[00:00:01]
[CALL TO ORDER]
JUNE 25TH.WE'RE IN COUNCIL CHAMBERS AT 2 22 NORTH TENNESSEE STREET, IN THE GREAT CITY OF MCKINNEY.
UM, WE ARE FIRST OF ALL HAVE PUBLIC COMMENTS ON AGENDA ITEMS, BUT I DO NOT SHOW THAT ANYONE HAS SIGNED UP TO SPEAK.
[EXECUTIVE SESSION]
WE ARE GOING TO FIRST GO INTO EXECUTIVE SESSION, SO I'M SORRY FOR THOSE THAT ARE HERE.UH, YEAH, I'LL BE VERY SHORT, BUT WE DO HAVE SOME THINGS WE NEED TO DISCUSS, UM, IN EXECUTIVE SESSION PRIOR TO OUR MEETING.
SO I WILL DO THAT FIRST AND WE'LL BE BACK AS QUICK AS WE CAN.
SO IN, UH, ACCORDANCE TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0 7 1 CONSULTATIONS WITH THE ATTORNEY ON WORK SESSION SPECIAL SESSION, A REGULAR SESSION AGENDA ITEM REQUIRING CONFIDENTIAL ATTORNEY-CLIENT ADVICE INSTATED BY THE DELIBERATION OR DISCUSSION OF SAID ITEMS, SECTION 5 5 1 0 7 2 DELIBERATIONS ABOUT REAL PROPERTY DOWNTOWN CITY OWNED PROPERTY REDEVELOPMENT UPDATE.
AND THERE WILL NOT BE ACTION, BUT WE MUST HAVE THIS DISCUSSION.
ALRIGHT, WE ARE BACK IN SESSION.
[Consider/Discuss/Act on All Matters Incident and Related to the Issuance and Sale of “City of McKinney, Texas, Tax and Limited Pledge Revenue Certificates of Obligation, Series 2024”, Including the Adoption of an Ordinance Authorizing the Issuance of Such Certificates of Obligation, Establishing Parameters for the Sale and Issuance of Such Certificates of Obligation and Delegating Certain Matters to an Authorized Official(s) of the City]
FIRST ITEM IS SPECIAL AGENDA ITEM 24 17 20.CONSIDER AN ACT ON ALL MATTERS INCIDENT RELATED TO THE ISSUANCE OF STATE OF SALE, EXCUSE ME, OF CITY OF MCKINNEY, TEXAS TAX LIMITED PLEDGE REVENUE, CERTIFICATES OF OBLIGATION SERIES 2024, INCLUDING THE ADOPTION OF AN ORDINANCE AUTHORIZING THE ISSUANCE OF SUCH CERTIFICATES OF OBLIGATION, ESTABLISHING PARAMETERS FOR THE SALE AND ISSUANCE OF SUCH CERTIFICATES OF THE OBLIGATION AND DELEGATING CERTAIN MATTERS TO AN AUTHOR AUTHORIZED OFFICIAL OF THE CITY.
HI, GOOD AFTERNOON, MAYOR AND COUNCIL.
I'M KELVIN BRYANT, THE INVESTMENT AND TREASURY MANAGER.
I AM, UM, DOING THIS PRESENTATION IN THE ABSENCE OF THE CFO MARK HOLLOWAY.
UM, THIS PRESENTATION COVERS, UM, THE FIRST THREE AGENDA ITEMS. THERE'S ONE PRESENTATION THAT'LL COVER ALL THREE.
SO, ALL RIGHT, SO WE'LL BE ASKING FOR, UM, AUTHORIZATION TO PUT FORTH PARAMETERS TO, UH, COMPLETE OUR BOND SALES FOR THE 2024 CIP.
UM, WE'LL BE ASKING FOR COUNSEL TO DESIGNATE THREE PRICING OFFICERS, UM, CITY MANAGER, THE CFO AND DIRECTOR OF FINANCE TO, UM, TO GO FORWARD WITH THOSE, UM, PARAMETERS, UH, NOT TO EXCEED.
YOU'LL BE AUTHORIZING US NOT TO EXCEED CERTAIN PARAMETERS THAT ARE IN THE, IN THE ORDINANCE.
