Title
An Ordinance of the City of Colorado Springs, Colorado Providing for the Refunding of Certain Outstanding Utilities System Revenue Bonds of the City; Providing for the Issuance and Sale of the City of Colorado Springs, Colorado, Utilities System Refunding Revenue Bonds, Series [2025c][2026a][2026b] in an Aggregate Principal Amount Not to Exceed $225,000,000, 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 Agreement, a Bond Purchase Agreement, and an Official Statement Related Thereto; and Providing Other Matters Relating Thereto.
Presenter:
Travas Deal, Chief Executive Officer, Colorado Springs Utilities
Body
Summary:
Background:
2025C Bonds: The 2025C Bonds will refund all or a portion of the outstanding BABs bonds. The ordinance provides authorization to the City to execute the transaction if market conditions are favorable.
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:
The current refunding of the BABs bonds will be completed if it will result in a net present value debt service savings to the City after considering all costs of the refunding transaction, or if it will alleviate the risk of further sequestration of or impacts to the Build America Bond Credit applicable to the BABs bonds.
City Council Appointed Board/Commission/Committee Recommendation:
The proposed transaction was presented to the Utilities Board Finance Committee in January and June 2025 through the Plan of Finance overview. Additionally, the broader Utilities Board of Directors received a similar briefing at the June 2025 Board meeting.
Stakeholder Process:
N/A
Alternatives:
The City could choose not to issue the 2025C Bonds. ...
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