Other/Miscellaneous Request Template (Appointments; ROW; Code Changes; Zoning Action, etc.)
Date Submitted: 8-24-20
Requesting Agency: Finance
Division:
Subject Matter Expert Name:
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Name: Guadalupe Gutierrez-Vasquez |
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Email: lupe.gutierrez@denvergov.org |
Item Title & Description:
(Do not delete the following instructions)
These appear on the Council meeting agenda. Initially, the requesting agency will enter a 2-3 sentence description. Upon bill filling, the City Attorney’s Office should enter the title above the description (the title should be in bold font).
Both the title and description must be entered between the red “title” and “body” below. Do not at any time delete the red “title” or “body” markers from this template.
title
A bill for an ordinance concerning the Airport Facilities of the City and County of Denver; authorizing the issuance of the "City and County of Denver, Colorado, for and on behalf of its Department of Aviation, Airport System Subordinate Revenue Bonds, Series 2020D" in the maximum aggregate principal amount of $750,000,000 for the purposes of defraying the costs of the Series 2020D Refunding Project, and providing other details in connection therewith; providing the amount, terms and other details of such bonds; authorizing the execution of certain related agreements; ratifying action previously taken; providing for other related matters; and providing the effective date of this ordinance.
Authorizes the Manager of Finance, Chief Financial Officer to issue City and County of Denver, for and on behalf of its Department of Aviation, Airport Subordinate Revenue Bonds, Series 2020D in an amount not to exceed $750 million for the purpose of refunding and restructuring of airport bonds and paying costs of issuance expenses. The last regularly scheduled Council meeting within the 30-day review period is on 10-20-20. The Committee approved filing this item at its meeting on 9-2-20.
body
Affected Council District(s) or citywide? Council District 11
Executive Summary with Rationale and Impact:
Detailed description of the item and why we are doing it. This can be a separate attachment.
The proposed ordinance supports various debt management objectives, which include refunding of existing bonds to realize interest cost savings, restructuring of bonds to provide relief of airport financial metrics. The 2020D bonds will be issued as fixed rate obligations. The final par-amount, lien designation for the bond restructuring (senior versus subordinate) and rate of interest will be determined on the day of pricing and is dependent on market conditions but will not exceed authorized amounts.
This ordinance request should be read in conjunction with the ordinance request being submitted simultaneously requesting authorization to issue Senior airport bonds for refunding and bond restructuring purposes (Series 2020A-C). The Department of Finance would like to preserve the flexibility to allocate the bond restructuring between the senior and subordinate liens based on what is most financially advantageous, as we closer approach the bond sale. Therefore, we are presenting, two ordinances for partially the same purpose - one authorizing senior bonds and the other authorizing subordinate bonds, but the aggregate amount of the bond restructuring will not exceed 80 million.
The proposed 2020D Bonds are not considered new money financings that would add to the Airports existing principal portfolio balance and NO new funding for projects is being sought for financing at this time. The bonds are and will continue to be paid solely from airport revenues and are not a direct obligation of the City.
Address/Location (if applicable):
Legal Description (if applicable):
Denver Revised Municipal Code (D.R.M.C.) Citation (if applicable):
Draft Bill Attached?