $800 billion as investors have driven down SpaceX shares after it aborted the 13th launch of its Starship rocket last week for engine trouble… 🟪 (READ MORE)

✅ DART votes to hire former Jacksonville transit leader as new CEO (KERA)

Dallas Area Rapid Transit officials have selected Jacksonville's transit leader as the agency's new president and CEO, despite concerns over a history of spending controversies. DART’s board of directors voted 9-4 Tuesday to offer a contract to Nathaniel Ford. It comes after the board vetted three finalists in a process that involved rigorous public input. "DART conducted the longest, most transparent president and CEO search process in the history of this agency," said board chair Randall Bryant. "We found one of the most talented, sought-out executives."

Ford previously served 13 years as the CEO for the Jacksonville Transit Authority in Florida. He’s been credited with securing $400 million in federal funds for the agency and expanding a local gas tax to invest in transit infrastructure. His tenure was also marked by reports of excessive travel and spending. Action News JAX, a Fox station in Jacksonville, reported that Ford, who was paid more than $625,000 a year, spent tens of thousands of dollars on travel, taking 140 trips over the course of several years. He also spent more than $40,000 on travel in 2023, including a 14-day trip to Spain and a five-day visit to Hawaii, the station reported. The station also reported in 2024 that the transit agency’s card was used to purchase massages, resort hotel bookings and photo booths. Nathaniel Ford has faced public scrutiny for his spending habits at the Jacksonville Transportation Authority he led for 13 years… 🟪 (READ MORE)

✅ Laredo's future rides on Trump’s next trade moves (New York Times)

Tractor-trailers rumble through the gates of the World Trade Bridge, punctuated by the squeals of air brakes and growls of engines. South of the border, a line of trucks stretches back into Mexico, extending for more than a mile at the busiest times. President Trump’s tariffs have reshaped America’s trading relationship with the world. Imports from countries like China have steadily fallen as tariffs went into effect. As a result, manufacturers have sought low-cost factories closer to home, prompting a boom in trade between the United States and Mexico. Laredo, Texas, has been a winner from the shift.

A border city on the Rio Grande, it directly connects the factories surrounding Monterrey, Mexico, about 150 miles away, with Interstate 35, a central artery in the United States, and other highways that carry Mexican products throughout the country. Roughly 40 percent of U.S.-Mexico trade passes through Laredo.

That trade is now in question as Mr. Trump demands changes to the North American trade agreement that has stitched together the economies of Mexico, Canada and the United States for more than three decades. In negotiations in Mexico City this week, U.S. officials will push for significant revisions to the trade deal the president signed during his first term — the United States Mexico Canada Agreement — which replaced NAFTA. Under those deals, goods have been allowed to move between the countries tariff free, as long as they follow the rules of the pact. Mr. Trump has already taken a highly disruptive approach to North American trade. He has threatened to scrap U.S.M.C.A. altogether unless the United States gets a better deal, a disastrous scenario for the businesses that depend on it. On July 1, he declined to renew the agreement, starting a 10-year clock for its expiration.

And on Monday, Mr. Trump signed orders to impose a 50 percent tariff, starting next month, on Canadian goods ranging from plywood and paper to cement and hockey sticks, a move some speculated was an effort to force Canada to the negotiating table. Negotiations with Mexico have been smoother, but U.S. officials say they want to see big changes to the relationship. Since U.S.M.C.A. was signed in 2018, the U.S. trade deficit in goods with Mexico has more than doubled, irking Mr. Trump. U.S. officials want their Mexican counterparts to adopt changes to the pact that would require manufacturing more products in the United States and give U.S. companies greater access to the Mexican market. Mr. Trump has put tariffs on some goods from Mexico, including steel, copper and tomatoes, but most U.S.M.C.A. goods continue to come into the United States tariff free... 🟪 (READ MORE)

✅ The Pentagon, sinking billions into Iran war, is quickly running short on cash (Washington Post)

The Pentagon faces an urgent budget shortfall caused largely by the war in Iran, with some critical lines of funding set to run out within weeks even as President Donald Trump escalates the conflict with Tehran, according to lawmakers and current and former U.S. officials.

The funding crunch is already leading the Pentagon to limit training and maintenance that help maintain military readiness, according to four current and former officials, speaking on the condition of anonymity to candidly describe the budget constraints. And the collapsed ceasefire with Iran could further strain the military’s budget: After four U.S. service members died during more than a week of intensified fighting, officials in Washington signaled they were preparing for a wider conflict.

The White House has asked Congress for an immediate infusion of $67 billion to help cover the costs of the war, but lawmakers are gridlocked over how to proceed. The House plans to leave Washington on Thursday for a month-long recess, leaving any deal on military funding weeks away at the earliest. “Everybody needs to look at this situation and get rid of the complacency that they have,” Rep. Pat Harrigan (North Carolina), a Republican member of the House Armed Services Committee, said in an interview.

The Pentagon did not respond to a request for comment Monday. On Tuesday, after this article published, press secretary Sean Parnell said in a statement that Defense Secretary Pete Hegseth would “do whatever is necessary” to preserve military readiness and that defense funding is “essential.” On Tuesday, Hegseth and Joint Chiefs Chairman Gen. Dan Caine went to make their case for the money before the Senate Appropriations Committee — the first public hearing centered on the package. They last appeared on Capitol Hill in May, before a tenuous ceasefire broke down… 🟪 (READ MORE)