Title
Resolution authorizing issuance of debt by the Flying Horse Metropolitan District No. 3.
(Legislative)
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development Department
Body
Summary:
This is a request to approve issuance of debt in an approximate aggregate amount not to exceed $20,000,000 in the form of General Obligation Limited Tax Refunding Bonds, Series 2019 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 net revenues from this issuance will be used solely to refund a portion of existing 2005 debt obligations, with the exact amount of this issuance to be determined at closing.
The City Council Budget Committee had requested an analysis of the full principal and interest cost of the existing debt, under its present terms and conditions, compared with this refunding alternative. They had also asked for the current accumulated balances of the existing 2005 bonds. Verbal responses were provided by the applicant's team at the May 28, 2019 Work Session introducing this item. District representatives also responded to questions related to the term of these bonds, the overall time period a debt service mill levy could be in effect for these Districts, and the impact of this refunding option to taxpayers over the life of the bonds, when compared with the option of not refunding the existing debt. District representatives stated that their "net present value" analysis shows a slightly higher cost over time, but the impact is essentially neutral. They further stated that the primary purpose of this refunding is to restructure a share of the current debt to new form with third-party investors
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 ...
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