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CITY COUNCIL AGENDA MEMO |
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| | | | | | | | | MEETING DATE: | 4/26/2021 | | DEPARTMENT: | Finance | | DIRECTOR: | Denise Tacke, Director of Finance | | AGENDA ITEM: | To authorize the issuance of City of Plano Bonds | | RECOMMENDED ACTION: | Adoption of Ordinances |
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| | | | | | | | ITEM SUMMARY Ordinance No. 2021-4-12: To authorize the issuance of "City of Plano, Texas, General Obligation Refunding and Improvement Bonds, Series 2021"; levying a continuing direct annual ad valorem tax for the payment of said Bonds; resolving other matters incident and related to the issuance, sale, payment and delivery of said Bonds; establishing procedures for the sale and delivery of said Bonds; and delegating matters relating to the sale and issuance of said Bonds to an authorized City official; and providing a severability clause and an effective date. Adopted |
| | | | | | | | BACKGROUND Proceeds from the sale of the Bonds will be used (i) for various permanent public improvements and public purposes, including public safety facilities, libraries, parks, and public infrastructure improvements related to the revitalization of commercial facilities, street improvements and improvements to existing City facilities, (ii) to refund a portion of the City's outstanding G.O. debt for debt service savings, and (iii) for payment of professional services of attorneys, financial advisors and other professionals in connection with the projects and issuance of the Bonds. |
| | | | | | | | FINANCIAL SUMMARY/STRATEGIC GOALS This ordinance permits the City of Plano to sell General Obligation (G.O.) Bonds to refund outstanding debt at a lower interest rate and to finance street, park, public infrastructure and library projects, and improvements to public safety and other City facilities as planned in the 2020-21 Community Investment Program and authorized by Plano voters in the 2013, 2017, and 2019 bond referendums. Approximately $81,235,000 is expected to be raised from the 2021 G.O. Bond sale, with the City repaying the bonds over a 20-year term through the interest and sinking portion of Plano's property tax rate. The exact amount of interest and principal to be paid will be determined by a competitive bid process. The maximum true interest cost shall not exceed 2.75%.
Approval of this Ordinance supports the Strategic Plan Critical Success Factors of Safe, Vibrant Neighborhoods and Excellent, Innovative, and Accountable City Government. |
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