Title
Consider/Discuss/Act on All Matters Incident and Related to the Issuance and Sale of “City of McKinney, Texas, Waterworks And Sewer System Revenue Refunding And Improvement Bonds, Series 2025”, Including the Adoption of an Ordinance Authorizing the Issuance of Such Bonds, Establishing Parameters for the Sale of Such Bonds and Delegating Certain Matters to an Authorized City 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 Waterworks And Sewer System Revenue Refunding And Improvement Bonds for $32,500,000 of various water and sewer related projects and $2,900,000 for refunding purposes.
• 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:
• Continued growth drives the need for major capital improvements.
• Applications will be made to both Standard and Poor’s (S&P) and Moody’s Investors Services, Inc. (Moody’s) to review the bond rating.
FINANCIAL SUMMARY:
• The total not to exceed principal amount for new money issue is not to exceed $32,500,000.
• The refunding must produce present value debt service savings of at least 3.0%
• The maximum true interest cost must not exceed 5.0%
• The maximum term shall not exceed 20 years
• Total debt savings anticipated of 8% - 9%
• Total not to exceed amount for refunding is $29,200,000
BOARD OR COMMISSION RECOMMENDATION:
• N/A