Crandall Authorized Millions in New Debt: Where Is the Money Going?
A closer look at the city’s $17.18 million certificates of obligation, what they can and cannot pay for, and what the borrowing means for taxpayers.
CRANDALL — As Crandall races to build infrastructure for a rapidly growing population, the city has moved forward with one of its largest recent debt issuances: approximately $17.18 million in certificates of obligation.
The Crandall City Council’s June financing documents authorized the city to pursue up to $17.18 million in Combination Tax and Revenue Certificates of Obligation, Series 2026. The preliminary bond offering prepared for the August 17 sale listed $17.175 million in certificates.
On August 17, the council agenda included an ordinance authorizing the issuance and awarding the sale of the certificates.
So where is the money going? The answer is broader than just one sewer or road project.
What the Debt Can Pay For
According to Crandall’s official bond disclosure, proceeds can be used for:
- Water and wastewater system improvements
- Streets and roadways
- Drainage improvements
- Parks
- Improvements to the city’s administrative office building
- Fire Department vehicles and equipment
- Land, easements and rights of way associated with those projects
- Engineering, legal, financial and other professional costs connected with the projects and debt issuance
That is important because city officials have recently emphasized several particularly urgent infrastructure projects. In an August report to the Crandall Economic Development Corporation, the city said the debt issuance would provide funding for the North Lift Station and Force Main, drainage improvements and sewer line replacements.
Those projects fit into a much larger infrastructure challenge created by Crandall’s rapid expansion.
Sewer Capacity Is a Major Issue
Wastewater capacity has already become one of the city’s most significant projects tied to growth. Crandall’s current budget identifies the sewer force main as a major infrastructure project intended to expand wastewater capacity and support future residential and commercial development.
The city’s 2025 water and wastewater impact fee study illustrates the scale of the long term need. That study identifies tens of millions of dollars in future wastewater infrastructure, including force mains, gravity sewer lines and lift stations.
In other words, the new certificates do not represent the end of Crandall’s infrastructure spending. They are part of a much larger buildout.
Crandall’s Debt Is Growing Quickly
The new borrowing also changes Crandall’s debt picture substantially. The city’s preliminary official statement shows general obligation debt outstanding of approximately:
| Fiscal Year | General Obligation Debt |
|---|---|
| 2024 | $5.915 million |
| 2025 | $9.035 million |
| 2026 estimate | $25.645 million |
The 2026 figure includes the new certificates and represents nearly three times the amount reported for 2025.
Those figures deserve attention, but they do not by themselves indicate that Crandall is in financial trouble.
S&P Says Debt Remains Manageable
S&P Global Ratings assigned Crandall’s Series 2026 certificates an AA minus rating with a stable outlook. According to S&P Global Ratings, Crandall is a rapidly growing community with stable finances and an improving reserve position, and the city’s debt burden remains manageable, although the agency also expects Crandall will likely need to issue additional debt in the medium term as infrastructure demands continue.
Per S&P Global Ratings: Crandall’s tax base has approximately doubled during the past five years, and city officials anticipate roughly 4,000 additional single family homes during the next decade.
That growth is central to understanding the borrowing. New homes and commercial development expand the city’s tax base, but they also require sewer capacity, drainage, roads, public safety equipment and other municipal services before or while that growth occurs.
Taxpayers Ultimately Back the Certificates
Despite the reference to revenue in the name, these certificates are primarily backed by the city’s taxing authority. The certificates are payable through an annual ad valorem property tax levy, with an additional limited pledge of no more than $1,000 in surplus water and sewer revenues.
That means the borrowing becomes part of Crandall’s long term, tax supported debt obligations. The preliminary financing schedule extends maturities through 2051.
One Question Still Needs a More Detailed Answer
Crandall’s bond documents clearly identify the categories eligible for funding, and city officials have identified the lift station, force main, drainage and sewer replacements among the immediate priorities.
What the preliminary official statement does not provide is a simple table showing exactly how much of the approximately $17.18 million will ultimately be spent on each individual project, broken down project by project.
That distinction matters. Taxpayers can see that roads, parks, utilities, an administrative building and fire equipment are all authorized uses, but the bond disclosure reviewed for this article does not say that a specific amount will go to each category. As the city begins spending the proceeds, the next level of transparency will be tracking the contracts, engineering costs and construction awards against the debt that was issued.
Crandall’s borrowing is substantial. But so is the infrastructure challenge facing a city whose population, development and tax base are expanding rapidly.
The bigger question is therefore not simply why Crandall borrowed millions. It is whether those millions are spent on the projects that will allow the city’s infrastructure to keep pace with its growth, and whether taxpayers can clearly see where every major portion of that money goes.
