Debt Information
City of Granbury issues a variety of long-term debt instruments to finance major capital purchases, such as improving or expanding City infrastructure and facilities. These instruments include general obligation bonds, certificates of obligation and revenue bonds. Future ad valorem tax revenues and/or water, electric and sewer system revenues secure these debt obligations.
General Obligation (GO) Bonds
General Obligation Bonds provide funds for the acquisition and construction of major capital equipment, facilities, and infrastructure. General obligation Bonds are direct obligations issued on a pledge of the general taxing power for the payment of the debt obligations of the City. GO Bonds are backed by the “full faith and credit” of the City. In practice, principal and interest payments are funded by a tax assessment on the valuation of each commercial, residential and business personal property within the City.
The City of Granbury’s general obligation debt is rated ‘AA’ by both Standard & Poor’s (S&P) Global Ratings and Fitch Ratings. The ‘AA’ rating indicates that the City of Granbury has a very strong capacity to meet its financial commitments.
Water and Sewer Revenue Bonds
Revenue Bonds are used to finance the acquisition and construction of major capital improvements for the electric, water and sewer system and related facilities. These Revenue Bonds constitute special obligations of the City solely secured by the pledge of the net revenues of the electric, water and sewer system.
The City’s Utility Bonds are rated ‘A+’ by Standard & Poor’s (S&P) Global Ratings.
Certificates of Obligation (COs)
Certificates of Obligation are typically issued without voter approval and backed by tax revenue, fee revenues, or a combination of the two. The City’s COs are secured by a combination of property taxes and a limited pledge of the City’s combined electric, water and wastewater system.
Outstanding Debt Obligation by Issue as of 9-30-2017: Issue-by-issue listing including principal amount of each outstanding debt obligation.
Outstanding Direct Debt by Fiscal Year for the last 5-year: Total outstanding tax-supported and revenue-supported debt.
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Tax Rates for Current Fiscal Year
Budgets: Documents include debt service information for current and previous fiscal years.
Debt Service Schedules as of 9-30-2017: Debt service schedules for all outstanding General Obligation Bonds, Certificates of Obligation and Revenue Bonds.
For More information: 2019-2020 Adopted Budget
Official Statement for the 2016 Bond Refunding
HB 1378: Debt Obligation Reporting under Local Government Code Section 140.008
The 84th Legislature passed HB 1378 to increase the transparency of local government debt. Under Local Government Code § 140.008, political subdivisions, including counties, cities, school districts, junior college districts, special purpose districts, and other subdivisions of state government must annually compile their debt obligation data from the preceding fiscal year.
