Utilities Revenue Bond Issuance

At a glance

What: Two Colorado Springs Utilities (CSU) bond ordinances: a refunding of outstanding Utilities System Revenue Bonds (Ordinance 26-49) and new-money improvement bonds (Ordinance 26-50).
Amounts: Refunding bonds (Series 2026C, 2027A, 2027B) not to exceed $225,000,000. Improvement bonds Series 2026a (tax-exempt) not to exceed $330,000,000 and Series 2026b (taxable) not to exceed $140,000,000.
Where it stands: Ordinance 26-49 finally passed 9-0 on September 22, 2026. Ordinance 26-50 approved on first reading 9-0 with an amendment; a final vote is still to come.

Adam Hegstrom, CSU Treasury and Finance Manager, presented both ordinances together, with an overview of the plan of finance, new-money issuance (2026As and 2026Bs), potential Build America Bonds refunding and the working timetable. Payable solely from CSU net revenues. The ordinances authorize a paying agent agreement, bond purchase agreement and official statement (and an escrow agreement for the refunding).
No public comments.
26-49: motion by Leinweber, seconded by Donelson, finally passed 9-0.
26-50: motion by Leinweber, seconded by Rainey, to amend the fifth sentence of Section 302.A of the 2026A and B bond ordinance so that interest is payable each May 15 and November 15, starting May 15, 2027, and to approve on first reading. Passed 9-0.

Adam Hegstrom presented both ordinances (items 26-363 and 26-365). They were listed on the Consent Calendar and approved on first reading as part of the 9-0 consent vote (motion by Risley, seconded by Casey), with no discussion. The refunding ordinance's series label was still shown as a bracketed draft ([2026C][2027A][2027B]).

Ordinance 26-49 finally passed 9-0; Ordinance 26-50 amended and approved on first reading 9-0.

Both ordinances approved on first reading on the Consent Calendar (9-0).