Municipal Building Authority authorized to issue up to $1.8M in lease revenue bonds for fire truck

The municipal building authority of Grand County on July 1 approved a parameters resolution authorizing issuance of up to $1.8 million in lease revenue bonds to finance a new county fire truck.

Background County staff and financial adviser Cruz and Associates explained the plan for short‑term public financing linked to a low‑interest Community Impact Board (CIB) loan. The CIB had authorized a 15‑year loan at 1% for $1,422,000 for the truck; the parameters resolution adopted by the municipal building authority sets broader issuance caps (up to $1,800,000 principal, up to 17 years, maximum interest rate 5% and a maximum discount) to give the authority flexibility when finalizing the sale and to accommodate minor cost changes without requiring another public proceedings cycle.

Why a lease revenue bond Cruz and Associates explained lease revenue bonds issued by the municipal building authority are an appropriate structure for this purpose; because the CIB will be the purchaser the authority will receive the CIB’s subsidized rate and the county avoids higher market rates. The structure also preserves options for the county to repay by FAA reimbursements expected to come later.

Commission action The parameters resolution was approved by the municipal building authority and later by the county commission (in the county’s role) with formal language setting the maximum principal, term and interest and authorizing the authority’s officers to finalize the bond documents.

Next steps Staff will finalize documents, run the required 30‑day public notice and public hearing process, and, assuming no challenge, close the bond sale and draw CIB proceeds to purchase the fire truck. County counsel and the financial adviser will complete the closing documents and coordinate the eventual reimbursement flow from FAA funds referenced by staff.