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Council approves waterworks and sewer revenue bonds issuance; JP Morgan awarded the sale
Summary
Sugar Land on May 20 authorized Waterworks and Sewer System Revenue Bonds Series 2025 to finance utility capital projects; JP Morgan Securities won the sale and both rating agencies assigned AA ratings with stable outlooks.
Sugar Land City Council approved Ordinance No. 23-77 on May 20 authorizing issuance of the City of Sugar Land Waterworks and Sewer System Revenue Bonds Series 2025. Finance staff said the issuance will finance utility-related capital projects included in the city's five-year CIP and described the rating and sale results; the council passed the ordinance by voice vote recorded as passing 6-0.
Director of Finance Jing Zhao said the utility bond program covers roughly $222 million in CIP projects; the sale received eight bids and JP Morgan Securities was the winning bidder. Both S&P and Fitch assigned double-A ratings with stable outlooks, and the interest cost on the sale was reported as approximately 4.477 percent. Closing is scheduled for June 18, at which point proceeds will be available to fund the listed utility projects.
Staff recommended council adopt the ordinance; the motion was made, seconded and approved 6-0. Council did not expand on project-level details during the recorded discussion; staff said detailed information about the projects is available in the FY25 capital budget document.
