City of McKinney Recommended 2010 Bond Election

1. City of McKinneyRecommended 2010 Bond Election

2. Bond Election Discussion Points Background Information Bonding Capacity Bond Election

3. Background: General Obligation Bonds Money borrowed by City to finance Capital Improvements Repaid through property taxes (not necessarily increased taxes) Must be approved by voters Major source of funding for Capital Improvements Program (CIP)

4. Background: Certificates of Obligation Similar to GO Bonds Money borrowed by City to finance Capital Improvements Repaid through property taxes Doesn’t require an election, but voters may petition for a vote Both GO & CO debt are considered in bonding capacity

5. Background: 2005-2009 CIP Funding

6. Background: Uses of GO Bond Funds Almost any public capital project Streets, Traffic signals Parks, pools, open space Fire Stations, Libraries, other City Buildings Drainage Revenue Bonds generally used for water & sewer projects

7. Background: Final 2006 & 2002 Election Propositions Drainage $6,665,000 $8,380,000 Streets/Infra.* $46,600,000 $43,900,000 Municipal Facilities n/a $4,990,000 Parks & Rec. $22,080,000 $9,810,000 Airport $465,000 $1,230,000 Public Safety $7,865,000 $11,690,000 Library $7,875,000 n/a Total $91.5M $80.0M

8. Bonding Capacity:Variable Assumptions Determining factors are Tax rate for Interest & Sinking fund (currently targeted at $0.179) Assessed Valuation (AV) growth rate of 3% Projected interest rate Current debt being paid off during period Amount to leave available for future capacity

9. Bond Capacity

10. Bond Election:Council’s Role Set direction Appoint committee chairs and committee members Serve as liaisons to committees Make final decision on bond propositions, after review of Committee’s recommendations

11. Bond Election:Bond Committee’s Role Evaluate & recommend slate of projects and propositions for the bond election Form subcommittees, recruit other citizens to assist as needed Organize, fund, and manage Bond Election campaign

12. Bond Election:Staff’s Role Provide information Assist committee with their decision-making process Assist with logistics (meeting space, copying, etc.) Cannot assist with campaign but can provide educational information

13. Bond Election:Recommended Subcommittees Parks, Recreation & Open Space Infrastructure: Streets & Drainage City Facilities: Public Safety, Municipal facilities, etc Publicity Finance Executive (made up of chairs of all other subcommittees)

14. Projects:Council Direction to Committee Council may want to consider Provide project selection criteria to Committee Providing direction to Committee on “priority” projects Setting other parameters, such as minimum or maximum amounts to allocate toward certain project categories

15. Projects: Recommended Criteria Minimum or no maintenance/operational costs associated with project Saves money and/or increases efficiency of operation Takes advantage of current economic conditions through reduced cost Addresses a critical need that is not currently being met Time sensitive, i.e., takes advantage of an opportunity that may not exist in the future Leverages other funding via grants, state, county, federal or non-profits Stimulus for economic development Increases annual revenues to the city Helps accomplish one or more city goals and/or core business responsibilities

16. Council Direction Questions: 1. Do you support a Bond Election in 2010? 2. If supportive, determine four (4) names each for committee appointments. 3. Provide names by October 15, 2009.

17. Questions & Discussion