Title
Consider/Discuss/Act on All Matters Incident and Related to the Issuance and Sale of “City of McKinney, Texas, General Obligation Bonds, Series 2025A”, 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: March 18, 2025
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 $37,000,000 for the following new money projects from various voter authorizations:
o $11.5 million 2019 Voter Authorized Public Safety
o $2.5 million 2024 Voter Authorized Parks & Recreation
o $23 million 2024 Voter Authorized Streets/Traffic
• The maximum true interest cost shall not exceed 5.00%
• 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.
FINANCIAL SUMMARY:
• Total not to exceed amount for new issues is $37,000,000
BOARD OR COMMISSION RECOMMENDATION: N/A