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Commissioners authorize up to $155 million in voter-approved general obligation bonds; court told debt will raise debt-service rate 1.5 cents
Summary
Following voter approval in November 2024, the court authorized issuance of up to $155.025 million in general obligation bonds for parks, a medical examiner facility and an animal shelter; staff estimated a 1.5-cent increase to voter-approved debt-service tax rate and discussed legislative risks to county borrowing authority.
El Paso County commissioners voted May 12 to authorize issuance of up to $155,025,000 in general obligation bonds that voters approved in the Nov. 5, 2024 election. The bond package covers three propositions: parks and recreation improvements ($95.6 million), a new office for the medical examiner ($26.7 million) and a county animal shelter ($32.7 million).
Danielle Chavez of the county’s capital planning office told the court the authorization preserves flexibility for structuring both tax-exempt and taxable components and said issuing the full authorization now protects the county if a pending state bill would constrain future borrowing. “Given legislative volatility, staff recommends the court move forward with adopting the order today,” she said.
Brad Engs of Stifel Public Finance explained the financial parameters commissioners were asked to approve. Staff estimated the bonds will generate a voter-approved debt-service tax-rate increase of roughly 1.5 cents in the coming fiscal year; commissioners were told the CO program the county uses to keep debt-service near a 5-cent baseline is separate from the voter-authorized GO debt. The court’s action preserves a timeline and flexibility for either consolidated or staged issuances to meet IRS tax-expenditure spend-down rules and project cash-flow needs.
County officials described two issuance options: a consolidated issuance of the full authorization in summer 2025 or staged sales (smaller tranches in 2025 and 2026) to meet project spending windows while complying with federal rules for tax-exempt proceeds. Bond counsel and the county’s financial adviser said projects and phasing will be refined as pricing approaches.
Commissioners discussed legislative risks. Staff highlighted House Bill 19 and related measures that would limit county debt issuance; bond counsel and administration said adopting authorizing language now preserved options if lawmakers act later this spring.
Action: The court adopted an order authorizing issuance and sale of up to $155,025,000 in general obligation bonds and delegated pricing authority under specified parameters; motion carried on a recorded vote.
What’s next: Staff will continue design and procurement tasks and return to court with pricing options and recommended closings when market conditions and legislative clarity allow.
