Title
Resolution authorizing the Banning Lewis Ranch Metropolitan District No. 3 to Issue Series 2020 General Obligation Limited Tax Refunding Bonds in an Aggregate Principal Amount Not to Exceed $11,000,000.
(Legislative)
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning and Community Development
Peter Wysocki, Director of Planning and Community Development
Body
Summary:
This is a request to approve issuance of formal debt in an aggregate principal amount of approximately 10,000,000 by the Banning Lewis Ranch District No. 3 ("District") in the form of a refunding bond issue. 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.
Refunding of the Series 2015A and B bonds previously issued by his District is projected to result in a net present value benefit to the District taxpayers, and will provide the resident board of directors of this District with an opportunity to reduce the debt service mill levy, at their discretion.
This request was introduced at the October 12, 2020 City Council Work Session at which time there were no additional questions or comments.
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 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 City's 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 Series 2020 bonds are anticipated to be non-taxable, marketed to third par...
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