Monday, April 29, 2024
The Granbury City Council voted unanimously last week to issue $47 million in bonds to fund infrastructure improvements.
Upgrades will include street improvements, including drainage, landscaping, curbs, gutters and sidewalks, and extension of the city’s combined water, sewer and electric system.
The unanimous vote followed a presentation by John Martin of Hilltop Securities, Inc.
Martin provided council members with a packet of information that included praise of the city’s financial management from Standard and Poor’s and Fitch Ratings, Inc. credit rating agencies.
Martin referenced a question that had been asked by a council member during a recent council meeting about how the bond issuance might affect the city’s credit rating.
“They didn’t blink,” he said of S&P and Fitch. “Even though it’s the largest debt issuance that the city has ever taken on, they are very comfortable with you all’s ability to handle it from a credit standpoint.”
Martin also stated that the agencies affirmed the city’s AA rating “without any problem at all.”
The agencies were “very complimentary” in their overview and outlook of the city, noting Granbury’s “very strong economy and strong financial management,” Martin said.
“Your overall true interest rate is 3.69%,” the financial advisor said. “That’s fantastic.”
Mayor Jim Jarratt noted that in years past, the city did not have the strong credit rating it has now.
“There was a period of time where it didn’t look nearly so good,” he said. “This is a big deal.”
