Pearland advances $83.4M bond sale to fund city infrastructure

According to city documents, the nearly $86.7 million reduction in the approved bond sale is largely due to lower-than-expected project costs and adjustments to project schedules.

The roughly $3 million in total savings comes from the city refunding $35.8 million in existing bonds to secure lower interest rates, generating an estimated $1.26 million in savings, as well as using cash on hand to pay off $9.25 million in older debt early, to secure an additional $1.71 million in savings.

Diving in deeper

A large bulk of the new debt is dedicated entirely to water and sewer system projects, with other funds allocated to drainage improvements, sidewalk replacements and road extensions, among other projects.

To view the full list of projects, click here.

What’s next?

Council is scheduled to vote on the second and final reading of the bond ordinances at its June 22 meeting.

Following required public notices and evaluations by credit rating agencies in July, the actual bond sales are scheduled to take place Aug. 24.

Pearland will then officially close on the bonds and receive the funds for the infrastructure projects Sept. 24, according to city documents.