Title
Consider/Discuss/Act on all Matters Incident and Related to the Issuance and Sale of “City of McKinney, Texas, Tax and Limited Pledge Airport Revenue Certificates of Obligation, Taxable Series 2013”, including the Adoption of an Ordinance Authorizing the Issuance of such Certificates of Obligation
Summary
MEETING DATE: November 5, 2013
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
• Approve Ordinance
ITEM SUMMARY:
• The City desires to issue certificates of obligation in the maximum principal amount of not to exceed $12,655,000 for the purpose of paying contractual obligations to be incurred for (i) acquiring, constructing, improving, extending, and equipping municipal airport facilities and (ii) professional services rendered in relation to such projects and the financing thereof.
• A revised notice has been duly published in The Dallas Morning News, a newspaper of general circulation in the City, on October 18, 2013 and October 25, 2013 and in the McKinney Courier-Gazette, a newspaper of general circulation in the City, on October 20, 2013
• No petition protesting the issuance of the certificates of obligation described in the aforesaid notice, signed by at least 5% of the qualified electors of the City, has been presented to or filed with the City Secretary on or prior to the date of the passage of this Ordinance.
• This request is to authorize the issuance of the certificates of obligation described in such notice.
BACKGROUND INFORMATION:
• The certificates were offered for sale and negotiated on Tuesday, October 8, 2013.
• The City of McKinney has entered into a contract for purchase of the airport structures at the Collin County Regional Airport.
• This purchase is scheduled to close in November of this year.
• Purchase of the properties will be made using a combination of cash and proceeds from this issuance.
FINANCIAL SUMMARY:
• Applications have been made to both Standard and Poor’s (S&P) and Moody’s Investors Services, Inc. (Moody’s) to review of the bond rating.
• Currently, all outstanding tax supported debt of the City is rated “Aa1” by Moody’s Investors Services, Inc. (Moody’s) and “AAA“ by Standard and Poor’s, a Division of The McGraw-Hill Companies, Inc. (S&P).
BOARD OR COMMISSION RECOMMENDATION: N/A