To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Michael J. Hyman, Town Attorney
Title
Dawson Trails Metropolitan District No. 1 - Review of Proposed Bond Issuance
Body
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Executive Summary
Per section 11.02.110 of the Castle Rock Municipal Code, all metro districts within the Town must submit proposed financings of district debt to the Town Council for review and comment.
Background
Dawson Trails Metropolitan District No. 1 (the “District”) has requested that the Town Council review and, if appropriate, comment upon the proposed issuance of its Subordinate Limited Tax General Obligation Bonds (the “Bonds”). The approximate principal amount of the Bonds is $66,000,000, with an estimated interest rate of 9.25%, and a 30-year term. The Bonds will allow the District to fund miscellaneous public improvements that are authorized by the District’s Service Plan.
The principal amount of the Bonds is well within the District’s debt limit of $1,062,390,000, leaving the District with a remaining debt limit of $854,743,112. Likewise, the estimated interest rate and term of the Bonds are within the Service Plan limits of 18% and 50 years, respectively. Lastly, the District will not be exceeding its maximum debt mill levy is 64.44 mills, which levy is subject to future assessed valuation adjustments by the State.
Staff Recommendation
Based on the District’s submittal, Town Staff finds that the Bonds comply with the Service Plan and Section 11.02.110 of the Town Code. Town Staff recommends that the District be allowed to move forward with the issuance of the Bonds as proposed without further comment.
Proposed Motion
“I move to approve the as introduced by title.”
Attachments
Attachment A: Letter to Town of Castle Rock
Attachment B: Certificate Concerning District Financing