Bond Debt

On December 15, 2021, the District issued General Obligation Limited Tax Bonds in the amount of $5,520,000. The stated interest rate on the 2021 Bonds is 4.75% per annum, and the 2021 Bonds are payable annually on December 1, beginning December 1, 2022, from, and to the extent of, any and all Pledged Revenue available. The 2021 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 2021 Bonds compounds annually on each December 1st. In the event any amount due and owing on the 2021 Bonds remain outstanding on December 1, 2061, such amount shall be deemed discharged and shall no longer be due and outstanding.

The 2021 Bonds are secured by and payable from Pledged Revenue, net of any costs of collection, which includes:
     a) all Property Taxes (generated by the imposition of the Required Mill Levy);

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

     c) any other legally available moneys which the District determines, in its absolute discretion, to credit to the 2021 Bond Fund.

The Required Mill Levy is 55.278 mills, as adjusted by the State of Colorado for changes in the ratio of taxable valuation to assessed valuation of real property since May 01, 2018. As of May 01, 2018 the ratio was 7.20%. The ratio for 2023 is 6.95%, which caused the Required Mill Levy for debt service for 2023 to be 57.266.

The 2021 Bonds are subject to redemption prior to maturity, at the option of the District on December 01, 2026, 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 ($)
  December 01, 2026, to November 30, 2027 3.0% $      165,600
  December 01, 2027, to November 30, 2028 2.0% 110,400
  December 01, 2028, to November 30, 2029 1.0% 55,200
  December 01, 2029 and thereafter 0.0% --

The 2021 Bonds are held by Front Range Securities, LLC, an affiliate of Boedecker Lake Partners, LLC and the net proceeds from the 2021 bonds totaling $5,357,613 was paid to Boedecker Lake Partners, LLC. All directors serving on the District’s board in 2021 and approved issuance of the 2021 bonds were affiliated with Boedecker Lake Partners, LLC.

No debt-to-maturity schedule is provided for the 2021 Bonds because semi-annual payments due on these Bonds are payable only to the extent of net Pledged Revenue.