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Aurora prices $26.6M in COPs for animal shelter; strong demand trims interest to 4.77%
Summary
City staff reported the pricing of 2025 Certificates of Participation for part of the animal shelter financing; Moody's affirmed the city's AAA issuer rating, the new COPs received an AA2 rating for appropriation risk, and strong market demand reduced the total interest cost to 4.77%, saving about $246,000 versus initial pricing assumptions.
A city finance staff member reported to the Finance Committee that the City of Aurora priced $26.6 million of 2025 Certificates of Participation (COPs) to help finance the city’s new animal shelter. The sale was underwritten by Stifel and priced after receiving strong investor demand.
Staff said Moody’s affirmed the city’s issuer rating at AAA and assigned the new series an AA2 rating, citing greater appropriation risk for the animal shelter portion compared with other city facilities. The offering was oversubscribed; staff cited roughly 100 orders totaling over $114 million for the $26.6 million offering. Initial pricing targeted a total interest cost of 4.815%, and because of strong demand the final total interest cost was 4.77%, a reduction that staff said equated to approximate savings of $246,000 over the life of the issue. The financing is scheduled to close on Thursday, Sept. 11.
The presenter reminded the committee the animal shelter financing represented only part of the facility’s funding; other sources include general government capital impact fees, American Rescue Plan Act (ARPA) funds, and estate gifts. Stifel was credited for strong execution of the sale.
Committee members congratulated staff on favorable pricing and noted the city’s financial management contributed to market reception; no formal council action was recorded in the committee minutes on the financing presentation.
