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File #: RES 2020-017    Version: 1 Name:
Type: Resolution Status: Public Hearing
File created: 2/12/2020 In control: Town Council
On agenda: 2/18/2020 Final action:
Title: Resolution Approving an Amendment to the Service Plan for the Bella Mesa Metropolitan District and Certifying Compliance with Town Code Section 11.02.110
Attachments: 1. Resolution, 2. Exhibit A - Term Sheet Bella Mesa MD (02-06-2020), 3. Memo to Town Council re Bella Mesa Service Plan Amendment and Certification, 4. Exhibit B - District Certification re Service Plan Amendment (SIGNED), 5. Exhibit C - Bella Mesa MD Finance Plan (02-05-2020), 6. Presentation

To:                     Honorable Mayor and Members of Town Council

 

From:                     Robert J. Slentz, Town Attorney

 

Title

Resolution Approving an Amendment to the Service Plan for the Bella Mesa Metropolitan District and Certifying Compliance with Town Code Section 11.02.110

Body

________________________________________________________________________________

 

Executive Summary

 

This Resolution is presented to Town Council to satisfy the requirement in the Municipal Code that any proposed metropolitan district general obligation bond issuance be reviewed by Town Council prior to issuance. The Bella Mesa Metropolitan District (District) Service Plan was approved by the Town Council in 2004, however, the District has not undertaken capital development or issued bonds. The District encompasses 406 acres generally north and east of Mesa Middle School.  In the course of staff review of the District’s proposed financing, we requested that the District update the development projections in the Service Plan which are key to establish the ability of the District to retire its debt.  Consequently, in addition to approving the proposed financing, the Resolution effects a limited modification of the Service Plan.

 

The District is proposing to issue approximately $26 million in 5.5% general obligation bonds to fund infrastructure development. Repayment of the bonds will come principally from a 55.66 mill levy which is the cap currently imposed in the Service Plan. It is anticipated that 817 residential units will be absorbed within the District over an eight-year period. The bonds are projected to be paid within 30 years, but in any event, the principal and interest will discharge in 40 years. This restriction applies to any refunding of the initial issue, however, it is recognized that in the future, a resident-controlled District Board may seek Council to relax the 40-year limit to support a refunding at a lower interest rate.

 

The District representatives were responsive to the issues raised by staff with the initial proposal and the Resolution contains reasonable restrictions and limitations on the District bonds.

 

Staff Recommendation

 

Staff recommends approval of the Resolution as presented.

 

Proposed Motion

 

“I move to approve the Resolution as presented.”

 

Attachments

 

Attachment A: Resolution