Fountain transfers $1.97 million private‑activity bond allocation to El Paso County

The City Council on June 17 approved Resolution 25‑022 to assign Fountain’s 2025 private activity bond (PAB) volume cap allocation—$1,970,777—to El Paso County, the city’s regional partner.

Kimberly Bailey, a city presenter, explained that private activity bonds are a federal allocation distributed through the state and county and can be used only for site‑specific projects that qualify for affordable housing or certain manufacturing financing. Bailey told council the city had no qualifying projects this year and the county requested the allocation for regional use rather than returning it to the state.

Why it matters: private activity bonds enable tax‑exempt financing (low‑interest private loans) that developers can use to lower the cost of large affordable‑housing or eligible manufacturing projects. Bailey said PABs are not grants; they are a financing tool that must be used on qualifying new construction or redevelopment projects that meet federal rules.

Discussion at the meeting included resident questions about how the allocation could be used and why Fountain did not retain the allocation. Bailey and Interim Economic Development staff explained that PABs must be tied to a qualifying, site‑specific project and that the funds alone are typically only a portion of a much larger financing stack required to build affordable housing. City staff said the county reallocation keeps the volume cap available for regional projects.

Council action: Council member Duncan moved to approve Resolution 25‑022; Council member Herzberg seconded. The clerk recorded a 6‑yes vote and the motion carried.

Ending: Bailey said the city is participating in a regional housing assessment, expected to report in spring 2026, that will inform future housing strategy and could affect whether Fountain retains future PAB allocations.