Bond Debt

The District’s Third Amended and Restated Service Plan, which was approved by the City of Thornton on August 22, 2017, authorizes the District to issue up to $20 million in debt over a term not to exceed 40 years. The repayment of the District’s debt can exceed 40 years if the majority of the District’s Board are residents of the District and the District’s Board has voted in favor of refunding a part or all of the District’s debt (which must result in a net present value savings).

The District’s Third Amended and Restated Service Plan also establishes a Maximum Mill levy the District is permitted to impose on taxable property within the District for the payment of debt. As long as the District’s total outstanding debt exceeds 50% of the assessed valuation of all taxable property within the District, the Maximum Debt Mill Levy is 50 mills, as adjusted by the State of Colorado for changes in the ratio of taxable valuation to assessed valuation of real property since January 1, 2005. As of January 1, 2005, the ratio was 7.96%. The ratio for 2023 was 6.95%, which caused the District’s Maximum Mill Levy for debt service for 2023 to be 57.266.

Series 2017 Bonds

On October 31, 2017, the District issued Limited Tax (Convertible to Unlimited Tax) G.O. Refunding and Improvement Bonds, Series 2017A in the amount of $15,090,000. The Senior Bonds were issued as two term bonds that bear interest at 5.000% and 5.125%. The District also issued Subordinate Limited Tax G.O. Bonds, Series 2017B in the amount of $2,060,000. The Subordinate Bonds were issued at the rate of 7.75% per annum. The Subordinate Bonds were structured as cash flow bonds meaning that there were no scheduled payments of principal or interest prior to the final maturity date and unpaid interest on the Subordinate Bonds compounded annually.

The District also issued $1,752,000 Junior Lien Limited Tax General Obligation Bonds, Series 2017C (the Junior Lien Bonds). The proceeds from the issuance of the Junior Lien Bonds were paid to Lennar Colorado, LLC and Lennar was the holder/owner of the Junior Lien Bonds. The Junior Lien Bonds were issued at the rate of 10.625% per annum and were structured as cash flow bonds meaning that there were no scheduled payments of principal or interest prior to the final maturity date of the debt. Per the 2017 Financial Forecast included with the Junior Lien Bond Offering document, interest payments to Lennar were projected to total $24,026,853, which equated to an annual net effective interest rate of 39.4%.

In August 2024, as part of the settlement of all litigation between the District and Lennar, Lennar agreed to write off the 2017 Junior Lien Bonds. 

Series 2025 Bonds

On November 13, 2025, the District issued $12,695,000 General Obligation Refunding Bonds, Series 2025 (the 2025 Bonds). The proceeds from the sale of the 2025 Bonds were used to refund the District’s 2017 Senior and 2017 Subordinate Bonds in full. The 2025 Bonds were issued as four term bonds that bear interest at interest rates ranging from 5.00% to 5.25% and such bonds are payable semi-annually on June 1 and December 1, beginning on December 1, 2026. The 2025 Bonds mature on December 01, 2047.

The District has pledged the full faith and credit of the District towards the repayment of the 2025 Bonds. Consequently, the 2025 Bonds are secured by an unlimited debt mill levy pledge.