Frisco City Council unanimously approved a pair of ordinances to issue the bonds during its Sept. 1 meeting. Frisco Mayor Jeff Cheney previously explained the funds are to be used for projects that were temporarily paused at the beginning of the coronavirus pandemic to allow the city to assess its budget needs.
Frisco Chief Financial Officer Anita Cothran told council $30 million in general obligation bonds would be used for the continuation of road projects, including the expansion of Panther Creek Parkway between the Dallas North Tollway and Preston Road. She said those bonds were previously authorized by Frisco voters.
“Once we sell this $30 million, we’ll still have $95 million remaining in road bonds that we will be issuing over the next several years,” Cothran said.
Other road projects Cothran said the bonds would fund include the expansions of Rockhill Parkway from the Dallas North Tollway to Teal Road and Coit Road from SH 121 to Main Street.
The remaining $15.1 million in certificates of obligation bonds approved by council will be used for water and sewer utility projects, Cothran said. City staff said the funds would also support the installation of water lines and a sewer interceptor near the future PGA of America headquarters as well as the replacement of a lift station at Legacy Drive.
“The authorization that you’re approving tonight is actually good for one year,” Cothran said to council. “So if something happened and we didn't sell the bonds, we'd still be good for one year.”
The certificates of obligation bonds will be repaid from Frisco’s Water and Sewer Utility Fund, while the general obligation bonds will be repaid from ad valorem taxes. Cheney said issuing the bonds is not expected to affect the city’s tax rate.