Title
Ordinance No. 20-34 of the City of Colorado Springs, Colorado providing for the refunding of certain outstanding Utilities System Revenue Bonds of the City; providing for the extension, betterment, other improvement and equipment of the City of Colorado Springs Utilities System; providing for the issuance and sale of the City of Colorado Springs, Colorado, Utilities System Refunding Revenue Bonds, Series 2020A in an aggregate principal amount not to exceed $285,000,000, the City of Colorado Springs, Colorado, Utilities System Refunding Revenue Bonds, Series 2020B (Private Activity) in an aggregate principal amount not to exceed $68,500,000 and the City of Colorado Springs, Colorado, Utilities System Improvement Revenue Bonds, Series 2020C in an aggregate principal amount not to exceed $110,000,000 payable solely out of the Net Revenues to be derived from the operation of the City of Colorado Springs Utilities System; authorizing the execution by the city of a Paying Agent Agreement, Escrow Agreements, a Bond Purchase Agreement and an Official Statement related thereto; and providing other matters relating thereto.
Presenter:
Scott Shewey, Acting Chief Planning and Finance Officer, Colorado Springs Utilities
Aram Benyamin, Chief Executive Officer, Colorado Springs Utilities
Body
Summary:
The attached Ordinance addresses the issuance of the City of Colorado Springs, Colorado, Utilities System Refunding Revenue Bonds, Series 2020A (“2020A Bonds”), which will refund the City of Colorado Springs, Colorado, Refunding Revenue Bonds, Series 2009A (“2009A Bonds”), the City of Colorado Springs, Colorado, Refunding Revenue Bonds, Series 2010A-1 (“2010A-1 Bonds”) and 2010A-2 (“Series 2010A-2 Bonds”), and the City of Colorado Springs, Colorado, Utilities System Improvement Revenue Bonds, Series 2010B-2 (“2010B-2 Bonds”); pay certain costs of issuing the Bonds; and pay the Surety Premium.
The attached Ordinance also addresses the issuance of the City of Colorado Springs, Colorado, Utilities System Refunding Revenue Bonds, Series 2020B (Private Activity) (“2020B Bonds”), which will refund the City of Colorado Springs, Colorado, Utilities System Revenue Bonds, Series 2010D-2 (“2010D-2 Bonds”); pay certain costs of issuing the Bonds; and pay the Surety Premium.
The attached Ordinance also addresses the issuance of the City of Colorado Springs, Colorado, Utilities System Improvement Revenue Bonds, Series 2020C (“2020C Bonds”), which will provide for the extension, betterment, other improvement and equipment of the City of Colorado Springs Utilities System; pay certain costs of issuing the Bonds; and pay the Surety Premium.
Background:
2020A Bonds: The 2009A Bonds, the 2010A-1 Bonds, the 2010A-2 Bonds and the 2010B-2 Bonds are callable from current bondholders and it has been determined that the refunding of these bonds is beneficial to the City. The City will potentially receive a net present value savings on current bond expenses.
2020B Bonds: The Series 2010D-2 Bonds are callable from current bondholders and it has been determined that the refunding of these bonds is beneficial to the City. The City will potentially receive a net present value savings on current bond expenses.
2020C Bonds: The 2020C Bonds will provide for the extension, betterment, other improvement and equipment of the City of Colorado Springs Utilities System. It has been determined that the issuance of these bonds is beneficial to the City at this time.
Previous Council Action:
City Council approves a similar Ordinance for each new bond issue, whether for capital additions, capital improvement projects or refunding of a prior bond issue or issues.
Financial Implications:
Under present financial market conditions:
With the issuance of the 2020A Bonds the City will potentially achieve a net present value savings on the refunding of the 2009A Bonds, the 2010A-1 Bonds, the 2010A-2 Bonds, and the 2010B-2 Bonds considering current interest and principal expenses.
With the issuance of the 2020B Bonds the City will potentially achieve a net present value savings on the refunding of the 2010D-2 Bonds considering current interest and principal expenses.
With the issuance of the 2020C Bonds the City will increase principal and interest expense payments for the life of the bonds.
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
The City could choose not to issue the 2020A Bonds, the 2020B Bonds and the 2020C Bonds. This alternative would not be advantageous to the City at this time.
Recommended Action
Proposed Motion:
Approval of proposed Ordinance.
Summary of Ordinance Language
An Ordinance of the City of Colorado Springs, Colorado providing for the issuance and sale of the City of Colorado Springs, Colorado, Utilities System Refunding Revenue Bonds, and for the issuance and sale of Utilities System Improvement Revenue Bonds to provide for the extension, betterment, other improvement and equipment of the City of Colorado Springs Utilities System.