The Grapevine City Council was notified of the Public Works department's plan to issue up to $30 million in bonds for various capital projects.
A resolution approved during the March 3 meeting will allow for $10 million to be used for projects before the issuance of the bonds, and the city will be reimbursed upon sales of the bonds in June, according to city documents.
The context
Chief Financial Officer Jeffrey Strawn said the $10 million that will be used now is currently in the city’s utility fund. He said it allows the city to spend money now and reimburse itself once the bonds are issued. Council will vote to approve the reimbursement ordinance and issuance of the bonds during the May 5 meeting, and the funds will be delivered by June 2.
According to the presentation at the March 3 meeting, the increase in water and sewer rates in the fiscal year 2025-26 budget included a portion to cover this debt payment.
According to city documents, with an assumed interest rate of 4.5%, the estimated cost of principal and interest of this bond will be $45.8 million.
The details
The projects include constructing, reconstruction or replacing the city’s water utility assets such as the water plant, the sewer treatment plant, lift stations, pump stations, water towers, communication equipment, water lines, sewer lines and associated items like pumps, water meters, valves, hydrants, sanitary sewer manholes and sanitary sewer services, according to city documents.
A presentation showed the cost included:
- $19 million for the wastewater plant, replacing clarifiers, filters, air lines, blowers and electrical systems
- $6 million for the plant maintenance building that is under construction and an emergency generator that is required by Senate Bill 3
- $5 million for relocation of raw water pump house
The city approved $20 million in bonds for the project in 2024, according to previous Community Impact reporting.
What they are saying
“The wastewater plant is a corrosive environment. It's an old plant. ... We obviously have a lot of work to do out there,” City Manager Bruno Rumbelow said. “We have done a lot of work here before. This is just simply a continuation of the work that, again happens, when you own and operate a wastewater plant with the capacity that we have. The $5 million relocation of the raw water pump house is absolutely a project that we have needed to do for quite some time. I appreciate the staff, and obviously, the [U.S. Army] Corps [of Engineers] for allowing us to do it and to be at a point where we can do this.”
