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 Bonds, Establishing Parameters for the Sale and Issuance of Such Bonds and Delegating Certain Matters to an Authorized Official of the City
Summary
MEETING DATE: October 1, 2013
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
· Approve Ordinance
ITEM SUMMARY:
· The City desires to issue $12,800,000 Tax and Limited Pledge Airport Revenue Certificates of Obligation, Taxable Series 2013 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.
· The bonds are offered for sale to be conducted on Tuesday, October 8, 2013 and will be negotiated on that day.
· This request will authorize the Chief Financial Officer or City Manager to analyze and to approve the offering upon receipt.
BACKGROUND INFORMATION:
· 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