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Katy council authorizes up to $34.63 million in KDA contract revenue bonds to fund mobility projects
Summary
Council approved a resolution authorizing the Katy Development Authority to issue contract revenue bonds Series 2026 not to exceed $34,630,000 to fund several mobility projects; the financing will be repaid from metro sales tax revenues, not property tax.
The Katy City Council on Jan. 26 approved a resolution authorizing the issuance of Katy Development Authority (KDA) contract revenue bonds, Series 2026, in an amount not to exceed $34,630,000 and confirmed assignment of certain contract revenues, staff said. The KDA had approved the package on Jan. 20.
Council members described the bond package as a financing tool to accelerate a set of six mobility projects (many in Ward B) and noted the city will use metro sales tax revenues to pay debt service rather than general property taxes. One council member said the program allows the city to package several road and drainage projects together to address growth and connectivity in emerging areas.
Council discussion highlighted that the city previously approved a separate $33 million bond package in 2022 for other road projects and that combining projects with the KDA financing expands the city’s ability to address both mobility and drainage together. A council member praised the KDA and KDA leadership for coordinating across jurisdictions and timing projects to improve quality of life.
The council approved the resolution by voice vote.
What comes next: KDA and city staff will proceed with project scheduling and bond closing steps; staff said details of individual road projects will be advanced by contract and design teams.
