Including all debt backed by property taxes, the City has $288 million in outstanding principal and interest on bonds issued by the City and assumed by the City through annexation and dissolution of Municipal Utility Districts over time. This figure does not include debt supported by Sugar Land Regional Airport, the water utility system or economic development sales taxes.
Property taxes are the only repayment source for General Obligation bonds. The City currently has tax-backed bonds that were inherited from Municipal Utility Districts upon annexation- the water/wastewater component of those bonds are supported by utility revenues. Other bonds (Certificates of Obligation) are backed by property taxes but are supported with repayment from restricted revenue sources such as hotel occupancy taxes, lease revenues and public improvement district assessments.