Title
Ordinance No. 22-46 of the City of Colorado Springs, Colorado Approving and Authorizing the Execution and Delivery of the Revolving Loan Agreement Between the City of Colorado Springs, Colorado and U.S. Bank National Association and the Revolving Promissory Note of the City Relating Thereto; and Providing Other Matters Relating Thereto.
Presenter:
Tristan Gearhart, Chief Planning and Financial Officer, Colorado Springs Utilities.
Aram Benyamin, Chief Executive Officer, Colorado Springs Utilities.
Summary:
Utilities maintains a Line of Credit primarily to provide a source of cash for use only in an emergency liquidity situation. The current Line of Credit expires in September 2022. Utilities has elected to renew the existing Line of Credit with U.S. Bank National Association for a three-year term.
Background:
Utilities maintains a Line of Credit primarily to provide a source of cash for use only in an emergency liquidity situation. Utilities has maintained a Line of Credit since 2002 with the most recent Agreement for $75 million with U.S. Bank National Association. This Agreement was executed in 2016 for three years and was subsequently extended in 2019 and amended in 2020 increasing the Line from $60 million to $75 million. Utilities has elected to renew the Agreement with US Bank at $75 million for a three-year tenor.
Previous Council Action:
City Council has approved requests for the Revolving Loan Agreement Line of Credit since 2002.
Financial Implications:
The City's resulting overall cost for the Line of Credit will remain the same as a result of these actions.
City Council Appointed Board/Commission/Committee Recommendation:
The Utilities Board Finance Committee reviewed this proposed action at their July 15, 2022 meeting. Additionally, the Utilities Board also reviewed this item at the July 20, 2022 meeting.
Stakeholder Process:
N/A
Alternatives:
The City could choose not to renew the Revolving Loan Agreement fo...
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