The City of Lubbock City Council will vote on a proposal setting the stage to borrow up to $250 million Thursday evening. The money will go for a long list of projects that are estimated to cost $233.4 million.
In some cases, the city has already started on the projects and borrowed from itself for things like design or engineering costs. The bond money can replenish those funds.
How will the money be paid back?
Official documents said, “The annual payments are made from the annual revenues of the respective Enterprise and Governmental Funds where the projects are incurred.”
For example, any debt for Lubbock Power and Light projects will be repaid by LP&L. Airport projects will be paid back from the airport budget, etc.
The projects include $50 million for public safety, which includes a proposed police substation at 140th Street and Indiana Avenue. They also include less than $20 million for remodeling at the airport, and more than $43 million for an ERCOT transmission line.
CLICK HERE to see official documents including a list of projects.
This particular kind of city debt only requires approval by the city council. It does not require a public referendum. The vote Thursday is not for final authority to issue bonds.
The projects will come back to council during the fiscal year for authority to issue the debt.
