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McKinney financial staff says $30 million for airport eastside infrastructure closed; additional bond sales planned
Summary
City finance staff reported that $30 million in short-term sales tax revenue bonds for the McKinney National Airport eastside infrastructure project have closed and that further sales for related land and infrastructure, general obligation and water/wastewater financings are scheduled this spring and summer.
Mark Holloway, the city of McKinney’s chief financial officer, told the City Council on April 22 that the financing for the McKinney National Airport eastside infrastructure project is in place and that additional related financings are scheduled this year.
Holloway said the airport financing used short-duration sales tax revenue bonds with a call feature because the city expects to replace those notes with a long-term TIFIA loan from the federal government, with approval anticipated in 2026. "That financing is closed. Dollars 30,000,000 have been received," Holloway said.
Holloway also reported Economic Development Corporation financing tied to airport work and land purchase: $62,400,000 in sales tax revenue bonds, of which $40,000,000 is for land purchase and $22,400,000 for airport infrastructure. Council and board approval for those financings occurred on March 18; Holloway said the bonds were sold in April and the planned closing date for the EDC sale is April 30.
The finance update also covered the city’s regularly scheduled capital financing. Holloway said the city intends two general obligation and certificates of obligation sales totaling about $67,000,000 (roughly $37,000,000 in G.O. and $30,000,000 in C.O.); $11,500,000 of the G.O. amount is earmarked for public safety projects, roughly $2,500,000 for parks design at Towne Lake, and about $23,000,000 for roads and streets. He said the city plans to take advantage of a refunding that is expected to produce about $2,000,000 in net present-value savings.
Holloway described $25,000,000 in water and wastewater revenue bonds as well, noting project-level breakdowns he characterized in his presentation: $6,200,000 for water improvements, $14,600,000 for wastewater, and just over $4,000,000 for combined projects to reach the $25,000,000 total. He said rating calls with S&P and Moody’s were held April 16 and the city expected to receive ratings within the week; the planned market dates for the G.O./C.O. and water sales are May 20–21 with closing in mid-June.
Holloway reiterated schedule details and the conservative amortization approach: the EDC bonds have a 30-year amortization; the short-term airport notes were structured to be callable once the anticipated TIFIA loan is available. Council members asked about remaining authorizations from a 2019 bond authorization; Holloway said the 2019 authorization would be nearly exhausted and that about $5,000,000 of the 02/2019 authorization would remain after the planned issuances, with additional issuance anticipated next fiscal year.
No formal council action on new bond parameters was recorded during the presentation; Holloway stood for questions after the report.
