Bond Debt
Bond Debt
On December 17, 2021, the District issued $45 million in General Obligation Limited Tax Bonds for the purpose of reimbursing the Developer for constructing Public Improvements pursuant to agreements between the Developer and the District. The Series 2021 Bonds are term bonds due December 01, 2051, with an interest of 5.25%, paid semiannually on June 1 and December 1. The bonds are payable from Pledged Revenue, including the District's covenant to levy the Required Mill Levy on all taxable property within the District to pay for debt scheduled payments as well as a portion of specific ownership taxes collected by the District as a result of the imposition of the required mill levy.
The Indenture of Trust Agreement for the 2021 Bonds establishes a Maximum Debt Mill levy the District is permitted to impose on taxable property within the District for the payment of debt. The Maximum Debt Mill Levy is 50 mills, as adjusted by the State of Colorado for changes in the ratio of taxable valuation to assessed valuation of real property since January 01, 2017. The change in assessment ratios from 2017 to 2026 caused the Maximum Debt Levy for the 2027 collection year to be adjusted to 56.377 mills.
No debt-to-maturity schedule is provided for the Series 2021 Bonds because semi-annual payments due on these Bonds are payable only to the extent of net Pledged Revenue. |  |
The Series 2021 Bonds are subject to redemption prior to maturity at the option of the District in whole, or in multiples of $1,000 on December 1, 2026 and on any date thereafter at the following redemption price plus accrued interest to the redemption date:
| Date of Redemption | Redemption Premium (%) | Redemption Premium ($) |
|---|---|---|
| December 01, 2026, to November 30, 2027 | 3.0% | $1,350,000 |
| December 01, 2027, to November 30, 2028 | 2.0% | 900,000 |
| December 01, 2028, to November 30, 2029 | 1.0% | 450,000 |
| December 01, 2029 and thereafter | 0.0% | -- |
RRC Metropolitan District No 1 (RRCMD1) Capital Pledge Agreement
On December 17, 2021, the District entered into an intergovernmental funding agreement with RRCMD1 whereby the RRCMD1 has pledged to the repayment of the District’s bond debt all revenues generated by RRCMD1 from (1) a debt levy equal to 50 mills, as adjusted by the State of Colorado for changes in the ratio of taxable valuation to assessed valuation of real property since January 01, 2017 net of county treasurer collection fees and (2) all related specific ownership tax revenues. As of January 01, 2017 the residential assessment ratio was 7.20% with no exemptions to actual property values, and the assessment ratio for commercial and state property was 29.0% with no exemptions to actual property values. For the 2026 tax year, the residential assessment ratio is 6.8% after a 10% reduction of the first $700,000 in actual value, and the assessment ratio for commercial and state property is 25% to 26.0% with no exemptions to actual property values. The change in assessment ratios from 2017 to 2026 caused the RRCMD1’s Capital Pledge Levy for the 2027 collection year to be adjusted to 57.795 mills.
The Pledge Agreement will effectively terminate when the District’s Bonds, or any subsequent related Refunding Bonds, are paid in full.