Denver to Issue $410 Million in Vibrant Denver Bonds
Denver is set to issue its first round of Vibrant Denver general obligation bonds, totaling up to $410 million, following approval from the City Council. The borrowed funds will finance 60 capital projects, including road, bridge, and park improvements, to be completed within six years.
Major credit agencies have given Denver AAA ratings for the bonds, indicating high confidence in the city’s ability to repay the debt. However, there is a warning that a downgrade could occur if the city’s rainy day fund does not recover soon.
The city has taken measures to address financial constraints, such as a hiring freeze and layoffs, to maintain its credit rating. The agencies also caution that federal funding cuts could impact Denver’s budget in the future.
Despite these challenges, the ratings agencies recognize Denver’s strong financial management practices and solid reserves, providing an overall positive review of the city’s financial performance.
Voter-Approved Bond Package
In November, voters approved five ballot questions related to the $950 million bond package, with funds allocated to transportation, parks, health services, city facilities, and housing. The city will repay bondholders using property tax revenue, without the need for a tax increase.
The first round of funding will be up to $218 million with a maximum term of 25 years and a rate of up to 5.5%. The second round will total approximately $193 million with a term of up to 20 years and a rate of up to 6.25%.
