With the intent of refinancing $11 million in water and sewer bonds, the Commerce City Council convened the first meeting of its Public Facilities Authority Monday night.
The authority comprises the mayor, city council and resident Charles Blair. It was authorized by the 2013 General Assembly by local legislation.
Bryan Huskey of Merchant Capital explained the benefits of refinancing the bonds. He noted that although bond rates have “moved against us a little,” the refinancing will:
•reduce the interest rates on the bonds by two-tenths of a percent
•more importantly, free up $1.3 million in cash reserves now required under the current bonds, which will be used to pay down the debt to reduce the amount owed and the cost of servicing the debt
•remove the city from water and sewer rate mandates required under the current bond covenants — a year and a half ago the city had to raise water and sewer rates to abide by the bond covenants
For the full story, see the Aug. 21 issue of The Commerce News.