Title
Consider/Discuss/Act on an Ordinance Authorizing the Issuance of "City of McKinney, Texas, General Obligation Bonds, Series 2015", and Delegating Matters Relating to the Sale and Issuance of said Bonds to an Authorized City Official(s)
Summary
COUNCIL GOAL: Financially Sound Government
MEETING DATE: June 16, 2015
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
· Approval of Ordinance
ITEM SUMMARY:
· The City is issuing new General Obligation Bonds in the amount of:
o $52,300,000 for the following projects - 2006 and 2010 voter authorizations
§ $35.9 million for Streets/Traffic
§ $6.3 million for Fire Facilities
§ $7.4 million for Public Safety Facilities
§ $2.7 million for Public Works Facilities
· Additionally, approval of this ordinance will designate the Interim City Manager and Chief Financial Officer as Pricing Officers to execute the transaction. This will enable pricing of the bonds at such time as the market conditions are most favorable.
BACKGROUND INFORMATION:
· In January 2015, staff presented and Council adopted a 10 year financial plan that included both the Debt Service Fund and the Operating Fund (General Fund). This plan is intended to be used for annual planning purposes to maintain the tax rate at .5830 cents per $100 of assessed valuation.
· Based on the financial plan, it was determined that the City of McKinney has bonding capacity in 2015 of $52.3 million.
· The City of McKinney has utilized fund balances over the last 3 years to fund capital projects. However, we are now at a point where we must issue voter authorized debt in order to continue funding planned projects.
FINANCIAL SUMMARY:
· The total not to exceed amount for new issues is $55,000,000
BOARD OR COMMISSION RECOMMENDATION: N/A