Title
A resolution authorizing the Stetson Ridge Metropolitan District No. 3 to issue debt in the form of General Obligation Limited Tax Refunding and Improvement Bonds Series 2020A and Subordinate General Obligation Limited Tax Bonds, Series 2020B (3) in an aggregate total principal amount not to exceed $10,500,000.
(Legislative)
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development
Peter Wysocki, Director, Planning and Community Development
Body
Summary:
The attached resolution will approve the issuance by the Stetson Ridge No. 3 Metropolitan District ("the District") of bonds in an aggregate amount anticipated to be $8,130,000 and the related bond documents. The District is proposing to issue this debt in the form of General Obligation Limited Tax Refunding and Improvement Bonds Series 2020A senior bonds in an anticipated amount of $7,010,000 and Subordinate General Obligation Limited Tax Bonds, Series 2020B (3) in an anticipated amount of $1,119,000.
The net revenues from these issuances will be used to refund existing bonds issued by this District in 2012. These have a remaining balance of about $4.9 Million. The remaining available proceeds are proposed to be used to repay additional developer advances of funds expended for the installation of public infrastructure within the District.
Both the Series 2020A bonds and 2020B bonds are anticipated to be tax-exempt and externally marketed. The Series A bonds are anticipated to be investment grade rated and be publically sold at true interest rate of approximately 3.03%. The Series B bonds will be subordinate and unrated, and will operate as "cash flow bonds" with a higher interest rate of approximately 8.0%. The terms of these bonds will be limited to the 40-year maximum debt service mill levy imposition term applicable to this District.
The City's Special District Policy requires that City Council approval be obtained prior to issuing of any formal deb...
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