Page 39 - Grapevine FY19 Operating Budget

T
he Debt Service Fund is used for the accumulation of resources for and the payment of
general long-term debt principal, interest and related costs on general obligation bonds and
public property finance contractual obligations issued by the City. Revenues are generated by
the collection of property taxes dedicated to interest and sinking fund requirements (I&S),
interest income, and transfers from the Convention and Visitors, Stormwater Drainage, Utility
Enterprise and Lake Enterprise funds.

Over the past decade, the City of Grapevine has issued long-term general obligation (GO) debt of
$124 million to finance capital improvements, the annual street overlay program, to purchase
land, and to refinance existing debt at lower interest rates. The issues are primarily the result of a
negotiated sale and are issued in denominations of $5,000 each. Interest is paid semi-annually
on February 15 and August 15.

Original
Issue Date
Outstanding GO Bond Debt Issues Amount Issued Use of Proceeds
GO Ref Bonds Series 2009 $24,280,000 05/21/09 Refunding
GO Ref Bonds Series 2010 $10,475,000 06/15/10 Refunding, 39% Water & Sewer
GO Ref Bonds Series 2012 $8,060,000 12/01/12 Refunding, 13.5% Lake Pks, 3.1% CVB
GO Bonds Series 2013 $65,805,000 06/15/13 Public Safety Bldg; Recreation Center
GO Ref Bonds Series 2015 $14,695,000 02/01/15 Refunding
GO Ref Bonds Series 2017 $1,365,000 01/15/17 Refunding

The Grapevine 4B Economic Development Corporation issued $19.5 million in Sales Tax
Revenue Bonds in January 2014. Proceeds from the sale of Bonds were used to acquire land
within the city for economic development. The bonds are secured by the gross proceeds of ¼ of
the ½ cent sales and use tax levied within the City of Grapevine for the benefit of the
Corporation. In April 2018 the City authorized the issuance of and sale of Sales Tax Revenue
Refunding Bonds, Series 2018 to refund the 2014 issue. The refund is estimated to reduce the
interest rate from 5.52% to 4.20% and is estimated to save the City approximately $2,476,583.
This action will not extend the term of the bonds, which will be fully retired in 2034.

Original
Issue Date
Outstanding Revenue Bond Issues Amount Issued Use of Proceeds

Sales Tax Revenue Bonds Series 2018 $16,930,000 04/15/18 Refunding

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