Title
A resolution authorizing issuance of debt by the Greenways Metropolitan District No. 1 in an issued principal amount not to exceed $17,500,000. (This project is located in Springs Ranch area east of the intersection of Powers Boulevard and North Carefree Circle)
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development Department
Peter Wysocki, Planning and Community Development Director
Body
Summary:
This is a request to approve issuance of formal debt in an aggregate amount not to exceed $17,500,000 in the anticipated form of marketed, tax-exempt General Obligation Limited Tax Cash Flow Bonds, Series 2021A(3) to be repaid from a combination of property tax and associated revenues. The amount of bonds is anticipated to be about $15,900,000. This debt would be issued by District No. 1, but with a pledge of revenues from District Nos. 2 and 3. The City's Special District Policy and the Districts' service plan require that City Council's approval be obtained prior to issuing any debt. These bonds are anticipated to have a "cash flow" structure, with interest accumulating in the early years, until such time as assessed valuation (AV) becomes sufficient to make interest and then principal payments.
The net revenues from these issuances will be used to fund existing and anticipated public improvements costs for this project area, including streets, trails, parks, detention facilities, water, sewer and non-potable water system improvements The draft Council resolution includes limits related to discharge dates, call dates and maximum amount for the overall debt issuance.
The Series A bonds are expected to carry an interest rate of approximately 5.00% per market conditions. The actual rate will be set immediately prior to closing.
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.
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