Title
Consider/Discuss/Act on All Matters Incident and Related to the Issuance and Sale of “City of McKinney, Texas, Tax and Limited Pledge Revenue Certificates of Obligation, Series 2024”, Including the Adoption of an Ordinance Authorizing the Issuance of Such Certificates of Obligation, Establishing Parameters for the Sale and Issuance of Such Certificates of Obligation 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 Ordinance authorizes the issuance of certificates of obligation in the maximum principal amount of not to exceed $4,500,000 to be issued with a maximum true interest cost of 5.00% and a maximum maturity of August 15, 2044.
BACKGROUND INFORMATION:
• A Resolution giving notice of intention to issue Certificates of Obligation was passed on May 07, 2024, and the notice of intent was continually published on the City’s website and also in the Dallas Morning News on May 09, 2024 and May 16, 2024 as required.
• The purpose of the debt is for paying contractual obligations to be incurred for (i) constructing, improving, extending, expanding and developing drainage projects, including the purchase of land, rights-of-way and equipment therefor and (ii) professional services rendered in connection to such projects and the financing thereof.
FINANCIAL SUMMARY:
• Issuance of Certificates of Obligation in the maximum principal amount of not to exceed $4,500,000. All bond issuance costs will be paid from the bond proceeds. The certificates will be amortized over twenty (20) years.
BOARD OR COMMISSION RECOMMENDATION: N/A