Title
AN ORDINANCE AUTHORIZING THE ISSUANCE BY THE CITY OF COMMERCE CITY, COLORADO OF ITS SALES AND USE TAX REVENUE REFUNDING BONDS, SERIES 2015; AND PROVIDING OTHER DETAILS IN CONNECTION THEREWITH.
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Summary and Background Information:
· Original 2005 Series Bonds were issued on February 20, 2005 for design/construction for the Prairie Gateway project
· Original 2006 Series Bonds were issued on March 28, 2006 to finance public infrastructure improvements related to Prairie Gateway project
· Interest rates have decreased since the original bond issuance in 2005 and 2006
· Issuance of the 2015 Refunding Bonds will result in an estimated savings of $2.5 - $4.0 Million. Interest rates are lower and savings are estimated to be better than the presentation on January 12 indicated.
· Parameters allow us to refund with 3% savings, my target is 5% savings
· Original plan called for only refunding a portion of the 2006 bonds; however looking at current rates and the savings the plan is to refund all 2005 and 2006 maturities.
· To issue the refunding bonds in March 2015 it requires that the bond ordinance be presented on Feb 2 and March 2 for Council approval
· The attached Registrar Paying Agreement, Continuing Disclosure Certificate, Bond Purchase Agreement and Escrow agreement are in draft form but provide a good sense of what will be in the final documents on March 2. There are still items that will be updated in the agreements after the bond pricing and before closing.
· The Preliminary Official Statement is long and still in rough draft form; so it is available for review if anyone wishes, but it won't be sent out until the packet for the March 2 meeting goes out.
Staff Responsible (Department Head): Sheryl Carstens
Staff Member Presenting: Sheryl Carstens
Financial Impact: None
Funding Source: N.A.
Suggested Motion: Approval of Ordinance 2044