Colorado Springs authorizes up to $225 million in utility bond refinancing
The council approved an authorization for city officials to refinance eligible portions of three outstanding bond issues if the transaction meets an economic-benefit condition.
Colorado Springs City Council approved an authorization allowing city officials to refinance up to $225 million in eligible portions of three outstanding utility bond issues, if the transaction meets an economic-benefit test.
The council passed Ordinance 26-49 on Sept. 22, authorizing one or more bond series designated 2026C, 2027A and/or 2027B. The bonds may refinance all or part of outstanding Series 2009B-2, 2009D-2 and 2010D-4. City officials will select the specific bonds and amounts later.
The ordinance allows a current refunding if it produces combined net present-value debt-service savings or other economic benefits. Those benefits could include reducing exposure to further sequestration or other impacts to the credit associated with Build America Bonds, a type of federally subsidized municipal bond.
Repayment would come solely from Utilities System net revenues after operating and maintenance expenses—not from the city’s general funds or its full faith and credit. The council meeting video records the ordinance’s passage by a 9-0 vote.