Huerfano County approves lease-purchase financing for park repairs after public questions about asset-management funding

Huerfano County commissioners on April 22 approved Resolution 25-23 authorizing lease-purchase financing through the County Asset Management Corporation to fund certain improvements to a county park.

The resolution, approved by recorded yea votes during the meeting, authorizes a lease-purchase financing arrangement between the county and its Asset Management Corporation to cover the county's share of a project paired with a Colorado Department of Local Affairs (DOLA) grant. The item prompted extended public questions about why the county is using its asset-management arm as lender, and why the project budget increased from figures discussed at earlier meetings.

The issue mattered to residents because public comment indicated an earlier estimate for roof repairs of about $40,000 had risen to roughly $119,000, and speakers sought clarity about who ultimately carries the financial obligation and whether the county's park property would be encumbered.

During public comment, Annalee Hickey asked the board why the $40,000 initially discussed for a roof repair "was coming from the asset management corporation" rather than the county general fund and asked for clarification on the larger $119,000 figure that appeared in the resolution packet. Hickey said she "never felt real clear on understanding of why it was coming from the asset management corporation to the county." She also asked whether the larger figure included a lift that she understood would be grant-funded.

Kim Trujillo, who identified herself as the county finance officer, said the change in the dollar amount reflected that the expected matching funds from the local partner (referred to in the meeting as the park partner's contribution) were not available. Trujillo said this shortfall is why the county sought the additional money via the asset-management financing mechanism. She summarized the county's solution: because the match was not available, the county would use the asset management corporation to provide the loan portion the grant did not cover.

County staff and commissioners explained the mechanics as follows: the Huerfano County Asset Management Corporation holds funds from prior projects, fees and transactions; it can originate or provide financing for county projects so that grant funds and local loans are combined to pay project costs. According to staff responses during the meeting, the DOLA grant covers 50% of the total project cost and the asset-management financing will cover the other 50%. Staff described the lease-purchase arrangement used here as an unsecured internal financing mechanism rather than a mortgage placed against the park's deed.

A resident asked directly whether the arrangement would create "any sort of a lien." The county's response during the Q&A was that the financing would not create a deed-of-trust mortgage on the park parcel: "No. It doesn't." Meeting remarks further stated that the arrangement functions as an internal obligation between the county and its asset-management corporation rather than a conventional external mortgage on the property.

During the discussion the meeting record also notes that the county expects to repay the asset-management corporation from county revenues over time and that the county budget includes the payback; board members and staff referenced a multi-year repayment schedule in the discussion. The resolution was moved and seconded and the board voted in favor.

The board approved Resolution 25-23 during the meeting. The packet and staff comments flagged the project as paired with a DOLA grant and identified the asset-management corporation as the financing vehicle the county will use to cover its local share.

The board approved other items at the same meeting, including permits, appointments and equipment purchases; those votes are summarized separately in a "Votes at a glance" roundup.

Looking ahead, the packet and staff comments indicate the county will proceed with the park improvements using the combination of DOLA grant funds and asset-management financing; the county did not record a property-level mortgage on the park parcel during the vote.