Council approves Willow Bend Metro District debt limit increase to enable refinancing

Thornton City Council approved a resolution amending the Willow Bend Metropolitan District service plan and intergovernmental agreement to raise the district’s total debt issuance limit from $22,000,000 to $25,000,000 to permit a proposed refinancing of the district’s outstanding bonds.

City staff and the applicant said the proposed change would let the district refinance higher-interest bonds and lower the effective mill levy for residents. Ellie Hasson, senior planner for the city, described the request as a material modification that must be processed substantially the same as the original approval and recommended approval after finding the amendment conforms with applicable law.

Megan Murphy, general counsel to the Willow Bend Metro District, told council that the district board is composed of residents, not developers, and that the proposal would not increase taxes but would create savings by refinancing at lower interest rates. Michael Lund of Piper Sandler, the financing team member on the record, explained the optional extension of the repayment term would lower annual payments and provide immediate tax savings to homeowners while potentially increasing total interest over a longer term. Applicant materials estimate a refinancing interest rate near 4.3% versus previous bonds in the 5%–7.6% range and approximate net present value savings of about $2.5 million to residents if the refinancing proceeds as proposed.

A member of the public, Charles Wolfersberger, raised concerns about the district’s existing debt levels, the timing of prior bond fill-ups, and potential conflicts of interest related to district representation and legal counsel. Board members George Doherty and Ivan Musachenko, both Willow Bend residents who serve on the district board, said they had discussed the proposal internally and that meeting notices had been posted.

Council members asked questions about the timing of bond authorizations (authorized in 2019, filled up in 2022), who holds trading interests in privately held bonds (applicant said she could not confirm ownership), and how the proposed term extension and lower rates interact. Staff reiterated that the amendment complies with Colorado Revised Statutes governing metropolitan districts and recommended approval.

Councilmember Umran introduced the resolution; after discussion the council voted unanimously to approve the second amendment to the Willow Bend Metropolitan District service plan and the second amendment to the corresponding intergovernmental agreement.

The amendment authorizes an increased maximum debt limit to permit the refinancing transaction; any specific bond issuance and decisions about final terms will be made later by the district and its financing advisors.