It seems as though the city of Graham and Young County have been plunged forehead deep in water concerns lately. This past Thursday's events at Graham's City Hall proved no different.
On Thursday morning, the Graham City Council approved the passage of an ordinance authorizing the issuance of certificates of obligation in the amount of $12.5 million. These certificates went specifically toward the purpose of paying its contractual obligations in the form of its water systems renovation project.
Raymond James & Associates ended up with the winning bid at 4.97 percent interest, beating out many other bids, the highest of which coming at a rate of 5.8 percent interest. Basically, this means that the city of Graham is taking out a loan to update several of its water renewal projects.
Due to a recent S&P bond rating upgrade from BBB to A minus, effectively taking the interest the city will have to pay on a 20-year note down from 5.25 percent interest to 4.97 percent, the savings in interest the city of Graham will pay over 20 years totals roughly $1 million.
It was this point, laid out by First Southwest Securities representative David Mednaiche, that helped nudge the Graham City Council toward the passage of the ordinance. The $12.5 million sought out by the city of Graham is part of the funding stage of the water improvement projects approved by the city council over 18 months ago. But in fact, the council has been discussing needed upgrades for the last five years.
This Thursday's meeting marks significant progress in the pursuit of an up-to-date infrastructure in terms of water delivery and treatment for Graham.
Read the entire story in this weekend's edition of the Graham Leader.