In a Tuesday meeting, The Colony City Council approved a $20 million certificate of obligation (CO) bond sale for the 2022 year.
This bond money can be used to support various infrastructure projects and will be used to fund road, drainage, sidewalk and utility projects throughout the city.
The interest rate for this bond is set at 3.91% over 20 years, officials said.
Issuance of this bond is made possible insofar as it is a CO bond which, unlike general obligation bonds, do not require voter approval from a bond referendum. They also differ from general obligation bonds in that CO bonds are not required to be earmarked for one single project.
Funding for the CO's projects is authorized by the city's 2021-22 capital improvement project (CIP) plan.