As we approach our July Budget Meetings, we want residents to understand the municipal funding tools that help us deliver the high standard of service our community expects and deserves. Our goal is to keep residents informed and empowered with clear, accurate insights into how your city government operates. While some questions have recently circulated in the community, we welcome the opportunity to provide the facts and ensure everyone has access to the information they need to stay engaged and confident in the process.

 

What Types of Bonds Is the City Using or Intending to Use?

 

General Obligation Bonds (GOs)

General Obligation Bonds are municipal bonds issued by a city or local government to fund public projects such as parks, roads, or facilities. These bonds are backed by the full faith and credit of the issuing entity, meaning the city pledges to repay the debt using property tax revenue if necessary. Because they require voter approval through an election, GOs reflect direct community support for major, long-term investments.

 

Certificates of Obligation (COs)

Certificates of Obligation are another form of municipal debt used to finance essential infrastructure and capital improvements. Unlike GOs, COs do not require voter approval unless a valid petition is filed by residents. They are authorized by the City Council following public notice and are often used for time-sensitive needs, grant matches, or when project flexibility is required. COs are typically backed by a combination of property taxes and other revenue sources, and their use is governed by Texas state law to ensure transparency and accountability.

 

What Is the City Campus?

 

The City Campus Project is a multi-faceted capital improvement initiative designed to resolve decades-old infrastructure challenges, strengthen emergency response, improve operational efficiency, and meet resident demand for expanded community and recreational space.

 

Outlined in the May 12 City Council packet (available on the City’s website link here), the conceptual plan includes administrative offices, a courtroom, public and council meeting areas, emergency operations, infrastructure operations, and a recreational center. This facility will serve as a central hub where residents can conduct business, engage civically, and enjoy public amenities.

 

A cost breakdown on Page 22 shows:

• Community/Rec Center & Pavilion: ~$5.3 million
• Administration Building (City Hall functions): ~$3 million
• Public Works/Parks/Facilities Renovation: ~$2.3 million
• Emergency Operations Center/Court/Council Chambers/Committee Meeting Hall: ~$4.4 million

 

Including demolition, site work, soft costs, contingency, the full project estimate is approximately $21.6 million.

 

Rumor vs. Fact

 

Rumor:

Certificates of Obligation are only supposed to be used for emergencies or as a loophole to avoid voter approval.

 

Fact:

Certificates of Obligation are a legal and widely used financing tool authorized by the Texas Local Government Code (Chapter 271, Subchapter C). They are not limited to emergencies.

 

COs are often more cost effective allowing cities to fund critical projects in a timely manner—especially when aligning with grant deadlines, rising construction costs, or urgent infrastructure needs. Waiting longer incurs additional costs and inflationary increases. They provide flexibility while still ensuring transparency through public notice and petition rights.

 

Rumor:

The City of Jersey Village is looking to issue $100 million in debt.

 

Fact:

The current notices of intent represent $52.155 million in total debt. Of that, $8.155 million comes from voter-approved bonds from the 2023 election.

Resolution No. 2025-36 authorizes the issuance of the remaining voter-approved General Obligation Bonds from the 2023 Bond election:

• $6.155 million for Water and Sewer Projects
• $2 million for Street Improvements

 

These projects are part of the City’s Capital Improvement Plan. The estimated impact to the debt service rate is a 1.7-cent increase for the next two fiscal years, after which the rate is expected to decline as older bonds are retired.

 

Certificates of Obligation: Series 2025A and 2025B

Resolution No. 2025-37 authorizes publication of the Notice of Intent to Issue Certificates of Obligation, Series 2025A City Campus Project. This resolution was approved unanimously.

The $24 million in COs would fund:

• Construction cost ($17.3M estimate from Brookstone)
• Soft costs (~15%)
• Construction contingency (10%)
• Inflation impacts

Brookstone advises that delaying the project could increase costs by 4% by the end of 2025, further reinforcing the importance of acting promptly.

 

Resolution No. 2025-38 authorizes publication of the Notice of Intent to Issue Certificates of Obligation, Series 2025B for Water and Wastewater System improvements, totaling $20 million. This resolution was approved unanimously.

 

These funds support projects identified in the City’s 10-year Utility Capital Plan, including:

• Village Water Plant rehab (FY26): $1.3M
• West/Seattle Plant upgrades (FY27): $113K
• West Water Plant rehab (FY28): $1.24M
• Lift station repairs: ~$1.5M
• Castlebridge Wastewater Treatment Plant upgrades: ~$8.5M
• Future systemwide improvements (FY31–35): ~$9M

 

Investing now ensures system reliability, efficiency, and regulatory compliance.

 

Rumor:

The notices were published in an obscure newspaper to avoid public attention.

 

Fact:

All notices were published in the Houston Chronicle, the City’s official newspaper of record. All of our notices are posted with the Chronicle. These notices were also posted on the City’s website for additional visibility. Other local publications are welcome to share this information, but the Chronicle is used for official publication as required by law.

 

Rumor:

Interest rates for Certificates of Obligation are higher than those for General Obligation Bonds.

 

Fact:

Interest rates for COs are typically comparable to General Obligation Bonds because both are backed by the full faith and credit of the City.

The actual rate depends on bond rating, market conditions, and repayment term, not the bond type. Cities frequently issue both types of bonds at nearly identical interest rates in the same year. COs continue to be a fiscally responsible and flexible tool for municipalities.

 

Statement:

The City intends to issue these bonds over a 25-year term, though the notice language includes broader flexibility. This flexibility allows the City to structure repayment in the most fiscally responsible manner. The infrastructure being funded is designed to serve the community for 50 years or more, making long-term financing both appropriate and prudent.