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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. 2021-4-11: To authorize the issuance of "City of Plano, Texas, Waterworks and Sewer System Revenue Bonds, Series 2021"; pledging the net revenues of the City's combined waterworks and sewer system to the payment of the principal of and interest on said Bonds; resolving other matters incident and related to the issuance, payment, security, sale and delivery of said Bonds, including establishing parameters and delegating matters to certain City officials; and providing a severability clause and an effective date. Adopted |
| | | | | | | | BACKGROUND Proceeds from the sale of the Bonds will be used for extending and improving the water and sanitary sewer system, including the acquisition of right-of-way, and to pay certain costs incurred in connection with the issuance of the Bonds. |
| | | | | | | | FINANCIAL SUMMARY/STRATEGIC GOALS This ordinance authorizes the City of Plano to sell Waterworks and Sewer System Revenue Bonds to be repaid with future municipal waterworks and sewer fee revenues. The proceeds of this Bond sale will be used for extending and improving the water and sanitary sewer system, including the acquisition of right-of-way as planned in the 2021 Community Investment Program. Approximately $12,590,000 is expected to be raised from the 2021 Waterworks and Sewer System Revenue Bond sale, with the City repaying the Bonds over a 10-year term through the receipt of system revenues. The exact amount of interest and principal to be paid will be determined by a competitive bid process. The maximum true interest cost rate for the Bonds shall not exceed 2.00%.
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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