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Sugar Land moves forward with 2025 general obligation and utility revenue bond issuances
Summary
City staff presented and council approved ordinances authorizing a general obligation bond issuance (first series of 2025 GO bonds) to fund voter‑authorized projects and a utility revenue bond for water/wastewater capital projects; both sales closed bids earlier the same day and closings were scheduled for June 18.
The Sugar Land City Council approved ordinances authorizing two bond issuances: a 2025 general obligation bond series to fund voter‑authorized projects and a 2025 water works and sewer system revenue bond to support utility capital improvements.
Director of Finance Jing Zhao told council the GO bond issuance will fund 18 projects totaling about $27.45 million in the first issuance. Of that, $25.65 million was authorized by voters in the 2024 bond election and $1.8 million was from remaining 2019 authorization; the 2025 issuance represents the first sale under the city’s approved $350 million bond package. Fitch and S&P provided credit ratings; both firms assigned AAA ratings with S&P issuing a stable outlook and Fitch a negative outlook. The sale received eight bids and Huntington Securities Inc. won the GO bond sale with a stated interest cost of 4.06%; closing was scheduled for June 18.
For the utility revenue bond, Jing Zhao said the city’s five‑year CIP includes roughly $222 million in water and sewer projects; the revenue bond is supported by utility user fees rather than property taxes. Both S&P and Fitch assigned the utility bonds a double‑A rating with stable outlooks. The revenue bond sale also received eight bids; JPMorgan Securities won with an interest cost of 4.477%, and closing was likewise scheduled for June 18.
Council members asked about timing and outstanding projects. City Engineer Jesse Lee explained one remaining 2019 geobond drainage project had not begun because required easements had not been acquired; staff said design for the animal shelter (a 2019 proposition item) is underway with design expected to take 10–12 months and construction 12–18 months thereafter.
Council moved to approve ordinance number 23‑76 (GO bond authorization) and ordinance number 23‑77 (water works and sewer revenue bond authorization). Both ordinances passed 6–0 on first and final consideration. Staff said bond proceeds will be received at closing and allocated to the listed capital projects.
