Rambler Newspapers

Serving Irving, Coppell and Grand Prairie

Grand Prairie – At the end of its meeting April 21, Grand Prairie city council were presented with an update on two bonds.

The last two items on the meeting agenda included the Water and Wastewater System Revenue Refunding Bonds and Sales Tax Revenue Refunding Bonds. Brady Olsen, Grand Prairie treasury and debt manager informed the council of where the city stands with the bonds.

“Our bond rating was affirmed at a AAA for water-wastewater debt, and it was also affirmed at AA for park venue sales tax debt,” Olsen said. “We have access to low interest rates at the moment in the municipal bond market. We have the chance to get some savings on some outstanding debt, and we wanted to push forward as much of that as possible.”

The city approved an ordinance allowing Tom Hart, city manager, to act as the pricing agent for the wastewater bonds so, on any given day, he can price bonds and sell them as long as the sale meets the city’s guidelines.

Olsen requested the council not act on the sales tax bonds, because the current debt holder, Bank of America, did not want to lose the city’s business.

“They value us as a partner,” Olsen said. “They approached us with the plan to refinance our debt; our existing debt just with them privately. We chose 1.6 percent and lo and behold, they accepted that. That’s a 7 percent savings, and $475,000 and savings on that debt.”