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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 ...
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