Nearly $30 million of the debt will be used for issuing general obligation bonds, which are tax exempt, voter-approved costs, Richardson Director of Finance Keith Dagen said. These bonds include $10 million for the improvement of streets, nearly $4 million for sidewalks, $6.5 million for drainage and $1.4 million in park maintenance.
All of these measures are part of the $190 million worth of bonds that was approved during the 2021 election. This issuance will cover the first year of the bond package.
Dagen said another $15.6 million of the debt sale will be used to issue certificates of obligation. This involves debt incurred on short-term expenses that does not require voter approval. Certificates of obligation will be used to pay for $1.4 million of fire equipment, over $1.2 million of solid waste equipment and over $13 million for water and sewer infrastructure improvements, according to the city’s presentation.
The remaining $1.7 million will be issued for general obligation refunding bonds, which will be used to pay off older debt. Dagen said nearly $1.2 million of these bonds will be tax-supported.
Council is scheduled to pass an ordinance at its April 25 meeting that approves the sale of the bonds and certificates. A breakdown of the city's debt issuance plan can be seen here.
