Title
A Resolution of the City of Colorado Springs, Colorado regarding the City’s intention to issue tax-exempt obligations.
Presenter:
Scott Shewey, Acting Chief Planning and Finance Officer, Colorado Springs Utilities
Aram Benyamin, Chief Executive Officer, Colorado Springs Utilities
Body
Summary:
The attached Resolution enables the Utilities to utilize proceeds from the upcoming 2020C bond issue to finance capital expenditures incurred from June 1, 2020 through the bond issuance date.
Background:
The 2020C Bonds will provide for the extension, betterment, other improvement and equipment of the City of Colorado Springs Utilities System. Normally the Utilities utilizes bond proceeds to reimburse capital expenditure going forward from the bond issuance date. The Reimbursement Resolution provides the Utilities the option to reimburse capital expenditures incurred from June 1, 2020 through the bond issuance date. This provides greater flexibility in managing available cash to operate the Utilities.
Previous Council Action:
N/A
Financial Implications:
If the Utilities experiences a substantial cash shortfall due to COVID-19 impacts or other financial conditions, a source of additional unrestricted cash would be reimbursement of these prior capital expenditures.
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
The City could choose not to approve the Reimbursement Resolution.
Recommended Action
Proposed Motion:
Approval of proposed resolution.
Summary of Ordinance Language
N/A