Finance Item/Grant Request Template
Date Submitted: 5-26-21
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 Revenue Bonds, Series 2021A" in the aggregate principal amount of $15,800,000 for the purposes of effectuating the Series 2021A Refunding Project and the "City and County of Denver, Colorado, for and on behalf of its Department of Aviation, Airport System Revenue Bonds, Series 2021B" in the aggregate principal amount of $13,100,000 for the purposes of effectuating the Series 2021B 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) for and on behalf of its Department of Aviation, to issue City and County of Denver Airport Revenue Bonds, Series 2021A-B in an amount not to exceed $29 million for the purpose of activating a change to the Bond Reserve Requirement provision within the Airport’s General Bond Ordinance. The last regularly scheduled Council meeting within the 30-day review period is on 7-12-21. The Committee approved filing this item at its meeting on 6-9-21.
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 would authorize a refunding, by means of a bond exchange or redemption, of existing Series 1992F-G Airport Revenue Bonds in order to activate a Bond Reserve Requirement provision change within the Airport’s General Bond Ordinance. The Bond Reserve Requirement provision was authorized by Council in 2018 however, this change can only be implemented when no Bonds issued prior to August 1, 2000 remain outstanding. The refunding of the 1992F-G bonds is necessary to satisfy the condition referenced above.
The change in calculation methodology would allow for a lower Bond Reserve Requirement which would allow for release of approximately $113.8 million from the Bond Reserve Fund to fund portion of existing CIP needs and would bring in-line the Bond Reserve Requirement with industry standards.
The terms of the 2021A-B bonds will remain the same as the 1992F-G bonds, with the exception of the change in Series designation (1992F-G to 2021A-B).
The proposed 2021A-B Bonds are not considered new money financings that would add to the Airports existing principal portfolio balance. The bonds are and will continue to be paid solely from airport revenues and are not a direct obligation of the City.
Type (choose one: Grant; Supplemental; Fund Creation; Fund Rescission; Fund Transfer; Appropriation; Other):
Amount:
Budget Year:
Fund and Funding Source (Fund/Org/Grant Number, if applicable):
Grantor (if applicable):
Fund Matching Requirements (if applicable):
Fiscal Impact: