McKinney City Council approves $30M in certificates for library and wastewater upgrades

The McKinney City Council convened on March 18, 2025, to discuss several key financial matters, primarily focused on the issuance and sale of tax unlimited pledge water works and sewer system revenue certificates of obligation for the year 2025. Chief Financial Officer Mark Holloway presented a comprehensive overview of the city's bond issuance plans, which are essential for funding various capital improvement projects.

The council reviewed four significant items related to the bond issuance. The first item involved the authorization of approximately $37 million in general obligation bonds, primarily allocated for street improvements ($23 million), parks and recreation ($2.5 million), and public safety initiatives ($11.5 million). This issuance is part of the ongoing efforts to utilize funds authorized by voters in previous elections, particularly from the 2019 authorization.

Additionally, the council discussed a refunding plan for existing general obligation bonds from 2014 and 2015, which is expected to yield savings of nearly $2.7 million over the remaining life of the bonds. This strategic move aims to optimize the city's debt service obligations.

The second item on the agenda was the issuance of $30 million in certificates of obligation, designated for the renovation of the Roy and Helen Hall Library ($20 million) and the impact facility ($10 million). This funding is crucial for enhancing community resources and services.

Furthermore, the council addressed a $25 million issuance for the water and sewer fund, which includes $6.2 million for water improvements and $14.6 million for wastewater projects. A small refunding of $2.9 million from a 2015 issuance will also be incorporated into this funding, resulting in additional savings.

Holloway noted that the city is in the process of obtaining ratings for these issuances from Standard and Poor's and Moody's. The city currently holds a AAA rating for general obligation bonds and a AA+ rating for water and sewer revenue bonds, indicating strong financial health and creditworthiness.

The council's discussions underscored the city's commitment to advancing infrastructure projects while maintaining fiscal responsibility. The meeting concluded with a clear path forward for the proposed bond issuances, setting the stage for future improvements in McKinney's public services and facilities.