Richardson council approves bond issuance to cover $88.5M in projects

Bonds for the city of Richardson that will be used to finance several projects have been sold, according to a report given to Richardson City Council during its April 22 meeting.

In total, the city issued more than $88.5 million in general obligation and certificate of obligation bonds, according to a news release.

The overview

Hilltop Securities Managing Director Nick Bulaich, whose firm acts as the city's financial advisor, said around $67.5 million in revenue was generated through the sale of general obligation bonds, which was deposited into various project funds for items included in the 2021 and 2023 bond packages. He added that proceeds from the sale of certificates of obligations totaled nearly $21 million and will be used for other city projects.

Combined, the about $88.5 million in debt will be issued to cover several projects, including library renovations, water and sewer infrastructure needs, purchasing various city vehicles, and constructing a new City Hall. In addition to the bond sale, Bulaich affirmed the city maintained its AAA ratings with credit rating agencies Standard and Poor’s and Moody’s.

Bulaich said the interest rates for the bonds are fixed at 3.86% over the 20-year maturity of the general obligation bonds and 3.81% for the 20-year maturity window for the certificates of obligation bonds. The bonds were sold April 22 because conditions outlined in offering documents were met when they went to market, he added.