Title
Consider/Discuss/Act on All Matters Incident and Related to Approving the Resolution of the McKinney Community Development Corporation Board Action Authorizing the Issuance of the McKinney Community Development Corporation Sales Tax Revenue Bonds and the Corporation’s Delegation to a Pricing Officer to Carry Out the Procedures of the Resolution and Relating to the Deposit of Sales Tax Revenues for Such Bonds, Including the Adoption of a Resolution Pertaining Thereto
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 Resolution
ITEM SUMMARY:
• This Resolution approves the MCDC Board action to issue $30.17 million in taxable sales tax revenue bonds in a private bank placement through a competitive process.
• The current interest rate for the bonds ranges shall not exceed 4.6%.
BACKGROUND INFORMATION:
• Bonds will be issued for the purpose of financing improvements to the McKinney National Airport (the “Airport”) including passenger terminal facilities and other airport facilities, streets and roads, taxiways, aprons, and other infrastructure related to the Airport and the acquisition of any land related thereto and to pay the costs of issuance associated with the issuance of the Bonds, in conformity with the Constitution and laws of the State of Texas.
• Applications were made to Standard and Poor’s (S&P) to review the bond rating and the AA rating was affirmed.
FINANCIAL SUMMARY:
• The total not to exceed principal amount for new issue is $30,170,000.
• The true interest cost rate for the Bonds shall not exceed 4.6%.
• Term not to exceed 20 years.
BOARD OR COMMISSION RECOMMENDATION:
• MCDC Board Approved March 18, 2025