Page 51 - CityofGrapevineFY26AdoptedBudget

DEBT MANAGEMENT

DEBT MANAGEMENT
The City issues debt for the purposes of financing long-term capital infrastruture as well as short-term projects. The Debt Service Fund is used for the
accumulation of resources for and the payment of general principal, interest and related costs on debt issued by the City. Types of debt issued include
general obligation refunding and improvement bonds, combination tax and revenue certificates of obligation, public property finance contractual
obligations, and sales tax revenue refunding bonds. The City aims to be efficient and financially conservative by strategizing refundings and debt
structuring.

OUTSTANDING DEBT
The City of Grapevine has $197,106,022 in outstanding debt obligations. The use of these funds contributes towards the financing of land purchases,
vehicle and capital replacements (when sufficient cash is not available), and capital projects to include streets, facilities, water and wastewater systems,
drainage, IT infrastructure, and parks. As of 2024, the City was issued an AA+ rating from S&P on the most recent issuance of the Combination Tax and
Revenue Certificates of Obligation, Series 2024, at which time they affirmed this overall rating on all existing general obligation debt. Moody's has
provided a Aa1 rating. This rating represents the confidence of the City's ability to repay its debt and further lends to achieving lower interest rates on
future issuances which reduces the overall borrowing costs.

Amt
Debt Type % Issued Principal Interest O/S FY26
Issued
$ $ $
Combination Tax and Revenue Certificates of 111,840,00 50% 91,810,00 30,132,2 $121,942
Obligation ,247
0 0 47
General Obligation Refunding & Improvement 89,865,00 41% 56,090,00 6,413,64 62,503,6
Bonds 0 0 4 44
Public Property Finance Contractual Obligations 3,070,000 1% 75,000 1,500 76,500

10,615,00 1,968,63 12,583,6
Sales Tax Revenue Refunding Bonds 16,930,000 8%
0 1 31

$ $ $ $
TOTAL 221,705,00 100% 158,590,0 38,516,0 197,106,
0 00 22 022

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