The city of Lewisville, Texas, sold $67.9 million in bonds to refund a previous issuance and make infrastructure, public safety, and parks improvements.
The bonds mature between 2024 and 2043, with yields ranging from 2.78% to 4.07%. The securities received ratings of AAA from Fitch Ratings and S&P Global Ratings.
“The city’s strong financial profile reflects a diverse and stable revenue base, modest expenditure growth and a demonstrated ability to reduce expenditures during economic downturns,” according to Fitch.
The issuance comes amid rapid growth in the city’s revenue, which has grown faster than inflation and U.S. gross domestic product over the past decade. Fitch expects that trend to continue in the years to come.
This week’s issuance will expend the remainder of the $230 million in bonds Lewisville voters have authorized during the past eight years amid a series of municipal projects. The city is considering asking voters to authorize additional bonding authority within the next two years.
Lewisville is about 30 miles northwest of downtown Dallas. The bonds are general obligations of the city of Lewisville, backed by property taxes. In fiscal year 2023, the city’s properties had a taxable assessed value of $18.6 billion, and the city collected more than $90 million in taxes.
“Officials have indicated that a surplus is likely by the fiscal year end,” according to Fitch.
Jefferies LLC served as lead underwriter on the issuance, purchasing the bonds for $74 million. The price reflected a premium of more than $6 million.