Title
Consider/Discuss/Act on an Ordinance Authorizing the Issuance of "City of McKinney, Texas, Waterworks and Sewer System Revenue Refunding and Improvements 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 Waterworks and Sewer System Revenue Bonds in the amount of:
o $4,765,000 for various water and sewer related projects
* The City has the option to refund in whole or in part the Waterworks and Sewer System Revenue Bonds, Series 2005 and aggregating in par amount of $8,495,000.
* Refunding bonds is similar to refinancing debt obligations to take advantage of lower interest rates.
* The current average interest rate for the bonds is 4.62% 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.
* 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:
* The 2005 Waterworks and Sewer System Revenue Bonds were issued, sold and delivered subject to the right and authority of the City to refund them prior to maturity.
* Total refundings for all outstanding debt done between 2012 and 2014 to take advantage of historically low interest rates have resulted in annual debt service savings of not less than $465,000 annually and a combined overall savings of $8,900,000.
FINANCIAL SUMMARY:
* Total debt savings of not less than $600,000, with an anticipated saving...
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