HomeMy WebLinkAbout11cii RESOLUTION - PRLG BONDS REIMBURSEMENT COUNCIL COMMUNICATION
TO: Mayor and Council
FROM: Christina Underhill, Kevin Engels
DEPARTMENT: Finance, Parks, Recreation & Library
DATE: March 17, 2025
SUBJECT:
Parks and Recreation General Obligation Bonds (Bond)
reimbursement resolution
DESCRIPTION:
Parks and Recreation General Obligation Bond reimbursement resolution
RECOMMENDATION:
Staff recommends City Council approve a Resolution allowing the City to use Bond proceeds to
pay for costs incurred prior to the City receiving the proceeds of the bonds.
PREVIOUS COUNCIL ACTION:
Several actions related to the voter approved Bond issue have taken place:
August 5, 2024 - City Council approved placing a measure on the November 5, 2024
ballot. This measure requested voter approval for the issuance of the Bonds.
November 5, 2024 - the voters of Englewood passed Ballot Issue No. 2C authorizing the
City to issue $41,500,000 in Bonds for the purpose of improving, repairing, equipping
and upgrading the City’s parks and recreation facilities and areas (collectively “Parks
Improvements”).
December 16, 2024 - City Council approved an ordinance authorizing a property tax levy
to collect the funds necessary to pay for the debt service on the Bonds.
February 24, 2025 - City staff met with the Standard and Poor's Rating Agency to secure
an individual credit rating for the Bonds. Securing a credit rating helps assure investors
that the Bonds are a high quality investment. A high credit rating also typically leads to a
more favorable interest rate for the City which in turn leads to a lower property tax levy
for property owners.
March 3, 2025 - City Council approved a bill for an ordinance on first reading authorizing
the issuance of the Bonds. (Second reading of that ordinance is tonight)
SUMMARY:
The City has incurred approximately $262,500 in expenditures related to projects that are part of
the voter approved Bonds. Staff would like City Council to consider allowing these costs to be
paid from the proceeds of the bonds. If City Council approves this resolution, these previously
incurred expenditure amounts would be returned to the Open Space and Conservation Trust
funds available balances and be available for City Council to appropriate to non-bond related
projects.
ANALYSIS:
City Council approved certain expenditures during the 2025 budget process. These
expenditures were identified as part of several projects included in the Bond ballot measure but
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were also identified as projects that would move forward whether or not the ballot measure
passed.
Once the ballot measure did pass and pursuant to 26 C.F.R. § 1.150-2, (IRS Code of Federal
Regulations) the City is allowed to use a portion of the proceeds from the Bonds to reimburse
previously incurred expenses.
The approximate current expenditures ($262,500) that are eligible for reimbursement are:
Design concepts for:
o Cushing Park $80,000
o Emerson Park $60,000
o Rotolo Park $106,000
o Englewood Recreation Center $16,500
It is still approximately 45 days before we receive the bond proceeds so this list and these
amounts are subject change.
COUNCIL ACTION REQUESTED:
Staff recommends City Council approve a Resolution allowing the City to use Bond proceeds to
pay for costs incurred prior to the City receiving the Bond proceeds.
FINANCIAL IMPLICATIONS:
These expenditures are already approved in the 2025 budget so no additional funding is being
requested. Use of the Bond proceeds to reimburse these expenditures would increase the
Conservation Trust and Open Space Funds available balances.
CONNECTION TO STRATEGIC PLAN:
Safety - Protecting our citizens, infrastructure, and environment by providing safe parks and
recreation facilities.
Infrastructure - Updating, improving, and investing in the City's infrastructure.
Sustainability - Identifying areas for native plantings to reduce turf areas and water
consumption.
OUTREACH/COMMUNICATIONS:
A variety of methods have been and will continue to be utilized to market the projects related to
the bond.
Online: Webpage highlighting the projects(Englewood Engaged), FAQs, short-form
videos, social media campaign, emailed newsletters.
Print: Citizen magazine story, handouts for outreach events, utility bill insert, postcards
Community: Sandwich boards at recreation centers, in-person events, Neighborhood
nights, Englewood Ambassadors booths, and community message boards.
ATTACHMENTS:
2025 Parks and Recreation GO Bond reimbursement resolution
2025 Parks and Recreation GO Bond reimbursement resolution-presentation
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4869-8125-7731.1
RESOLUTION NO. ___
SERIES OF 2025
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, DECLARING ITS OFFICIAL INTENT TO
REIMBURSE ITSELF WITH PROCEEDS OF GENERAL OBLIGATION
BONDS FOR CERTAIN CAPITAL EXPENDITURES UNDERTAKEN OR
TO BE UNDERTAKEN BY THE CITY; GENERALLY IDENTIFYING THE
CAPITAL EXPENDITURES; AND PROVIDING CERTAIN OTHER
MATTERS IN CONNECTION THEREWITH.
