City of Colorado Springs - File #: 15-00632

• File #: 15-00632
• Version: 2
• Type: Ordinance
• Status: Mayor's Office
• File created: 10/2/2015
• In control: City Council
• On agenda: 11/24/2015
• Final action: 11/24/2015
• Title: Ordinance No. 15-83 of the City of Colorado Springs, Colorado 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 Commercial Paper Notes, Series A in an Aggregate Principal Amount of Not to Exceed $75,000,000 and Series B in an Aggregate Principal Amount of Not to Exceed $75,000,000 Payable 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 Two Dealer Agreements, Two Issuing and Paying Agent Agreements and Two Fee Agreements; and Providing Other Matters Relating Thereto

Date	Ver.	Action By	Action	Result
11/24/2015	1	City Council	finally passed	Pass
11/10/2015	1	City Council	approved on first reading	Pass

Title
Ordinance No. 15-83 of the City of Colorado Springs, Colorado 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 Commercial Paper Notes, Series A in an Aggregate Principal Amount of Not to Exceed $75,000,000 and Series B in an Aggregate Principal Amount of Not to Exceed $75,000,000 Payable 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 Two Dealer Agreements, Two Issuing and Paying Agent Agreements and Two Fee Agreements; and Providing Other Matters Relating Thereto
Body
From:
Jerry Forte, P.E., CEO, Colorado Springs Utilities

Summary:
The attached Ordinance addresses establishing the Utilities $150 million Commercial Paper program. Series A and Series B commercial paper notes will be issued in principal amounts not to exceed $75 million each. Required supporting Agreements are also addressed in this Ordinance.

Previous Council Action:
Not applicable. Commercial Paper is a new program for the Utilities.

Background:
The Commercial Paper program is $150 million with Series A and Series B commercial paper notes to be issued in principal amounts not to exceed $75 million each. Barclays Capital has been selected as Dealer for Series A and Goldman Sachs has been selected as Dealer for Series B. Bank of America, N.A. has been selected to provide the required Letter of Credit for the entire $150 million program.

Commercial Paper provides several important advantages to the Utilities including improved alignment between debt issuance and expected capital spending, a reduction in the frequency of long term debt issuance, and financial flexibility. The alignment of borrowing with actual capital spending delays interest expense and enables the Utilities to take advantage of low short term interest rates. With the C...