Title
Ordinance No. 18-119 adopting a plan for the defeasance and payment of the City of Colorado Springs Airport System Revenue Refunding Bonds, Series 2014, issued by the City of Colorado Springs, Colorado, acting by and through its Airport Enterprise; and authorizing and approving related documents and actions in connection therewith
Presenter:
Charae McDaniel, Chief Financial Officer
Tom Florczak, Deputy City Attorney
Greg Phillips, Director of Aviation
Body
Summary:
The City of Colorado Springs would like to defease its outstanding Series 2014 Airport System Revenue Refunding Bonds (the 2014 Bonds). The 2014 Bonds are presently non-callable but the City intends to purchase escrow securities to lawfully defease the bonds without contractual breach. Payments would thereafter be made from the escrow until the final payment redemption on December 15, 2023.
In addition to adopting the plan to defease the Series 2014 Bonds, the Ordinance provides Supplemental Appropriations to the Airport Gross Revenue Fund and the Airport Bond Fund in the total amount of $6,818,559 for the funding of the escrow account. The sources of funds are reserve accounts that were required by the 2014 Bond Ordinance, which can now be released, and the available fund balance in the Airport Bond Fund. These are outlined in the Financial Implications sections of this memo. The remaining $491,441 needed will be generated within the escrow account as result of interest on the account.
The 2018 payment on the Series 2014 Bonds will be paid, as scheduled. This appropriation authority is already included in the 2018 Budget. The defeasance will occur in conjunction with the last payment made on the Series 2014 Bonds, which will occur in December.
Previous Council Action:
City Council approved Ordinance 13-79 on December 10, 2013, authorizing the issuance of the City of Colorado Springs, Colorado, Airport System Revenue Refunding Bonds, Series 2014, for the purpose of refun...
Click here for full text