City of Colorado Springs - File #: 22-133

• File #: 22-133
• Version: 1
• Name: Gold Hill Mesa No. 2 MD
• Type: Resolution
• Status: Mayor's Office
• File created: 2/17/2022
• In control: City Council
• On agenda: 4/12/2022
• Final action: 4/12/2022
• Title: A resolution of the City Council of the City of Colorado Springs, Colorado approving the issuance of Gold Hill Mesa No. 2 Metropolitan District Limited Tax General Obligation Bonds Series 2022(A) in an amount not to exceed $16,000,000 and Limited Tax General Obligation Bonds Series 2022(B) in an amount not to exceed $6,700,000 located south of Highway 24 and east of 21st Street Presenter: Hannah Van Nimwegen, Senior Planner, Planning & Community Development Department Peter Wysocki, Planning and Community Development Director
• Indexes: Issuance of Debt, Metropolitan District
• Related files: 15-00705

Date	Ver.	Action By	Action	Result
4/12/2022	1	City Council	adopted	Pass
3/21/2022	1	Council Work Session	referred

Title
A resolution of the City Council of the City of Colorado Springs, Colorado approving the issuance of Gold Hill Mesa No. 2 Metropolitan District Limited Tax General Obligation Bonds Series 2022(A) in an amount not to exceed $16,000,000 and Limited Tax General Obligation Bonds Series 2022(B) in an amount not to exceed $6,700,000 located south of Highway 24 and east of 21st Street

Presenter:
Hannah Van Nimwegen, Senior Planner, Planning & Community Development Department
Peter Wysocki, Planning and Community Development Director

Body
Summary:
This is a request to approve issuance of two Limited Tax General Obligation Bonds: a $14,415,000 (not to exceed $16,000,000) Series 2022(A) (senior) bond, and a $6,100,000 (not to exceed $6,700,000) Series 2022(B) (subordinate) bond 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 senior bond will used to refinance previously issued debt from 2011 and 2015 as well as to generate additional funds to reimburse public improvements costs not previously financed. The subordinate bond will be all new money for the District with its proceeds used to reimburse additional qualifying costs.

Both sets of bonds are anticipated to be tax-exempt and externally marketed with the senior bond expected to carry an interest rate of about 5.0% (with the exact rate to be set prior to closing). The interest rate for the subordinate bond is expected to be about 5.5%.

Approval of this debt issuance will require a two-thirds majority of the entire City Council (at least six affirmative votes) due to the requested authorization exceeding 10% of the existing valuation of the property as required by City Charter Article 7-100.

This agenda item was presented at the February 22, 2022, City Council Budget Committee meeting where there was substantial conversation,...