title
Consider/Discuss/Act on Setting Forth the Timing and Process for a 2015 Bond Election
Summary
MEETING DATE: February 3, 2015
DEPARTMENT: Financial Services
CONTACT: Tom Muehlenbeck, Interim City Manager
Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
· Direction to staff on setting forth the timing and process for a 2015 bond election.
ITEM SUMMARY:
· Financial Services in conjunction with the City Manager's Office and impacted departments have been working with the sub-committee of Council to develop a recommended 10 year Operating Fund and CIP/Debt Service Fund financial plan.
· Staff has identified approximately $220 million in bonding capacity within the adopted FY 15 tax rate of .5830 over the next 10 years. $160 million of this capacity will require voter authorization of which staff has tentatively identified:
o $64.1 million for Roads
o $22.5 million for Public Safety Facilities
o $21.7 million for Facilities
o $50 million for Airport related improvements
o $2 million for Drainage
BACKGROUND INFORMATION:
· On January 5, 2015 and January 26, 2015 staff presented a 10 financial plan and bond capacity analysis.
· Conservative growth assumptions were used to determine that over the next 10 years the City of McKinney should have the capacity to issue $220.6 million in debt. There is currently just over $60 million in voter authorized debt to be issued from the 2006 and 2010 bond elections leaving an additional $160 in "non-voter authorized" to be considered by the voters at some point in the future. Staff recommends that Council authorize us to begin a process to call for an election. Should Council direct staff to begin preparing for a bond election, the following schedule could be used for a May or November election:
o February 3, 2015 - Council direct staff to begin election process including establishing a committee structure to include: Appoint a committee or determine the use of community forums. If a committee or Community forum is to be used, when and how will the Committee/Forums be appointed. Determine if the Council would want to call a May, 9, 2015 or a November 3, 2015 election.
o For a May 9, 2015 Election:
· February 17, 2015 - Provide direction to legal counsel to draft ballot language
· February 23, 2015 - Call May 9, 2015 Bond Election
· April - Early voting begins
· May 9, 2015 - Election
· May 18th or 19th - Canvass Ballots
o For a November 3, 2015 Election -
· February - Appoint Committee or Community Forum
· March - June - Bond committee/Forum meetings and/or community meetings. Recommendations presented to Council
· July - Provide direction to legal counsel to draft ballot language
· August - Council reviews ballot language and adopts an ordinance to call for the November 3, 2015 election
· October - Early voting begins
· November 3, 2015 - Election
· November 16, 2015 - Canvass Election
FINANCIAL SUMMARY:
· Models are built with the assumption that a .5830 tax rate will be maintained over the next 10 years.
· A May 9, 2015 Bond Election would not increase the cost for the already scheduled General Election
· November 3, 2015 Bond Election may cost approximately $50,000-60,000.
BOARD OR COMMISSION RECOMMENDATION: N/A