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Council approves $27.45 million first issuance of 2024 general obligation bond package; sale closes June 18
Summary
Sugar Land on May 20 authorized the issuance of general obligation bonds series 2025, the first sale from the voter-approved bond package, to fund 18 projects totaling about $27.45 million; Huntington Securities Inc. was the winning bidder and the sale carries an interest cost of about 4.06 percent.
Sugar Land staff presented Ordinance No. 23-76 on May 20 to authorize issuance of the city’s general obligation (G.O.) bond series 2025, the first issuance from the voter-approved bond package. Council approved the ordinance by recorded vote (6-0) after staff summarized the projects and financing terms.
Finance director Jing Zhao said the issuance will fund 18 projects with an aggregate cost of about $27,450,000. Of that total, $25,650,000 was authorized by voters in the 2024 bond election; an additional $1,800,000 originated in the 2019 bond package. Zhao said the city engaged S&P and Fitch for ratings: S&P assigned a “AA” with a stable outlook; Fitch assigned a rating with a negative outlook. Staff reported the sale (that morning) received eight bids and Huntington Securities Inc. won the award; the interest cost for the issuance was approximately 4.06 percent. Closing and receipt of bond proceeds are scheduled for June 18.
Council members asked about the sequencing of projects and whether outstanding 2019 projects (including drainage) affect the timing. City engineer Jesse Lee explained one remaining 2019 project was delayed because of pending easement/right-of-way acquisition tied to a late property, and staff intends to sell debt as projects reach construction readiness. Council asked about the animal shelter line item; staff said the animal shelter design kickoff has begun, design is expected to take about 10 to 12 months and construction 12 to 18 months.
Staff recommended council adopt Ordinance No. 23-76 to authorize the issuance; council passed the ordinance. The city will close the financing on June 18 and receive bond proceeds for the listed projects.
