October 21, 2015 - The Town of Erie successfully sold $12.3 million of Water Enterprise Revenue Refunding Bonds. The refinancing of bonds, issued originally in 2007, met strong demand by the bond market for the Town’s debt issue. As a result of this strong demand and market conditions, actual savings over the life of the bonds will be $1,606,000, 27% more than the $1,262,000 in savings originally projected earlier this week.
According to Town of Erie Finance Director Steve Felten, “Our bond underwriters informed us this strong demand was due both to a general desire by bond investors for bonds of Colorado issuers, but also specifically due to the quality of the Town of Erie’s bonds.”
December 3, 2014 - The Town of Erie is pleased to announce that the refinancing of Certificates of Participation (COPs) related to water rights acquisition from 2005 has been successfully completed. According to Town of Erie Finance Director Steve Felten, the effective rate of the bonds is 3.76%. This rate is below the 5% rate assumed for in Ordinance 37-2014 which approved the refinancing of the COPS.
BACKGROUND: In 2005 the Town of Erie and the Town of Erie Finance Corporation entered into agreements to acquire 2,639 shares of Colorado-Big Thompson water rights. This debt was financed through the issuance of $32 Million in Certificates of Participation. These COP's were first refinanced in 2010 and on October 28, 2014, the Board of Trustees approved Ordinance 37-2014 allowing for the execution of agreements allowing the Town to obtain favorable, long-term fixed rates on the COP’s through a second refinancing. Closing of the transaction was completed on December 1, 2014.