Page 45 - Grapevine FY20 Approved 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
$149 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.

On June 4, 2019 the City Council authorized the issuance and sale of General Obligation
Improvement Bonds in the amount of $24,700,000 through the Public Approved Bond Election
held November 7, 2017. The purpose of the issue is to fund projects to (1) design, improve,
construct, equip and furnish the Animal Shelter Facility for $3.9 million; (2) design, construct,
improve, renovate, expand equip and furnish new Fire Station 2 and new Fire Station 3 as well as
acquire the land for $16 million; and (3) design, improve, construct, equip and furnish the
Clubhouse and multi-use facility at the Grapevine Municipal Golf Course for $4.8 million.

Additionally, this will authorize the refunding of Series 2009 and 2009-A Certificates of
Obligation for combined estimated savings of $676,000.

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
GO Ref & Improv Bonds Series 2019 $24,700,000 06/04/19 Refunding, Animal Shelter facility,
Fire Stations 2 & 3, Golf Clubhouse

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 used to promote new and expanded business enterprises 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.

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