Title
Consider/Discuss/Act on All Matters Incident and Related to the Issuance and Sale of "City of McKinney, Texas, General Obligation Refunding and Improvement Bonds, Series 2024", Including the Adoption of an Ordinance Authorizing the Issuance of Such Bonds, Establishing Parameters of the Sale of Such Bonds and Delegating Certain Matters to an Authorized Official(s) of the City
Summary
COUNCIL GOAL: Financially Sound Government
4A: Provide funding and organizational framework to ensure continual economic improvements
MEETING DATE: June 25, 2024
DEPARTMENT: Financial Services
CONTACT: Mark Holloway, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
* Approval of Ordinance
ITEM SUMMARY:
* The City is issuing new General Obligation Bonds in the amount of $81,915,000 for the following new money projects from various voter authorizations:
o $34.915 million 2019 Voter Authorized Streets
o $27 million 2019 Voter Authorized Public Safety
o $20 million 2024 Voter Authorized Parks & Recreation
* The maximum true interest cost shall not exceed 5.00%
* The City also has the option to refund in whole or in part the General Obligation and Refunding Bonds, Series 2014 maturing in years 2024 to 2035 and aggregating in par amount of $9,555,000.
* Refunding bonds is similar to refinancing debt obligations to take advantage of lower interest rates.
* The refunding must produce a net present value debt service savings of at least 3% of the refunded bonds.
* Additionally, approval of this ordinance will designate the City Manager, Chief Financial Officer and Director of Finance 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:
* Continuing growth drives the need for major capital improvements.
* Applications have been made to both Standard and Poor's (S&P) and Moody's Investors Services, Inc. (Moody's) to review the bond rating.
* Th...
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