Taxpayer are getting a good deal, says Denver Treasurer Steve Hutt. "The city experienced less-than-anticipated borrowing costs," Hutt says. "The bonds were sold at less than a 5% true interest cost, which is more than a full 2% less than the maximum rate voters approved in 1999."

The bond sale is the first of two series of bonds to finance the project. A second series of Excise Tax Bonds, totaling $75 million, is expected to be sold in early March. "The structure of the two series of bonds, one in a variable rate mode, allows the city the ability to retire bonds early if the city receives excess tax revenues as anticipated," Hutt says. The "unique structure," explains Hutt, means Denver will pay less than $500 million in principal and interest instead of the $651.2 million maximum that voters had approved in November 1999.

When voters approved the Colorado Convention Center Expansion, they also has signed off on a 1.75% increase to the Lodgers Tax and Short-Term Auto Rental Tax, which along with other excise taxes, are pledged to pay the bonds. These tax increases will no longer be collected once the two series of bonds are paid off. Even if early retirement does not occur, the bonds sold today would mature within 19 years, versus the 30 years sanctioned by voters. "The structure of this financing is to pay off the debt and eliminate the tax increases as soon as possible," says Hutt.