Sugar Land City Council on Tuesday voted unanimously to adopt a resolution expressing the city’s intent to finance expenditures to be incurred, not to exceed $5 million, from future issuance of certificates of obligation.
The city plans to begin work on projects under its capital improvements plan, with $1.225 million to be spent on airport projects, and an additional $3.513 million in other general projects, for a total of $4.73 million.
An issuance of bonded debt, in a maximum principal amount of $5 million will be issued to cover the projects.
“The IRS does allow the city to proceed with projects prior to issuing the debt, however, under IRS regulations, before expending any construction dollars on these projects, the city must issue an ‘intent to reimburse’ from future borrowings for project costs incurred prior to the issuance of debt,” Director of Research and Budget Jennifer Brown said. “The city must declare its intent to reimburse or finance the expenditures within 60 days of the first expenditure.”
The city council voted to approve the issuance of $21.925 million in waterworks and sewer system revenue bonds to fund multiple improvements to the city’s water and sewer system.
The city council voted to order an election for May 12 to elect a mayor and to at-large city council positions.
Mayor James Thompson has filed for re-election to his position. Thomas Abraham currently serves in At-Large Position 1, and Jacqueline Baly Chaumette serves in At-Large Position 2. Himesh Gandhi and Joe Zimmerman have filed for Position 1 and Position 2, respectively.
Filing for the election continues through March 5.
All items were approved. All votes were unanimous with all members present. Agenda