Title
Consider/Discuss/Act on All Matters Incident and Related to Approving the Resolution of the McKinney Economic Development Corporation Board Action Authorizing the Issuance of the McKinney Economic Development Corporation Sales Tax Revenue Improvement and Refunding Bonds, Taxable Series 2021
Summary
COUNCIL GOAL: Financially Sound Government
4A: Provide funding and organizational framework to ensure continual economic improvements
MEETING DATE: March 16, 2021
DEPARTMENT: MEDC / City Financial Services
CONTACT: Peter Tokar, MEDC President
Mark Holloway, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution
ITEM SUMMARY:
• This Resolution approves the MEDC Board action to issue taxable sales tax revenue bonds not to exceed $16.5 million (and)
• Sales tax revenue refunding bonds (tax exempt) not to exceed $25 million
• The true interest cost rate for the bonds shall not exceed 4.0%.
BACKGROUND INFORMATION:
• The purposes of the issuance are (i) in the principal amount specified in the Pricing Certificate to provide funds to finance the costs of the Projects authorized by Section 501.101 of the Local Government Code which will create or retain primary jobs, (ii) in the principal amount specified in the Pricing Certificate for the discharge and final payment of certain outstanding obligations of the Corporation and (iii) to pay costs of issuance, in conformity with the Constitution and laws of the State of Texas, including the Act, the Texas Nonprofit Corporation Act, and Chapter 22, Texas Business Organizations Code
• Application has been made to Standard and Poor’s (S&P) to review the bond rating
FINANCIAL SUMMARY:
• Total not to exceed amount for new issues is $16,500,000
• Total not to exceed amount to refund is $25,000,000
• Term not to exceed 20 years
• Net present value savings of refunding debt of at least 4%
BOARD OR COMMISSION RECOMMENDATION:
• N/A