Consider/Discuss/Act on All Matters Incident and Related to the Issuance and Sale of “City of McKinney, Texas General Obligation Refunding and Improvement Bonds, Series 2026” including the Adoption of an Ordinance Authorizing the Issuance of Such Bonds, Establishing Parameters of the Sale of Such Bonds and Delegating Certain Matters to an Authorized Official(s) of the City

This ordinance authorizes the issuance and sale of "City of McKinney, Texas General Obligation Refunding and Improvement Bonds, Series 2026" and delegates authority for their execution. The bonds will fund new public improvements and refund existing debt to achieve savings.

New Money Authorization:
The City will issue up to $75,000,000 in new General Obligation bonds for voter-approved projects from 2019 and 2024 elections, including:

• $9,300,000 for Public Safety
• $27,000,000 for Parks & Recreation
• $38,700,000 for Streets

Refunding Existing Debt:
The ordinance also authorizes refunding up to $5,000,000 of outstanding Series 2014 and 2016 General Obligation bonds, aiming for at least 3.00% net present value debt service savings (estimated over $181,000).

Delegated Authority & Parameters:
The City Manager, Chief Financial Officer, or Director of Financial Services are designated as "Pricing Officers" to execute the bond sales by May 19, 2026, with a closing date of June 17, 2026. Key parameters include a maximum true interest cost of 5.00%, new money maturity by August 15, 2046, and refunding maturity by August 15, 2035. The delegation expires if not exercised within one year of the ordinance's adoption.

Repayment & Compliance:
A continuing direct annual ad valorem tax will be levied on all taxable property to repay the bonds. The City will also adhere to federal tax-exempt status covenants and SEC Rule 15c2-12 for continuing disclosure, including annual financial reporting and timely notification of material events to the MSRB.