Title
Consider/Discuss/Act on a Resolution Adopting a 10 year Financial Plan
Summary
MEETING DATE: February 3, 2015
DEPARTMENT: Financial Services
CONTACT: Tom Muehlenbeck, Interim City Manager
Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
· Adoption of a resolution of the10 year Operating and Debt Service Financial Plan.
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.
BACKGROUND INFORMATION:
· On January 5, 2015 and January 26, 2015 staff presented a 10 financial plan and bond capacity analysis.
· The goal was to develop a comprehensive plan based on conservative growth assumptions that could be used to both identify bonding capacity and the operational impacts of certain CIP projects.
· 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.
FINANCIAL SUMMARY:
· Models are built with the assumption that a .5830 tax rate will be maintained over the next 10 years.
· Staff requests Council approval of the attached plans as a guideline for future debt issuances and operational spending.
BOARD OR COMMISSION RECOMMENDATION: N/A