Garland took on $4.37 million in 2024 sales tax bonds, with payments budgeted under streets

Garland borrowed $4,374,000 through two 2024 sales tax revenue bonds, which the city's audit records in the fiscal year that ended June 30, 2025. ^[1]

The fiscal 2027 budget report the city filed with the State Auditor lists the payments for both bonds under streets. ^[2]

The bonds

Note 5 of the audit lists a 2024A sales tax revenue bond of $1,489,000 with a final maturity of 2039 and $1,412,683 outstanding at June 30, 2025, and a 2024B bond of $2,885,000 with a final maturity of 2055, all still outstanding. ^[1]

The general fund's original and final budgets each planned $4,000,000 in bond proceeds. The audit shows $4,374,000 received, $374,000 more. The fund also paid $149,619 in bond fees and issuance costs. ^[1]

Where the spending went

General fund spending on highways and roads was $3,686,653 in fiscal 2025, against a final budget of $4,193,148. The audit's management discussion says the increase in general fund spending was "largely due to capital projects and related grants and bond proceeds." ^[1]

The city's budget report shows $3,379,270 in "Streets CAPITAL OUTLAY" for fiscal 2025, compared with $100,000 budgeted for fiscal 2026 and none for fiscal 2027. ^[2]

Governmental construction in process grew by $3,805,995 during the year, to $4,456,983 at June 30, 2025. ^[1]

Repayment

The fiscal 2027 budget lists $82,000 in principal and $48,680 in interest on the 2024A bond, $127,115 in interest on the 2024B bond and $1,200 in administrative fees, a total of $258,995. ^[2]

The general fund's fiscal 2027 revenue in the same report is $3,168,400. ^[2]