Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Bonds topic
No spam. Unsubscribe anytime.
El Paso County approves up to $54 million in certificates of obligation to fund roads, water and HVAC projects
Summary
County commissioners authorized issuance of up to $54 million in certificates of obligation to pay for road repairs, stormwater work and first-time water/wastewater connections; staff said timing and retiring older debt keeps the county’s debt-service tax rate steady.
El Paso County commissioners voted May 12 to authorize issuance of up to $54 million in certificates of obligation to fund road improvements, flood-control work and first-time water and sewer connections, and to modernize HVAC at a youth services center.
County officials said the issuance was structured so it would not raise the county’s debt-service tax rate. Danielle Chavez, capital planning, told the commissioners the move leverages expiring debt and timing to “issue new debt in a structured and responsible manner as older debt is being paid off.”
The certificates would pay for a package of projects highlighted during the review: approximately $16 million for road safety projects including stretches of Asuncion Road and Pelicano Drive, $2.5 million for stormwater work in Canutillo, about $33.5 million for first-time water and wastewater connections in unincorporated communities, and roughly $2 million for HVAC at the Family Youth Services Center. County staff said many projects are design-ready and that delaying construction risks higher material and labor costs.
Brad Engs of Stifel Public Finance, the county’s financial advisor, said the financing variables were built with conservative assumptions: a true interest cost estimate of about 4.8 percent, a final maturity out to 2055 (a 30-year structure in current estimates) and an average annual debt service near $3.3 million. Stifel said the total principal and interest paid over the life of the issue was modeled at roughly $98.8 million under current market assumptions; that figure would change as market rates at pricing vary.
Commissioners said the decision followed public engagement — 15 in-person and one virtual meeting — and an extended capital planning process that began in 2023. “We’ve structured the debt to avoid tax rate increases while investing in critical infrastructure,” Chavez said. Commissioners also discussed the risk of legislative changes to local debt authority and the county’s desire to preserve its financing options.
Action: A motion to approve the CO issuance carried on a recorded vote. The court authorized staff to proceed with offering documents, premarketing and the steps leading to a planned summer pricing, and directed county staff to return as terms firm up.
What’s next: Staff will complete required documents, meet rating agencies and prepare for pricing. The court and its financial advisers said they will return to the bench with final structure and pricing details before sale so commissioners can confirm the terms.
