Grand County OKs certificate sale to finance EMS Station 1, sets repayment parameters

Grand County commissioners on Feb. 11 approved a resolution authorizing certificates of participation (COPs) to finance construction of a new EMS Station 1, authorizing staff to finalize sale documents and setting financial parameters for the transaction.

The resolution delegates final pricing authority to the board chair, county manager and finance director and allows sale of COPs sized to provide a $25,000,000 project fund for the station. Commissioners set transaction caps — a maximum effective interest rate of 5.00 percent, a maximum total repayment cap of $42,000,000 and a maximum annual appropriation not to exceed $2,210,000 — and approved related documents in form so staff and counsel can finalize the sale.

Why it matters: The county will use a lease/leaseback COP structure that lets it finance construction without voter approval, because payments are subject to annual appropriation rather than a bond indebtedness requiring TABOR voter approval. County officials said the COPs will be repaid from legally available county revenues; staff identified property and sales tax as principal revenue sources for planning and rating purposes.

Details and timeline - Target project fund from the financing: $25,000,000. Commissioners and staff said additional non‑COP sources will be used if the full project cost exceeds that amount. - Pricing (sale) target date: March 11, 2025; closing target: March 25, 2025. Staff and bond counsel will insert final pricing and principal/interest numbers into the financing documents after pricing. - Maturity and call: final maturity is December 1, 2045, with a first optional call date of December 1, 2035 (after which the county may prepay/refund for savings). - Estimated repayment (preliminary): staff presented a working illustrative total repayment in the high‑$30 millions range (staff noted the figure will vary with market rates and final rating). Net interest cost presented on the board was roughly in the mid‑4 percent range on the illustrative pricing presented to commissioners; the resolution’s cap remains 5.00 percent.

Who presented: Maddie Pudanovic of Hilltop Securities (municipal advisor) walked the board through the financing structure. Piper Sandler underwriters and Butler Snow bond and disclosure counsel participated in the discussion, and staff (county manager and finance director) confirmed schedules and signing logistics.

Legal and market context: Butler Snow summarized the COPs’ legal mechanics (site lease to trustee, leaseback to the county) and the annual‑appropriation nature of the payments. Staff and advisors said they will request a Standard & Poor’s rating (S&P) and expect a high investment‑grade rating (double‑A level range) prior to pricing. Commissioners and advisors discussed federal tax‑exempt status risk and recent national legislative proposals; advisors said, given timing, they do not expect changes to tax‑exempt authority to prevent the planned March issuance but will monitor Washington developments.

Next steps: staff will finalize revisions to the financing documents, post the preliminary official statement for investor due diligence, present any final pricing results to the board designees and close the transaction if market conditions are acceptable. Butler Snow said signature pages will be prepared and the county clerk and board chair will be the primary signers at closing.

Commission action: The Board of County Commissioners voted to approve the authorizing resolution and to allow the chair to sign all applicable documents. The motion passed with commissioners answering “Aye.”

Ending note: County staff said proceeds will be available after closing to begin project requisitions and construction invoicing; the county emphasized it will return if market or legal conditions require a revised course of action.