Title
A resolution of the City of Colorado Springs, Colorado repealing Resolution No. 43-21 and approving the issuance of debt by the Barnes Center Metropolitan District in the form of Limited Tax General Obligation Bonds in an aggregate amount not to exceed $1,313,796.51
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development Department
Body
Summary:
This is a request to essentially re-authorize issuance of privately placed formal debt by the Barnes Center Metropolitan District, originally approved in March of 2021, but not yet issued. The new approval will increase the not-to-exceed amount of the bonds and allow for an increase in the maximum interest rate. Other provisions and limits associated with the March 2021 approval will not change, 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 maximum interest rate is proposed to be increased from 5.0% to 6.5%, with principal amount of the bonds increasing from. $1,237,120.00 to $1,313,796.51.
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 December 14, 2021 Council Budget Committee meeting during which there were questions, but no requests for follow-up information. This item was then introduced at a January 24, 2022 Council Work Session at which time there was limited discussion and questions, followed by a consensus to place this item on the February 8, 2022 consent agenda.
Background:
City Council resolutions authorizing issuance of privately placed debt, customarily include strict limits on the amount of debt issues and the interest rate. Subsequent to the original March 2021 approval, this district has identified a limited amount of eligible additional reimbursable costs and has reviewed their interest rate op...
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