Title
A Resolution Approving the Issuance of Debt by the Morningview Metropolitan District in the Form of Series 2017 Limited Tax General Obligation Bonds
(Legislative)
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning and Community Development
Body
Summary:
This is a request to approve issuance of formal debt in the principal amount of up to $1,300,000 by Morningview Metropolitan District ("District") in the form of a 2017 Limited Tax General Obligation Bond (the "Bonds"), to be repaid from property tax and other allowable District revenues. The City's Special District Policy and the Districts' service plan require that City Council's approval be obtained prior to issuing any debt.
Authorization of this debt issuance will require a 2/3rds majority of the entire City Council (at least six affirmative votes) pursuant to City Charter section 7-100.
Previous Council Action:
In 2013 City Council approved a service plan for the District by Resolution 72-13 (the "Service Plan").
This item was introduced at a City Council work session on August 21, 2017.
Background:
If approved, the proposed debt would be the first debt formally issued by the District.
Metropolitan districts are created under Colorado Statute and City Policy to finance and/or maintain certain public improvements, primarily utilizing a property tax mill levy as the revenue source. Metropolitan districts are separate legal entities from the City, but their service plans require City Council approval of all formal debt. The standard of review of the debt instruments is consistency with the District's Service Plan and all applicable laws.
Consistent with City Council's Special District Policy and the Service Plan, the debt service mill levy for residential districts is limited to no more than 30.0 mills. The District currently levies this amount for debt service.
The proposed debt is anticipated to be in the form of a tax-exempt bond issue with an interest rate ...
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