Last month, League City Council authorized City staff to facilitate the sale of $38.8 million in bonds to fund the design and construction of various capital improvement projects across the City related to water, drainage, and mobility.
On July 29, the City sold $13 million in Certificates of Obligation (COs). The sale will fund a 36-inch water line from the City’s pump station on Highway 3 to the South Shore Pump Station. COs do not require voter approval and are backed by the full faith and credit of the city the bond.
Also sold on July 29, was $25.8 million in General Obligation (GO) bonds, which is the third installment of the 2019 Bond Program passed by voters in May of 2019. The sale will fund $23 million in cash for drainage improvement projects included in Prop A and $2 million cash for traffic and mobility projects included in Prop B.
As part of the bond sale, League City’s credit rating was reviewed by Moody’s Investors Service and S&P Global Ratings. Moody’s maintained the City’s rating of Aa1 and stated in their review, “The Aa1 issuer rating reflects a large tax base with favorable resident wealth that benefits from easy access to employment opportunities in the greater Houston metropolitan area. The rating incorporates the city's steady history of ample reserves supported by conservative and proactive financial management. The rating also considers the city's modest debt and pension burden that will remain affordable supported by a growing local economy.”
S&P Global Ratings maintained the City’s rating of AA+ and stated in their review, “The ‘AA+’ rating reflects our view of the city’s very strong financial position supported by what we view as very strong financial policies and practices and strong economic growth trends.”