Conroe City Council has agreed to issue certificates of obligation to fund just over $44 million in street, water and sewer projects.
Collin Boothe, assistant city administrator and director of finance, said the projects are part of the city’s 2024 Capital Improvement Program project list.
“(The council’s approval) kicks off the process to issue that debt,” Boothe said of the process that does not require voter approval.
ON YOURCONROENEWS.COM: Hyatt Regency Hotel in Conroe eyes tax rebates amid early financial challenges
Booth said the first series of $8.3 million bonds will fund street and signal projects, including the $2.3 million street rehabilitation in the Glenwood Park subdivision and $2.2 million in drainage improvements on Lilly Boulevard.
The second series of bonds total about $36 million and will fund 15 water and sewer projects, including a $7 million sewer line along FM 2854 and the $5 million sewer line rehabilitation in the Rivershire subdivision.
“It is issued as certificates of obligation, but it is paid back through our water and sewer revenue,” Boothe said of the water and sewer project debt.
As part of the city’s $314 million budget for 2024, the council approved water and sewer rate increases for both commercial and residential customers. However, commercial customers will see the biggest increase at 6.75 percent, with residents seeing their bills go up 3.25 percent.
Boothe said the proposed rate would increase a residential bill for 15,000-gallon users from $206 monthly to $209. Commercial customers using 100,000 gallons a month will see their bill climb from $1,540 to $1,673.
During an August council meeting, Councilman Harry Hardman said that increasing the commercial rate makes sense.
“They are our largest users,” Hardman said. “It minimizes the effect it will have on residents.”
Delivery of the bonds, Boothe said, is expected Dec. 7.
