Title:
Resolution Authorizing the Banning Lewis Ranch Regional Metropolitan District No. 2 to Issue Series 2021A Limited Tax General Obligation Bonds in an Amount Estimated to be $8,595,846 and Series 2021B Subordinate Cash Flow Bonds in an Amount Estimated to be $1,040,000 (Legislative).
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning and Community Development
Body
SUMMARY:
This is a request to approve issuance of formal debt in an aggregate amount of up to $9,636,486 by the Banning Lewis Ranch Regional Metropolitan District No. 2 ("District") in the form of marketed Series A and B bond issues. The City's Special District Policy and the District's approved service plan require that City Council's approval be obtained prior to issuing any debt.
This request is expected be heard at the March 23, 2021 City Council meeting at which time 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 discussed at the February 23, 2021 Budget Committee meeting, and was introduced at the March 8, 2021 Work Session. At the Work Session, the applicants agreed to an overall combined cap of no greater than $10,560,000 for the Series A and B bonds and to a cap of no more than $1,500,000 for the Series B bonds if privately placed.
BACKGROUND:
Metropolitan districts are created under Colorado Statute and City Policy to finance and/or maintain certain public improvements in commercial and residential areas, primarily utilizing a property tax mill levy as the revenue source. These districts are a separate legal entity from the City, but their service plans and the City's Special District Policy require City Council approval of all formal debt. The standard of review of the debt instruments is consistency with the service plan and all applicable laws.
Banning Lewis Ranch Regional Metropolitan District No. 2 was author...
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