Title
Resolution Authorizing the Sands Metropolitan District No. 2 to Issue Debt in the form of Limited Tax General Obligation Bonds in Principal (par) Amount Not to Exceed
$12,315,000
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development
Body
Summary:
The attached resolution will approve the issuance by the Sands No. 2 Metropolitan District ("the District") of bonds in an aggregate amount not to exceed $12,315,000 and the related bond documents. The District is proposing to issue this debt in the form of Limited Tax General Obligation Bonds, Series 2020. These bonds will be privately placed with this developer and have a maximum annual interest rate of 5.5%.The debt service mill levies and specific ownership taxes for the Sands Metropolitan District Nos. 1 and 3 (the "Districts") are also be pledged toward this debt by associated agreements.
The net revenues from these issuances will be used to reimburse costs for existing public improvements and related expenditures. The term of these bonds is anticipated to be 30 years, and they are structured to have a discharge date of no later than 2057 consistent with the maximum 40 year debt mill levy imposition term as required by the service plan for these Districts,
The City's Special District Policy requires that City Council approval be obtained prior to issuing of any formal debt for metropolitan districts. These bond issues are contemplated by the District's Council-approved service plan. Copies of the bond documents and associated supporting materials are attached.
This agenda item was introduced at a September 8, 2020 Council Work Session. Councilman Knight requested additional clarification regarding the proportional allocation of costs, by individual district.
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
Background:
Metropolitan district...
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