Title
An Ordinance of the City of Colorado Springs, Colorado Approving and Authorizing the Execution and Delivery of the Standby Bond Purchase Agreement Among the City of Colorado Springs, Colorado, Computershare Trust Company, N.A., as Tender Agent, and TD Bank, n.a., the Fee Agreement Between the City of Colorado Springs, Colorado and TD Bank, n.a., and the Official Statement for the Utilities System Revenue Bonds Previously Issued by the City to which the Agreement Relates; Ratifying Certain Action Heretofore Taken.
Presenter:
Travas Deal, Chief Executive Officer, Colorado Springs Utilities
Body
Summary:
The attached Ordinance addresses the execution of a Standby Bond Purchase Agreement ("SBPA") for the Variable Rate Demand Utilities System Subordinate Lien Improvement Revenue Bonds, Series 2010C ("Bonds"), and the related fee agreement. The current SBPA for the Bonds is set to routinely expire this fall. Utilities has elected to replace the existing 2010C SBPA agreement provider with TD Bank for a term of five years.
Background:
The Bond Ordinance for the City's 2010C Bonds require that the City "maintain a Liquidity Facility in full force and effect at all times when the bonds are bearing interest at a Variable Rate other than Auction Mode Rate, except as otherwise provided in Section 1212 of the Bond Ordinance". A Standby Bond Purchase Agreement is one of the acceptable financial instruments to provide liquidity for the City's variable rate bond issues.
Previous Council Action:
City Council approved the Ordinance authorizing the 2010C bonds as well as all corresponding past Standby Bond Purchase Agreements associated with this issuance.
Financial Implications:
The City's resulting overall cost for liquidity will decrease as a result of these actions.
City Council Appointed Board/Commission/Committee Recommendation:
The Utilities Board Finance Committee reviewed this proposed action at their June 16, 2025 meeting. Additionally, th...
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