Title
Authorization of Dublin North Metropolitan District No. 2 to Issue up to $2,000,000 in Debt as a Limited Tax General Obligation Loan
Body
From:
Peter Wysocki, Planning and Development Director, Planning and Development Department
Summary:
This introduces a request to approve issuance of formal debt in an aggregate amount of up to $2,000,000 by the Dublin North Metropolitan District No. 2 ("District") in the form of a bank loan. 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. Formal City Council action on this item would occur on November 10, 2014.
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.
Previous Council Action:
The District was established by election in May 2008, following approval by Council of a service plan earlier that year (Resolution No. 53-08). In 2012, Council made special appointments to the board of this District because it no longer had any eligible sitting board members. Council has approved a variety of land use actions for this project area during the past few years.
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 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.
The proposed debt instrument, which is a loan agreement, is attached. This debt will be in the form of a tax-exempt bank-held loan that will have a term of approximately ten years and will be struct...
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