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 [2026C][2027A][2027B] In An Aggregate Principal Amount Not To Exceed $225,000,000, Payable Solely Out 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:
Adam Hegstrom, Treasury and Finance Manager, Colorado Springs Utilities
Body
Summary:
The attached Ordinance addresses the issuance of the City of Colorado Springs, Colorado, Utilities System Improvement Revenue Bonds, Series 2026C/2027A/2027B (“2026C Bonds”), which will refund all or a portion of the outstanding City of Colorado Springs, Colorado, Taxable Utilities System Improvement Revenue Bonds (Direct Pay Build America Bonds), Series 2009B-2, Series 2009D-2 and Series 2010D-4 (“BABs Bonds”), pay certain costs of issuing the Bonds; and pay the Surety Premium.
Background:
2026C Bonds: The 2026C 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...
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