Pearland sold nearly $63 million in bonds to help fund city infrastructure improvement projects across the city.
The sale, authorized by City Council at its Aug. 24 meeting, includes about $59.5 million for water and sewer system projects and $3.6 million for other city projects, including drainage improvements, according to city documents.
What you need to know
The city's plan initially anticipated borrowing about $115 million for the projects, with the Aug. 24 bond sale reflecting a reduction of nearly $52 million from the original plan, according to city documents.
According to city documents, the reduction in the approved bond sale is largely due to lower-than-expected project costs and adjustments to project schedules.
Diving in deeper
About $3.6 million of the bonds will go toward various infrastructure projects, including an extension of Reid Boulevard and traffic signal upgrades along Hwy. 35.
The city expects to make about $6.2 million in total payments over 30 years, including nearly $2.7 million in interest, and will use property tax revenue to pay back the debt, city documents show.
To view the full list of projects, click here.
Also of note
The larger portion of the bond sale, about $59.5 million, will go toward water and sewer system projects, including several lift station improvements and water line replacements, documents show.
The city expects to make about $116.5 million in total payments over 30 years, including roughly $59 million in interest, documents show.
All water and sewer debt is repaid by users of the systems through utility rates. As a result, the water and sewer portion of the Aug. 24 bond sale will not affect property taxes, according to city documents.
To view the full list of projects, click here.
What’s next
Pearland will officially close on the bonds and receive the funds for the infrastructure projects Sept. 24, according to city documents.