UH, THE PRICING OFFICERS GO TO MARKET AT A FUTURE DATE, UH, JULY 10TH FOR THE GENERAL OBLIGATION BONDS AND THE CERTIFICATES OF OBLIGATION AND JULY 11TH FOR THE WATER AND SEWER REVENUE BONDS, UM, 'CAUSE OF MARKET VOLATILITY.
UM, YOU'LL BE GIVING US, UM, GIVING THEM PERMISSION TO ACT ON THOSE PARAMETERS AT THAT, AT THAT DATE.
UH, THE FIRST ISSUANCE IS THE GENERAL OBLIGATION.
BONDS WILL BE ISSUING NEW MONEY, UH, IN THE AMOUNT OF APPROXIMATELY $82 MILLION.
UH, THERE WAS A 2019 AUTHORIZATION FOR STREETS INFRASTRUCTURE TO BUILD AND MAINTAIN VARIOUS STREETS.
UM, THERE'S A 2019, UH, AUTHORIZATION THAT IS FOR, THEY WILL BE ISSUING FOR 27 MILLION FOR PUBLIC SAFETY FIRE HEADQUARTERS.
AND THEN THERE'S A 2024 AUTHORIZATION FOR PARKS AND RECS.
THAT WOULD BE FOR A FOURPLEX, SOFTBALL FIELDS THAT WOULD INCLUDE RESTROOMS, PARKING TRAILS, AND EVERYTHING THAT GOES ALONG WITH THAT.
SO THAT'S A TOTAL OF THE, THE MAXIMUM THAT YOU'LL ALLOW US TO, UH, TO, UM, TO SELL.
OF THE 80, APPROXIMATELY $82 MILLION.
AND THERE'S A REFUND REFUNDING PORTION THAT, UM, APPROXIMATELY $6 MILLION THAT, UM, THAT WE'LL BE REFUNDING, UH, WITH AN APPROXIMATE SAVINGS OF ABOUT 10%.
AND THEN THAT WOULD BE WITH A 20 YEAR AMORTIZATION WITH CONSERVATIVE LEVEL DEBT SERVICE TO MAINTAIN THE TAX RATE.
THE SECOND ISSUANCE IS A CERTIFICATES OF OUR OBLIGATION, ABOUT FOUR AND A HALF MILLION DOLLARS.
UH, THE PROCEEDS FOR THAT WOULD BE FOR, UH, VARIOUS DRAINAGE PROJECTS THROUGHOUT THE CITY.
THAT WOULD BE A 20 YEAR AMORTIZATION AS WELL WITH CONSERVATIVE LEVEL DEBT SERVICE.
AND THEN THE FINAL, UH, ISSUANCE IS THE WATER AND SEWER REVENUE BONDS OF APPROXIMATELY $40 MILLION.
THAT IS, UH, APPROXIMATELY 60% FOR WATER, UH, WATER IMPROVEMENTS.
AND THE REMAINDER WOULD BE FOR THE WASTEWATER PROJECTS.
NOW, SOME ARE LISTED HERE, BUT THAT'S NOT ALL OF THEM, THE
[00:05:01]
BOND RATINGS.UM, WE HAD MEETINGS WITH, UH, TWO RATING AGENCIES, STANDARDS AND POORS AND MOODY'S.
WE MET WITH STANDARD AND POORS, UH, AND WE DID ALREADY GET THE, UH, RATING FOR THAT.
THEY AFFIRMED THE RATING OF AAA, WHICH IS THE HIGHEST RATING AVAILABLE.
AND THEN FOR THE WATER, FOR THE, UH, FOR THE GOS, THE COS, AND ALSO FOR THE WATER AND SEWER REVENUE BONDS, THEY AFFIRMED THE, UH, AA PLUS RATING WITH AN UPWARD REVISED, UH, OUTLOOK TO STABLE.
AND THEN ON JUNE 5TH, WE WENT, UH, HAD THE MEETING WITH MOODY'S AND THEY AFFIRMED THE RATING OF AAA, WHICH IS THEIR HIGHEST RATING.
AND THEN THE WATER SEWER RATING WAS AFFIRMED AT THE AA ONE.
LIKE I SAID, WE MET WITH THE RATING AGENCIES ON THE 30TH ON MAY 30TH AND JUNE 5TH, WE RECEIVED THE RATINGS ON JUNE 17TH, UH, ON JUNE 25TH IS TODAY.
