Frisco approves up to $92 million in certificates of obligation for water projects and Grand Park phase
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Summary
Council approved a parameters ordinance authorizing certificates of obligation not to exceed $92 million to fund water and sewer projects and the first phase of Grand Park; the council affirmed the city's AAA ratings and set issuance parameters.
The Frisco City Council on Tuesday adopted a parameters ordinance authorizing the issuance of certificates of obligation not to exceed $92 million to finance water and sewer capital projects and the initial phase of Grand Park.
City Chief Financial Officer Derek Hahn told the council the package includes roughly $70 million for water and sewer projects — including a $50 million water tank and pump station — and $20 million for Grand Park phase 1. The CFO said both projects are intended to be self-supporting: the water and sewer debt will be paid from utility rates while Grand Park phase 1 would be funded through the city’s community development corporation (CDC) revenue.
The ordinance sets issuance parameters including a maximum true interest cost of 5 percent, a 20‑year maximum term, and requires sale of the certificates within 90 days of approval. City staff also noted the city’s credit ratings have been reaffirmed by S&P and Moody’s at AAA ahead of the issuance.
Council approved the ordinance unanimously. Staff said the issuance will be managed by the CFO, the city manager and the mayor, with follow‑up documentation to be executed under the ordinance’s delegated authority.
The council did not set exact project start dates in the ordinance; financing details such as final par amount and sale date will be determined within the approved parameters and reported back to council.