Title
Resolution authorizing issuance of debt by the Flying Horse Metropolitan District No. 2.
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development Department
Body
Summary:
This is a request to approve issuance of formal debt in an approximate aggregate amount not to exceed $52,000,000 in the form of General Obligation Limited Tax Refunding Bonds, Series 2020A and Series 2020B to be repaid from a combination of property tax and associated revenues. 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 net revenues from these issuances will be used to refund existing Series A and B bonds issued by District No. 2 in 2013, and to refund the remaining balance of the outstanding 2005 bonds issued by District No.1, currently held by this developer. The remaining available proceeds are proposed to be used to repay additional developer advances of funds to this district, along with additional project costs that are expected to be certified in the future.
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 rated and carry an average interest rate of 4.12%. The Series B bonds will be subordinate and unrated, and will operate as "cash flow bonds" with a significantly higher expected interest rate of 8.5%. Because this District operates under a pre-2006 service plan, its maximum debt service mill levy imposition term could extend beyond the 40-year limit now in place for most metropolitan districts with residential properties.
Approval of this debt issuance will require a 2/3rds majority of the entire City Council (at least six affirmative votes) pursuant to City Charter Article 7-100.
This agenda item was introduced at a May 11, 2020 Council Work Session. In response to discussion/direction provided at that meeting, modifications hav...
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