Grapevine city staff, working with financial advisors and the city’s bond counsel, sold close to $37 million in certificates of obligation to pay for three projects.

The sale of the 20-year bonds worth $36.7 million, which carry a 3.75% interest rate, was approved by Grapevine City Council during a joint meeting with the planning and zoning commission June 18.

Two-minute impact

As previously reported by Community Impact, the certificates of obligation will help cover costs for three projects, including:

• $20 million for updates to the city’s water and wastewater treatment plants
• $15 million for improvements to the Grapevine Service Center, which was impacted by a December 2022 tornado
• $1.7 million for repairs to two stormwater culverts

Of the $15 million in bonds to pay for the service center, about $10 million are secured by property taxes. The remainder of projects are budgeted in various city funds or paid for from insurance proceeds.

“The successful sale was accomplished due to the city’s strong financial performance,” Chief Financial Officer Jeff Strawn said.

What’s next?

City officials previously stated construction on the water and wastewater treatment plant improvements will start next spring after a contractor is selected this fall.

The sale of the bonds is also not expected to have an impact on the city’s property tax rate, Strawn previously told Community Impact.