Title
A resolution of the City Council of the City of Colorado Springs, Colorado approving the issuance of Dublin North Metropolitan District No. 2 Limited Tax General Obligation Loans Series 2022(A-1) and Series 2022 (A-2) in an aggregate amount not to exceed $5,500,000 for properties located north of Dublin Boulevard and east of Templeton Gap Road
Presenter:
Carl Schueler, Comprehensive Planning Manager
Peter Wysocki, Planning and Community Development Director
Body
Summary:
This is a request to approve issuance of two Limited Tax General Obligation Loans in a total amount of about $5,065,000. These loans will be issued by Dublin North Metropolitan District No. 2 with a pledge of revenues from District No. 3. The loans will be repaid from a combination of property tax and associated revenues. This refinancing is expected to reduce the current debt service mill levy from 33.3398 to about 25.250 mills.
The City's Special District Policy and the District's service plan require that City Council's approval be obtained prior to issuing any debt.
The proceeds of these loans will be used to entirely refinance previously issued 2018 debt of this District in the form of A and B bonds, along with a subordinate note. Additionally, about $70,000 of these proceeds will be used to reimburse advances for landscaping associated with the final phase of this project.
The larger 2022 Series A-1 loan will initially be taxable and then convert to being tax-exempt after 2023. The reason for the initial taxable status of the A-1 loan has to do with a call date still being in effect for one of the 2018 issuances. Both the A-1 and A-2 loans have been externally marketed through the solicitation of bids from banks. Interest rates are expected to be about 3.0% after the A-1 loan converts to tax-exempt status (with the exact rate to be set prior to closing).
Approval of this debt issuance will require a two-thirds majority of the entire City Council (at least six af...
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