Sugar Land City Council approves $222M water and sewer revenue bond issuance

In a significant move for the City of Sugar Land, the City Council approved an ordinance authorizing the issuance of the Texas Water Works and Sewer System Revenue Bonds Series 2025 during their meeting on May 20, 2025. This decision, which passed unanimously with a 6-0 vote, is aimed at funding essential capital improvement projects within the city’s utility system.

The ordinance will facilitate the issuance of approximately $222 million in revenue bonds, which are specifically tied to the revenue generated from utility user fees rather than taxpayer funds. This financial strategy is designed to support 16 approved projects outlined in the city’s five-year Capital Improvement Plan (CIP). The projects are crucial for maintaining and enhancing the city’s water and sewer infrastructure, ensuring reliable services for residents.

City officials highlighted the strong financial health of Sugar Land’s utility system, which has earned a double-A rating with a stable outlook from both S&P and Fitch rating agencies. This positive assessment reflects the city's low operational costs and a robust customer base, which are critical factors in securing favorable interest rates for the bonds. The interest cost for the bonds was set at 4.477%, with the sale conducted by JP Morgan Securities.

The council's approval of this ordinance not only underscores the city’s commitment to improving its utility services but also demonstrates a proactive approach to managing public resources effectively. The closing for the bond issuance is scheduled for June 18, 2025, marking a pivotal step in advancing the city’s infrastructure goals.

In addition to the bond discussion, the council opted to defer reports from the city manager and council members, indicating a focus on the immediate financial matters at hand. This meeting reflects the ongoing efforts of the Sugar Land City Council to address community needs through strategic financial planning and infrastructure investment.