Council advances water-enterprise bond ordinance to finance water treatment project; first reading passes 6-1

Brighton’s council advanced an ordinance on Jan. 21 authorizing the issuance and sale of Water Activity Enterprise revenue bonds (Series 2025) to finance the remaining portion of the city’s water treatment plant project. The measure passed on first reading by a 6-1 roll-call vote.

Finance Director Katrina Asher reviewed the city’s financing plan, saying the project uses a combination of grants, reserves and bonding. Asher told council that bond proceeds previously issued in 2022 had earned about $5.9 million in interest, which will be returned to the project after addressing any federal arbitrage liability. She said about $68 million of the bond fund had been spent to date, with approximately $18 million remaining and that two rounds of bonding were part of the financing strategy envisioned in 2022.

Asher summarized next steps: rating agency calls, preparation of the preliminary official statement, a target competitive bond sale the week of Feb. 19 and a planned closing in February. She said the ordinance sets borrowing parameters, pledges water revenues to repay the debt and authorizes staff to execute a competitive sale.

Councilmember discussion included questions about arbitrage rules and the municipal requirement to spend 85% of bond proceeds within three years; Asher confirmed the city must comply with tax-exempt bond rules and that an arbitrage consultant will calculate liabilities. Councilmember Fiddler moved the item and Councilmember Taddeo seconded. The motion passed 6-1; the transcript does not identify the dissenting member by name.

The ordinance will return for final consideration on Feb. 4, 2025, while staff completes rating calls and final bond sale documentation.