WE'LL, UM, YOU'LL ACT ON THESE ITEMS, ON THESE PARAMETERS.
UH, JULY 10TH, WE'LL HAVE THE COMPETITIVE BOND SALE FOR THE GENERAL OBLIGATION BONDS AND THE CERTIFICATES OF OBLIGATION.
AND ON THE JULY 11TH, WE'LL HAVE THE COMPETITIVE BOND SALE FOR THE WATER SEWER REVENUE BONDS.
AND THEN WE'LL ALSO, WE'LL CLOSE ON AUGUST THE SIXTH.
SO THAT'S MY PRESENTATION FOR THE THREE AGENDA ITEMS, AND I'LL BE HAPPY TO STAND FOR ANY QUESTIONS.
UM, LET ME CALL THE OTHER TWO ITEMS AND THEN, UH, AND THEN ENTERTAIN A MOTION FOR THE THREE ITEMS THAT WERE PRESENTED.
IS THAT ALL RIGHT, MARK? THAT WAS
AS LONG OR WOULD YOU LIKE TO JUST TAKE, EXCUSE ME, IF YOU WOULD JUST HIGHLIGHT 'EM SO THEY'RE ALL INDIVIDUALLY NOTED, AND THEN IF YOU WANT TO HAVE ONE RESOLUTION TO OR MOTION TO CARRY ON.
YOU KNOW WHAT, LET, LET'S DO A MOTION PER FOR EACH ONE? YEAH, FOR EACH ONE.
I'M GONNA HAVE TO READ 'EM ANYWAY.
SO ARE THESE PUBLIC HEARINGS, MR. MAYOR? OKAY, THEN I MOVE THAT WE APPROVE.
[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 2024”, 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]
CONSIDER ACT ON ALL MATTERS INCIDENT RELATED TO THE ISSUANCE OF SALE AND SALE OF CITY OF MCKINNEY, TEXAS GENERAL OBLIGATION REFUNDING AN IMPROVEMENT BOND SERIES 2024, 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 OF THE CITY.WE'VE ALREADY HEARD THE PRESENTATION.
IS THERE A MOTION? I'LL MAKE A MOTION THAT WE APPROVE.
ITEM TWO FOUR DASH 1 7 21 SECOND.
[Consider/Discuss/Act on All Matters Incident and Related to the Issuance and Sale of “City of McKinney, Texas, Waterworks and Sewer System Revenue Bonds, Series 2024”, 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]
2 4 1 7 2 2.CONSIDER AN ACT ON ALL MATTERS INCIDENT RELATED TO THE ISSUANCE AND SALE OF CITY MCKINNEY, TEXAS WATERWORKS AND SOURCE SYSTEM REVENUE BONDS SERIES 2024, 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 OF THE CITY.
AGAIN, WE HEARD THAT PRESENTATION.
IS THERE A MOTION? I'LL MAKE A MOTION.
ITEM TWO FOUR DASH 1 7 2 2 SECOND.
[Consider/Discuss/Act on an Ordinance Enacting a Temporary Cessation on Any New Water or Wastewater Utility Line Connections, Approval or Issuance of Any New Water Meters, or the Creation of Any New Retail Utility Service Accounts for Properties Located Outside the City’s Incorporated Limits but Within the City of McKinney’s Extraterritorial Jurisdiction and/or Certificates of Convenience and Necessity]
MOVE TO ITEM 2 4 1 7 2 3.CONSIDER AN ACT ON AN ORDINANCE IN ENACT A TEMPORARY CITATION OF ANY NEW WATER OR WASTEWATER UTILITY LINE, CONNECTIONS, APPROVAL, OR ISSUANCE OF ANY NEW WATER METERS OR THE CREATION OF ANY NEW RETAIL UTILITY SERVICE ACCOUNTS FOR PROPERTIES LOCATED OUTSIDE THE CITY'S INCORPORATED LIMITS, BOTH THE CITY OF MCKINNEY'S, EXTRATERRITORIAL JURISDICTION AND OR CERTIFICATES OF CONVENIENCE AND NECESSITY.
