Friendswood Loses Case

Judge Scott Jenkins of the 53rd District Court in Travis County ruled last week that Friendswood cannot issue debt to buy park land outside the city limits without approval from its voters.

The city must also pay attorney fees to the five residents who opposed the debt sale, as well as court costs. The total cost to the city is estimated at $1 million.

Jenkins agreed with the citizens that the city charter approved by voters in 1997 prohibits the issuance of any debt without voter approval.

The five filed suit after the Friendswood City Council voted in June to issue $11 million in certificates of obligation to repair streets, improve drainage, and buy 60 acres of park land in the nearby community of Alvin. Friendswood is located in both Galveston and Harris counties, but the proposed parkland is in Brazoria County.

The city sought to issue the certificates after voters rejected a $9.6 million bond package in May for a new library and park improvements. The proposed bond projects were different from those to be funded by the certificates of obligation

Friendswood’s outstanding GO debt carries underlying ratings of A1 from Moody’s Investors Service and A-plus from Standard & Poor’s.

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