Colorado Springs council to consider up to $695 million in utility-system bonds
The proposed authorization would fund Utilities capital projects and fiber-network work and could refinance existing Build America Bonds; the council has not taken final action.
Colorado Springs City Council is scheduled to consider ordinances authorizing up to $695 million in Utilities System revenue bonds on Sept. 22. The proposal includes up to $470 million for improvements and up to $225 million to refinance existing debt.
The Sept. 22 council agenda lists both ordinances for second presentation. Council approved them on first reading Sept. 8 in a unanimous 9-0 consent-calendar vote, according to the meeting minutes. That vote advanced the ordinances but did not authorize an issuance.
The improvement authorization covers up to $330 million in tax-exempt Series 2026A bonds and up to $140 million in taxable Series 2026B bonds. Utilities’ financing presentation estimates issuing $280 million of Series 2026A and $125 million of Series 2026B in November to help fund the debt-backed portion of about $396 million in planned capital spending from February through September 2027.
The records describe Series 2026A as funding extensions, improvements and equipment for the Utilities System. Series 2026B is tied to the fiber-network project, which the presentation says had incurred about $244.5 million and reached approximately 71,092 addresses at the time of the presentation.
The separate refunding authorization could refinance all or part of outstanding Build America Bonds, including portions of the 2009B-2, 2009D-2 and 2010D-4 series. The refunding ordinance conditions the action on projected savings after costs or other economies, such as reducing exposure to changes in federal subsidy payments.
The bonds would be repaid from net pledged Utilities System revenues rather than the city’s general fund. The improvement-bond ordinance cites an estimated $4.48 million annual increase in Utilities System operating and maintenance expenses tied to the bond-funded spending and says 2025 net pledged revenues met a 130% coverage test for outstanding and proposed debt.
The records do not specify a customer debt-service charge, utility-rate increase or bill impact. Final amounts, interest rates, sale prices, maturities, repayment schedules and the specific debt to be refunded would be set later in a supplemental Public Securities Act certificate.