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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. 2021-4-13: To authorize the issuance of "City of Plano, Texas, Municipal Drainage Utility System Revenue Refunding and Improvement Bonds, Series 2021"; 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. Adopted
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| | | | | | | | BACKGROUND Proceeds from the sale of the Bonds will be used to (i) fund various drainage and erosion projects throughout the City, (ii) refund a portion of the City's outstanding municipal drainage utility system revenue debt for debt service savings, (iii) fund a debt service reserve fund, and (iv) pay costs of issuance associated with the sale of the Bonds. |
| | | | | | | | FINANCIAL SUMMARY/STRATEGIC GOALS This ordinance permits the City of Plano to sell Municipal Drainage Revenue Bonds to refund outstanding debt at a lower interest rate and finance erosion control and drainage projects as planned in the 2020-21 Community Investment Program. Approximately $43,635,000 is expected to be raised from the 2021 Municipal Drainage Revenue Bond sale, with the City repaying the bonds over a 40-year term through the drainage utility fees paid by the Plano property owners. 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 3.15%.
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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