Larimer County outlines $110 million COPs plan to fund Ranch Master Plan Phase 2a

Larimer County commissioners on Aug. 25 reviewed a plan to issue $110 million in certificates of participation, or COPs, to finance Phase 2a of the Ranch Master Plan and heard lender, bond counsel and underwriting teams describe the proposed structure, security, tax treatment and schedule.

The proposal, presented by Lori Lopez, Larimer County finance director, and municipal advisor Stacy Mast of Stifel, would pledge selected Ranch facilities as collateral and use a mix of tax-exempt and taxable COPs to limit tax risk while aligning final maturity with the existing sales-tax stream that supports the Ranch.

Why it matters: The financing would enable construction and improvements at the Ranch — including event-lawn, amphitheater and arena upgrades discussed elsewhere — while relying primarily on the county’s 0.15% Ranch sales-and-use tax to support annual debt service. Commissioners scrutinized which facilities would be encumbered, the tax analysis that determines how much of the borrowing must be taxable, and the timeline for rating, marketing and closing.

Stacey Mast, Stifel municipal advisor, said COPs are commonly used in Colorado and “are allowed under TABOR because it's an annually appropriated” obligation. Mast explained that, unlike general obligation bonds, COPs depend on annual appropriation and typically carry a one-notch rating differential from issuer credit.

Ashley Dennis, partner at QTAC and bond…