City adopts 2025 water and sewer revenue bonds to fund capital projects; councils vote 6-0

The Greeley City Council on Tuesday adopted two ordinances authorizing the sale of revenue bonds to fund water and sewer capital projects, voting unanimously on both measures after public hearings.

The council voted to approve issuance of up to $39,500,000 in water revenue bonds and up to $44,000,000 in first-lien sewer improvement revenue bonds, with both issuances structured to mature in 20 years, according to staff presentations.

Why it matters: The bonds will finance upgrades the city said are necessary to maintain and expand water and sewer infrastructure. Debt service is planned to be repaid from utility rates and fees rather than the general fund.

Water bonds: Robert Miller, presenting for the Water and Sewer Department, said the recommended water bond issuance would finance replacement and expansion of transmission and distribution systems, rehabilitation and replacement of water storage infrastructure, construction of infrastructure to access the Terry Ranch aquifer, and the purchase of blocks of water rights the city expects to need for future demand. The city requested authorization for a maximum issuance of $39.5 million; staff estimated issuance costs of about $500,000 and an overall repayment estimate of about $59 million over the life of the debt. Miller said the city expects to maintain its current AA+ rating and to use a competitive sale process in August following ratings in July.

Sewer bonds: Miller described the sewer bond package as necessary to increase system reliability, replace older plant components and add capacity to serve customers. Proposed sewer bond uses include upgrades to the wastewater-treatment and reclamation facility, expansion of trunk sewer lines and investment in regional treatment capacity. The request was for up to $44 million, with issuance costs of about $500,000 and total estimated repayment of about $65 million; the city again expects to proceed with rating and competitive sale steps in July and August.

Public input and votes: The council opened public hearings on both ordinances. Only two members of the public spoke during the water-bond hearing; one speaker asked whether the city could source water closer than Terry Ranch. No members of the public spoke during the sewer-bond hearing. Councilor Debuti moved to adopt the water ordinance; the motion passed on a roll-call vote of six ayes (Butler, Debuti, Hall, Peyton, Olson and Mayor Gates). The sewer-bond ordinance passed on a similar 6-0 roll-call vote.

Next steps: Staff said the city expects bond ratings in July, a competitive sale in August and final receipt of bond proceeds in August, after which projects in the approved capital-improvement plans will be funded and scheduled.