Bond Debt

 

Series 2020A General Obligation Bonds


On November 05, 2020, the District issued $51,115,000 in General Obligation Bonds, Series 2020A (“2020A Bonds”). The proceeds of which were remitted to Reunion Metro District (which is controlled by the Developer - Clayton Properties Group II, LLC).

The Senior Bonds are comprised of two issues. The first issue is $12,475,000 with a stated interest rate of 5.000% and a maturity date of December 1, 2040. The second issue is $38,640,000 with a stated interest rate of 5.250% and a maturity date of December 1, 2050. The Senior Bonds are payable semi-annually on June 1 and December 1, beginning on December 1, 2017. Annual mandatory sinking fund principal payments are due on December 1, beginning on December 1, 2026.

The Senior Bonds are secured by and payable solely from Senior Pledged Revenue, net of any costs of collection, which is comprised of the following:

a)       all Senior Property Tax Revenues (generated by the imposition of the Senior Required Mill Levy);

b)      all Senior Specific Ownership Taxes (attributable to the Senior Required Mill Levy);

c)       all System Development Fees; and

d)      any other legally available amounts that the District may designate towards payment of the Senior Bonds.

The 2020 Indenture of Trust Agreement for the 2020A Senior Bonds establishes a Maximum Debt Mill levy the District is permitted to impose on taxable property within the District to fund the repayment of the Senior Bonds. 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 August 06, 2001 – at which time, the ratio was 9.15%. The ratio for the 2024 collection year is 6.700%, which causes the District’s Maximum Debt Mill Levy for debt service for 2024 to be 66.905.

The Senior Bonds are subject to redemption prior to maturity, at the option of the District on December 1, 2025, and on any date thereafter, upon payment of par, accrued interest, and a redemption premium equal to a percentage of the principal amount so redeemed, as follows:


Date of Redemption
  Redemption Premium (%)   Redemption Premium ($)
Dec 01, 2025 to Nov 30, 2026    3.0%   $  1,533,450
Dec 01, 2026 to Nov 30, 2027
   2.0%   $  1,021,700
Dec 01, 2027 to Nov 30, 2028
   1.0%   $     510,100
Dec 01, 2028and thereafter
   0.0%   $                  -

The District’s repayment schedule for its Series 2020A Bonds is as follows:

     Series 2020A Bonds
(5.00% to 5.25% interest)
 
  Year Ended
December 31

Principal

Interest
Total
Payment Due
  2020 $                         - $                         - $                               -
  2021 - 2,652,350 2,652,350
  2022 - 2,652,350 2,652,350
  2023 - 2,652,350 2,652,350
  2024 - 2,652,350 2,652,350
  2025 - 2,652,350 2,652,350
  2026 30,000 2,652,350 2,682,350
  2027 75,000 2,650,850 2,725,850
  2028 240,000 2,647,100 2,887,100
  2029 255,000 2,635,100 2,890,100
  2030 440,000 2,622,350 3,062,350
  2031 460,000 2,600,350 3,060,350
  2032 665,000 2,577,350 3,242,350
  2033 700,000 2,544,100 3,244,100
  2034 930,000 2,509,100 3,439,100
  2035 975,000 2,462,600 3,437,600
  2036 1,230,000 2,413,850 3,643,850
  2037 1,290,000 2,352,350 3,642,350
  2038 1,570,000 2,287,850 3,857,850
  2039 1,650,000 2,209,350 3,859,350
  2040 1,965,000 2,126,850  4,091,850
  2041 2,060,000 2,028,600 4,088,600
  2042 2,415,000  1,920,450 4,335,450
  2043 2,540,000 1,793,663 4,333,663
  2044 2,935,000 1,660,313 4,595,313
  2045 3,090,000 1,506,225 4,596,225
  2046 3,525,000 1,344,000 4,869,000
  2047 3,710,000 1,158,938 4,868,938
  2048 4,195,000  964,163 5,159,163
  2049 4,415,000  743,925  5,158,925
  2050 9,755,000 512,138 10,267,138
  Total $   51,115,000 $     64,185,665 $   115,300,665

Series 2020B Subordinate Limited Tax General Obligation Bond (Subordinate Bond)

On March 09, 2022, the District issued Subordinate Limited Tax General Obligation Bond, Series 2020B in the amount of $4,451,000. The stated interest rate on the Subordinate Bonds is 6.00% per annum through December 15, 2025 and 8.00% annum thereafter. The Subordinate Bonds are payable annually on December 15, beginning December 15, 2022, from, and to the extent of, Subordinate Pledged Revenue available, if any, and mature on December 15, 2050. The Subordinate Bonds are structured as cash flow bonds meaning that there are no scheduled payments of principal or interest prior to the final maturity date. Unpaid interest on the Subordinate Bonds compounds annually on each December 15. In the event any amounts due and owing on the Subordinate Bonds remain outstanding on December 15, 2060, such amounts shall be deemed discharged and shall no longer be due and outstanding.

The Subordinate Bonds are secured by and payable from Subordinate Pledged Revenue, net of any costs of collection, which includes:

a)       all Subordinate Property Taxes (generated by the imposition of the Required Subordinate Mill Levy);

b)      all Subordinate Specific Ownership Taxes (attributable to the Required Subordinate Mill Levy);

c)       any Subordinate Pledged Fee Revenue;

d)      any other legally available amounts that the District may designate towards payment of the Subordinate Bonds.

The Subordinate Indenture of Trust also contains a restriction prohibiting the District from levying a combined mill levy for operations and debt service of more than 99 mills.  The Subordinate Bonds are subject to redemption prior to maturity, at the option of the District on December 15, 2023, and on any date thereafter, upon payment of par, accrued interest, and a redemption premium equal to a percentage of the principal amount so redeemed, as follows:


Date of Redemption
  Redemption Premium (%)   Redemption Premium ($)
Dec 01, 2025 to Nov 30, 2026    3.0%   $     133,530
Dec 01, 2026 to Nov 30, 2027
   2.0%   $      89,020
Dec 01, 2027 to Nov 30, 2028
   1.0%   $       44,510
Dec 01, 2028and thereafter
   0.0%   $                  -

Per the 2020 Financial Forecast included with the Subordinate Bond Offering document, repayments on the Subordinate Bonds are projected to total approximately $21.9 million through 2050, which equates to an annual net effective interest rate of 12.6%.

The owner of the Subordinate Service 2020B Bonds is CMH Capital, Inc, an entity under common control and affiliated with CPG2, the Developer. The Subordinate Bonds were issued when all directors on the District’s board were employees of CPG2 and reported conflicts of interest regarding their service on the District’s board.

No debt-to-maturity schedule is provided for the Series 2020B Subordinate Bonds because such obligations are payable from Subordinate Pledged Revenue, if and when such revenue is available to repay these bonds.