Title
Consider/Discuss/Act on All Matters Incident and Related to the Issuance and Sale of City of McKinney, Texas General Obligation Refunding Bonds, 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: February 19, 2013
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
· Approve Ordinance
ITEM SUMMARY:
· The Series 2003 General Obligation Bond (GO) has an outstanding principal of $18.355 million.
· The Series 2003A Certificate of Obligation (CO) has an outstanding principal of $2.885 million.
· The current interest rate for the bonds ranges from 3.85% to 5.50% per annum.
· 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 2003 GO and 2003A CO were issued, sold, and delivered subject to the right and authority of the City to refund them prior to maturity.
FINANCIAL SUMMARY:
· The Series 2013 GO Refunding Bonds are conservatively estimated to have yields of .60% to 2.50% which will produce interest cost savings of $3.2 million or 13.5% Net Present Value (NPV).
· This Ordinance establishes a minimum NPV of 5% and a maximum true interest cost of 3.50%.
BOARD OR COMMISSION RECOMMENDATION: N/A