Title
Consider/Discuss/Act on an Ordinance Authorizing the Refunding of Certain Outstanding Tax and Limited Pledge Airport Revenue Tax Notes, Taxable Series 2013 and Delegation of Authority to Pricing Officer(s) to Sell and Deliver the Bonds
Summary
MEETING DATE: July 15, 2014
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
· Approval of Ordinance
ITEM SUMMARY:
· This Ordinance will delegate the pricing officer(s) and authorize the sale of the bonds when market conditions are optimal.
· The City of McKinney issued $5,050,000 in 12 month tax notes in November of 2013 as a part of the acquisition of the airport facilities.
· At the time of the acquisition, it was anticipated that one of the hangars would be sold and this portion of the debt would be paid using proceeds from the sale.
· However, the sale did not take place thus making a restructure of this issuance necessary.
· This refunding will coincide with the timeline of the remaining bonds issued to acquire the airport facilities.
· All arrangements necessary to notify the holders of such obligations of the decision to refund will be directed in accordance with the refunding provisions.
BACKGROUND INFORMATION:
· The 2013 Tax Notes were issued, sold and delivered subject to the right and authority of the City to refund them prior to maturity.
· This Refunding will allow the City to extend the debt over 20 years and take advantage of historically low interest rates.
FINANCIAL SUMMARY:
· This refunding will pay off the Tax Notes due in August 2014 and restructure the debt over the next 20 years.
BOARD OR COMMISSION RECOMMENDATION: N/A