Jun 27, 2018
The City and County of Denver closed on the issuance of $261 million of general obligation bonds today; $193 million will go toward the Elevate Denver Bond Program and $67.9 million will go toward the refunding of the 2008 Justice System Bonds.
“We are very pleased with the outcome of the bond sale and with the amount of interest from bidders. It was a competitive sale, which means the taxpayers of Denver are getting the best deal possible,” said Chief Financial Officer Brendan Hanlon. “Though several projects are already underway, the sale of these bonds allows the Elevate Denver team to quickly get to work designing and building the full scope of projects on the initial list.”
The competitive sale allowed the city to secure a low interest rate of 2.9 percent on the Elevate Denver Bond Program bonds and 2.1 percent on the refunded Justice System Bonds. The refunding resulted in lower borrowing costs of $8.1 million.
Denver’s AAA ratings were affirmed by all three major credit ratings agencies (S&P, Moody’s and Fitch). All three agencies cited the city’s strong fiscal management practices as a major factor in their ratings. The city’s strong economy, strong financial performance and healthy reserve levels also factored into the ratings.
From more bike lanes and improved roads and bridges to park enhancements and major construction of cultural facilities and Denver Health, the $193 million list of initial Elevate Denver projects delivers on high priority investments that are ready to begin. The approved initial project list can be found here.
The city currently anticipates a second debt issuance in 2019, which will allow additional projects to move quickly to construction. After this issuance, the remaining general obligation bond authorization is $744,418,500.
Visit www.denvergov.org/elevatedenver for more information about the bond process, projects and progress.
About Elevate Denver
The $937 million general obligation bond proposed by the City and County of Denver was approved by voters in November 2017. Elevate Denver will allow the city to repair, replace and expand infrastructure and capital assets across the city, including repairing roads and bridges, improving parks, playgrounds and recreation centers, upgrading our police and fire stations, and enhancing our libraries, cultural centers and Denver Health Medical Center.