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Council approves refinancing to fund regional recycling facility; completion expected August 2026
Summary
Council authorized a $13 million certificate of participation to refinance short-term notes and support the MRF at 32 Road. Staff said the facility will not generate revenue until August 2026, so the issuance includes capitalized interest to cover early costs.
The City Council approved an ordinance Oct. 15 authorizing refinancing of a short-term special revenue note to finance the city’s regional materials recovery facility (MRF) at 32 Road.
CFO Jay Valentine described the financing as a certificate of participation (COP) secured by the building and equipment rather than general-fund revenues. He said the issuance will include capitalized interest because the facility will not begin producing revenue until August 2026. "The facility is not gonna open and start generating cash and revenues until August 2026," Valentine said.
The ordinance covers a financing package of approximately $13 million par value (with premium) to refinance earlier short-term borrowing for land, building acquisition and equipment. Valentine said $2 million of the issue is callable to match grant receipts scheduled for 2027 from Colorado Circular Communities, enabling flexibility when those funds are received.
Council asked about lifespan and long-term capital needs; staff said the renovated building is expected to be a 30-plus-year asset and equipment is collateralized for approximately 20 years, with routine maintenance and future capital needs anticipated.
Council voted 6–0 to adopt ordinance No. 52-82 authorizing the refinancing; staff plans to proceed with rating and pricing steps and a Dec. 3 closing.