AS THE COUNCIL IS AWARE, UH, THE CITY OF MCKINNEY HAS REQUESTED THE PUC TO DECERTIFY THE PUBLIC UTILITY COMMISSION, UH, TO DECERTIFY PORTIONS OF OUR CCN.
UM, WHILE THAT APPLICATION IS GOING, THIS ORDINANCE WILL PAUSE ACTIVITY IN, UH, THE PORTIONS OF OUR CCN BEING REQUESTED FOR DE-CERTIFICATION.
SO WE ARE STANDING, UH, IN SUPPORT OF THIS ITEM AND SORRY, WE ARE RECOMMENDING APPROVAL OF THIS ITEM AND I'LL STAND FOR ANY QUESTIONS.
APOLOGIZE, ANY QUESTIONS FOR MR. QUINN? IF NOT, ENTERTAIN A MOTION, MR. MAYOR, MOVE THAT WE APPROVE.
[Consider/Discuss/Act on an Ordinance Increasing the Homestead Exemption for Residents Over Age 65 and the Disabled]
QUENT.CONSIDER AN ACT ON AN ORDINANCE INCREASING THE HOMESTEAD EXEMPTION FOR RESIDENTS OVER AGE 65 AND THE DISABLED.
GOOD AFTERNOON, MAYOR AND COUNSEL.
UH, TREVOR AGAN, BUDGET MANAGER.
UM, SO THERE'S TWO ORDINANCES HERE, OR, UH, TWO ACTION ITEMS HERE.
[00:10:01]
WITH PROPERTY TAX EXEMPTIONS.UM, WE WENT OVER BOTH OF THESE, UM, AT THE WORK SESSION LAST WEEK.
UM, I DO HAVE THE PRESENTATION HERE IN CASE ANYONE NEEDS A REFRESHER.
UM, BUT ANYWAY, THIS FIRST ITEM HAS TO DO WITH, UM, INCREASING THE OVER 65 DISABLED PROPERTY TAX EXEMPTION.
UM, CURRENTLY THAT SITS AT 85,000.
UM, BUT, UH, I CAN GO THROUGH THE PRESENTATION AGAIN IF Y'ALL WOULD LIKE.
I BELIEVE OTHERWISE, UH, I'LL OPEN IT UP FOR Y'ALL'S DISCUSSION.
WELL, THE, WHY DON'T YOU JUST GO OVER THE PART OF THE PRESENTATION CONSENSUS WAS TO DO WHAT WITH THE ORDINANCE? OH, YES.
UH, I BELIEVE LAST TIME THE YEAH.
CONTENTION WAS AN INCREASE OF $5,000 TO A TOTAL OF $90,000, UM, FOR THE UPCOMING TAX YEAR 24.
JUST SO PEOPLE KNOW WHAT WE'LL BE VOTING ON.
DOES ANYONE NEED TO REVISIT THE PRESENTATION? AGAIN, WE HAD THIS FOR THOSE THAT MIGHT BE WATCHING, WE, UH, DISCUSS THIS AT LENGTH IN WORK SESSION LAST WEEK, AND CERTAINLY YOU CAN GO BACK AND LOOK AT THAT DISCUSSION TO SEE HOW WE ARRIVED.
UH, I'LL JUST, IS THERE A REMINDER TO ANYONE WATCHING NOW, MR. BARAM IS GONNA SAY THAT PER WHAT MR. HOLLOWAY SAID, THAT THIS ROUGHLY KEEPS THE AVERAGE ASSESSED VALUE OF A SENIOR LEVEL OR DISABLED HOME, UH, ABOUT THE SAME DOLLAR AMOUNT.
SO WHAT WE'RE ENDEAVORING TO DO IS FOR THE AVERAGE, UM, SENIOR DISABLED HOMEOWNER, WE'RE ENDEAVORING TO KEEP IT CLOSE TO THE SAME WITH THEIR PAYING IN CITY TAXES.
FOR ANYONE WHO'S BELOW AVERAGE, IT'LL PROBABLY HOPEFULLY SAVE THEM SOME MONEY.
AND FOR ANYONE WHO'S ABOVE AVERAGE, THEY'RE STILL GONNA HAVE A BIT OF AN INCREASE.
IS THERE A MOTION? I'LL MAKE A MOTION THAT WE APPROVE.
