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Council approves $20M in voter-authorized transportation bonds; staff outlines project schedule
Summary
City Council gave final approval to a general-fund revenue bond issuance that will generate roughly $20 million for voter-authorized transportation projects, with pricing expected in November and closing in December. Staff emphasized cost escalation and a multi-year construction schedule.
The Grand Junction City Council voted Oct. 15 to adopt an ordinance authorizing a new series of general-fund revenue bonds intended to finance transportation projects included in a voter-authorized package.
Chief Financial Officer Jay Valentine told council staff expects to sell bonds with a par value of $19,125,000 to generate approximately $20,000,000 in project funds after market premium, and estimated an interest-rate environment near 4.58 percent for the series. "We're gonna have sell a par value of 19,125,000 to generate project funds of 20,000,000," Valentine explained at the presentation.
Staff outlined a timeline that includes a credit-rating call with Standard & Poor's on Oct. 28, pricing Nov. 20 and a closing on Dec. 3. Several projects funded by earlier voter authorization (2019) are already under construction; others are proceeding through design or were pushed later in the 10-year plan as a result of rising land and construction costs.
Council members asked whether issuance was mandatory under the voter authorization; the city attorney/staff answered the vote authorizes issuance but does not mandate immediate sale. Council also discussed prioritization and the risk of escalating construction costs; staff said grants and transportation impact fees will cover some project portions and that the 3/4-cent sales tax backs the debt service on this tranche.
Council member Van Dyke moved adoption of ordinance No. 5,281 authorizing the issuance; the motion passed on a 6–0 roll-call vote.
Next steps: staff will proceed with the rating call and set pricing in late November ahead of a December closing. Council members asked staff to continue public updates on project timing and budget assumptions.