WHEREAS, the of Englewood (the “City”) is a home rule municipality and political
subdivision duly organized and existing pursuant to a city charter (the “Charter”) and the
constitution and laws of the State of Colorado (the “State”); and
WHEREAS, pursuant to Section 104 of the Charter and Article XI of the Constitution of
the State, the City is authorized to issue general obligation bonds for any public capital purpose,
subject to obtaining voter approval of a ballot issue authorizing such bonds; and
WHEREAS, at the election held on November 5, 2024, Ballot Issue 2C was approved by
a majority of the eligible electors of the City voting on the ballot issue to incur debt for the purpose
of improving, repairing, equipping and upgrading the City’s parks and recreation facilities and
areas (the “Capital Projects”); and
WHEREAS, the City Council of the City (the “City Council”) currently intends and
reasonably expects to participate in a tax-exempt financing in calendar year 2025 in a principal
amount up to $41,500,000 (the “Financed Amount”), to finance the Capital Projects and reimburse
the City for the portion of such capital expenditures incurred or to be incurred subsequent to a
period commencing 60 days prior to the date hereof, and ending prior to the later of 18 months of
the date of such capital expenditures or the placing in service of the Capital Projects (but in no
event more than 3 years after the date of the original expenditure of such moneys); and
WHEREAS, the City Council hereby desires to declare its official intent, pursuant to 26
C.F.R. § 1.150-2, to reimburse the City for such capital expenditures with the proceeds of the
City’s general obligation bond financing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ENGLEWOOD, AS FOLLOWS:
Section 1. Declaration of Official Intent. The City shall, presently intends, and
reasonably expects to finance a portion of the Capital Projects with legally available funds.
Section 2. Dates of Capital Expenditures. All of the capital expenditures covered by this
Resolution were or will be made on and after the date which is 60 days prior to the effective date
of this Resolution.
Section 3. Issuance of General Obligation Bonds. The City presently intends and
reasonably expects to participate in a general obligation bond financing within 18 months of the
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2 of 2
4869-8125-7731.1
date of the expenditure of moneys on the Capital Projects or the date upon which the Capital
Projects is placed in service, whichever is later (but in no event more than 3 years after the date of
the original expenditure of such moneys), and to allocate from said financing an amount not to
exceed the Financed Amount to reimburse the City for its expenditures in connection with the
Capital Projects.
Section 4. Confirmation of Prior Acts. All prior acts and doings of the officials, agents
and employees of the City which are in conformity with the purpose and intent of this Resolution,
and in furtherance of the Capital Projects, shall be and the same hereby are in all respects ratified,
approved and confirmed.
Section 5. Effective Date of Resolution. This Resolution shall take effect immediately
upon its passage.
ADOPTED AND APPROVED this ___ day of _________, 2025.
Othoniel Sierra, Mayor
ATTEST
Stephanie Carlile, City Clerk
I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify that the
above is a true copy of Resolution No. ___, Series of 2025.
Stephanie Carlile, City Clerk
Page 2426 of 2454
Parks and Recreation General Obligation
Bond -Reimbursement Resolution
Presented By:Christina Underhill, Director of Parks, Recreation, Library and Golf
Kevin Engels, Director of Finance
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Bond reimbursement resolution
•City Council approved certain expenditures during the 2025 budget
process. These expenditures were identified as part of several
projects included in the Bond ballot measure but were also
identified as projects that would move forward whether or not the
ballot measure passed.
•Once the ballot measure did pass and pursuant to 26 C.F.R. §
1.150-2, (IRS Code of Federal Regulations) the City is allowed to
use a portion of the proceeds from the Bonds to reimburse
previously incurred expenses.
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Bond reimbursement resolution-continued
•The approximate current expenditures ($262,500) that are eligible for
reimbursement are:
•Design concepts for:
•Cushing Park $80,000
•Emerson Park $60,000
•Rotolo Park $106,000
•Englewood Recreation Center $16,500
•It is still approximately 45 days before we receive the bond proceeds so this
list and these amounts are subject to change.
•If City Council approves this resolution, these previously incurred expenditure
amounts would be returned to the Open Space and Conservation Trust funds
available balances and be available for City Council to appropriate to non-
bond related projects.Pa
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Questions or Comments?
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