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PO Box 580
Fort Collins, CO 80522-0580
970.212.2900
V/TDD: 711
utilities@fcgov.com
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M E M O R A N D U M
DATE: April 30, 2020
TO: Mayor Troxell and Councilmembers
THROUGH: Darin Atteberry, City Manager
FROM: Travis Storin, Interim Chief Financial Officer
RE: Epic Loan Program – Interest Rates
__________________________________________________________________________________________
The purpose of this memo is to provide notification to Council that the Epic Homes program will be adjusting
retail interest rates for new loans as of May 1, 2020, per Financial Management Policy 40 and Fort Collins
Municipal Code Section 26-720.
The following adjustments to the program’s retail interest rates are effective as of May 1, 2020. The 15-year
term is also reestablished as an option for customers with this update.
New Retail Interest Rates
(Effective May 1, 2020)
Previous Retail Interest Rates
(Since August 1, 2019)
Tier I: 3- and 5-year terms 2.95% 3.75%
Tier II: 7- and 10-year terms 3.15% 4.25%
Tier III: 15-year term 3.25% 4.75%
Downward movements in the cost of long-term commercial borrowing, combined with zero interest and grant
capital have helped strengthen the financial solvency of the City’s Epic Homes loan portfolio. Staff analysis of
the loan portfolio indicates the City can maintain a Weighted Average Cost of Capital of the Epic Homes
portfolio of between 79 and 100+ basis points below the new proposed retail interest rates. Staff believe this
additional program income / basis point cushion will not only ameliorate short term interest rate risk to the City
from the program’s commercial borrowing, but also allow the City to offer attractive retail rates to customers.
Staff believe the new proposed rates will further incent home and rental property upgrades, and will help
support a number of other City strategic objectives around equity, affordable housing, carbon emissions
reductions and improved health and well-being for low- and moderate-income residents and the community at
large.
More information about Epic Homes and the loan offerings is available at fcgov.com/epichomes.
CC Jeff Mihelich, Deputy City Manager
Kevin R. Gertig, Utilities Executive Director
Jacqueline Kozak-Thiel, Chief Sustainability Officer
Josh Birks, Director, Economic Sustainability
DocuSign Envelope ID: 60F2D85C-A9BE-429C-A896-291B5560D85E
Lisa Rosintoski, Deputy Director, Utilities Customer Connections
Blaine Dunn, Interim Accounting Director
John Phelan, Energy Services Senior Manager
DocuSign Envelope ID: 60F2D85C-A9BE-429C-A896-291B5560D85E