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Adams County debt advisers outline COP capacity; assessor data and state law will alter property‑tax outlook
Summary
Piper Sandler advised the board on certificates of participation (COP) capacity, saying the county could borrow hundreds of millions at current rates; staff also presented the assessor's preliminary certification and explained how House Bill 24B1001 will reduce assessed‑value growth in 2027, requiring a two‑year budgeting outlook.
Adams County’s independent municipal adviser told the Board of County Commissioners the county has room to issue certificates of participation (COPs) but interest‑rate moves and policy changes make borrowing decisions time‑sensitive.
Robin Moore of Piper Sandler gave commissioners a capacity analysis for COP financing and said, based on the county’s current finances and today’s market rates, the combined COP capacity across applicable funds is in the hundreds of millions of dollars. Moore cautioned that the capacity estimate is sensitive to interest‑rate moves: a 50‑basis‑point rise in rates materially lowers how much the county can prudently borrow.
Key takeaways from the debt briefing: - COP capacity: Piper Sandler presented a high‑level capacity range (the presentation showed a combined amount in the high‑hundreds of millions under today's rates). The adviser stressed the analysis is scenario‑based and assumes conservative revenue and expenditure growth, a debt‑service coverage cushion, and existing COP obligations. - Interest‑rate sensitivity: Small changes in long‑term market rates materially change borrowing capacity; a 50‑basis‑point increase reduced the adviser’s illustrative capacity substantially in the model. - Rating and prudence considerations: The firm noted that large new borrowings can affect credit ratings; cities and counties typically weigh credit‑rating impacts, ongoing operating flexibility, and capital needs before deciding the size and structure of COP issues.
Property‑tax outlook and state law impact
County staff and the assessor presented the preliminary 2025 certified values (for collection in 2026) and explained how state legislation will alter assessed‑value math in later years. The 2025 preliminary certification showed an increase in county taxable value compared with 2024. Staff reported a projected increase in 2026 property‑tax revenues of about $21.4 million compared with the current year, but also warned that a rise in abatement claims and the new state law will complicate multi‑year receipts.
House Bill 24B1001: staff summarized the recently enacted legislative change to assessment rules (commonly referred to in staff materials as HB 24B1001). The bill changes assessment‑rate calculations for various property classes in future years. Staff showed that the commercial assessment rate is scheduled to decrease over the next two years and that those changes, combined with the law’s residential adjustments, can produce a sizable reduction in taxable value in 2027 even after a 2026 uptick.
What the board asked: commissioners asked staff to treat the 2026 increase conservatively and to avoid locking recurring operating increases that could become unaffordable in 2027 when assessed values and revenue bases may decline under the new state calculation. Staff said they will smooth revenue assumptions across 2026–27 and present multiple scenarios in the draft budget.