[Consider/Discuss/Act on an Ordinance Adopting a Property Tax Exemption for Qualifying Child-care Facilities, as Authorized under Texas Tax Code Section 11.36 and Article VIII, Section 1-R of the Texas Constitution]
AND THEN ITEM 2 4 1 7 2 5.AGAIN, WE HAD THIS PRESENTATION LAST WEEK CONSIDERING ACT ON AN ORDINANCE ADOPTING A PROPERTY TAX EXEMPTION FOR A QUALIFYING CHILDCARE FACILITY AS IS AUTHORIZED UNDER TEXAS TAX CODE SECTION ONE 1.36 AND ARTICLE, UH, EIGHT SECTION ONE R OF THE TEXAS CONSTITUTION.
SO THIS IS THE NEW ONE WE BROUGHT UP LAST WEEK, THE CHILDCARE FACILITY TAX EXEMPTION.
UM, THIS WOULD BE A PERCENTAGE OF THE VALUE THAT YOU WOULD ADOPT.
UM, AGAIN, AS A REMINDER, MINIMUM IS 50%.
UM, YOU COULD GO ALL THE WAY UP TO A HUNDRED PERCENT OF THE TOTAL VALUE.
UM, I BELIEVE DURING DISCUSSION LAST WEEK, I THINK WE LANDED ON A HUNDRED PERCENT, UM, OF THE TOTAL VALUE.
BUT AGAIN, I'LL OPEN IT UP FOR Y'ALL'S DISCUSSION, UM, AND ACTION ON THIS ITEM.
SO THAT, THAT WAS THE CONSENSUS.
AND, AND AGAIN, AS WE LOOK AT BOTH OF THESE ITEMS, AS BEEN STATED SEVERAL TIMES, IT'S A TRANSFERENCE REALLY OF YES, THAT ALLEGATION.
I THINK THIS ONE AMOUNTED TO 700 AND SOME ODD THOUSAND DOLLARS.
OH, I BELIEVE IT WAS, WAS ONLY ABOUT 19,000 BASED ON OUR NUMBERS THERE.
AND THEN THE ACTUAL TAX IS 19,000.
SORRY, WE NEED A PERCENTAGE IN THE MOTION.
ANYONE WANT TO REVISIT THE PRESENTATION? YOU KNOW, I'M JUST GONNA SAY THAT ONLY DALLAS IS, DALLAS IS THE ONLY CITY THAT'S DOING THIS RIGHT NOW.
I'M A LITTLE RELUCTANT TO BE THE CANARY IN THE COAL MINE ON THIS FOR EVERYBODY.
I'D BE GOOD WITH 50%, BUT YOU KNOW, I, THAT, THAT'S WHERE I'D BE COMFORTABLE WITH IS 50.
I'M, JUSTIN ARTICULATED IT VERY WELL, UM, LAST WEEK.
AND, AND, UH, SO AGAIN, NOT TO REHASH IT, BUT I'M STILL COMFORTABLE AT A HUNDRED PERCENT.
UH, BASED ON THE, THE AMOUNT OF THE, THE TRANSFERENCE AND THE REQUIREMENTS THAT ARE LAID OUT FOR THE PARTICIPANTS TO QUALIFY FOR THEM, BOTH THE NUMBER OF, UH, UH, INDIVIDUALS THAT THEY'RE SERVING AND MAINTAINING THE PARTICIPATION IN THE, UH, STATE'S PROGRAM.
I'M, I'M OKAY WITH A HUNDRED PERCENT.
A HUNDRED PERCENT IS WHERE, IS THERE A MOTION? I'M GOOD WITH A HUNDRED.
I'LL MAKE A MOTION THAT WE APPROVE ITEM 2 4 1 7 2 5 WITH A, UM, A HUNDRED PERCENT, A HUNDRED PERCENT TAX EXEMPTION.
ALRIGHT, THAT IS THE END OF OUR WORK SESSION OR SPECIAL SESSION, RATHER.
UM, PUBLIC COMMENTS OR THERE'S NOBODY THAT SIGNED UP FOR PUBLIC COMMENTS.
ANY COUNCIL OR MANAGER COMMENTS WITH THAT? MOTION TO ADJOURN? SO MOVED.