Brownsville Broaches Bonds

Brownsville Mayor Pat M. Ahumada Jr. plans to call for a $50 million bond issue to cover a variety of projects in Texas’ southernmost city.

Among the projects that might be funded with voter approval are a sports park, a new downtown bus terminal, more fire department substations, and various street paving projects.

Last year, the City Commission approved $7.9 million of sales tax revenue bonds for the Brownsville Community Improvement Corp. to allow for the continuing development of the sports park.

In 2004 voters approved only $12 million for the park, which is now expected to cost about $26 million due to the added cost of utility construction and preparing the land for development.

Ahumada had earlier proposed a $3 fee on utility bills, but that failed to win support. Another source of revenue for the bond debt could come from reinstating 3 cents trimmed from the property tax rate by the City Commission.

As part of a $48.4 million bond issue in 2001, Brownsville spent $35.7 million on streets, sidewalks, and drainage., and will spend the last $5.4 million for the same needs this year.

The city will pay $16 million this fiscal year in principal and interest payments on debt dating to 1986, officials said. The city carries general obligation bond debt of $153 million and will have paid $229 million through 2027 when the GOs are retired, records show.

Brownsville is rated A by Standard & Poor’s, A-plus by Fitch Ratings, and A2 by Moody’s Investors Service.

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