Greeley board backs $50 million water and $50 million sewer bond proposals, recommending council approval

The Greeley Water and Sewer Board on April 15 voted unanimously to recommend that City Council approve two revenue bond resolutions: a $50 million water bond and a separate $50 million sewer bond.

Finance staff summarized the water bond as 20-year debt callable after 10 years, with current pricing roughly 4.6 percent and estimated annual debt payments of about $4.1 million. The water package includes $13 million for water acquisitions, $8 million for distribution pipeline replacements, $6 million for Milton Seaman outlet works, master planning, security upgrades and various treatment-plant and reservoir rehabilitations. “These will be a 20 year debt, callable in 10 years,” Virgil said in the presentation while outlining project lists and financing assumptions.

On the sewer side, staff described a similarly structured 20-year issuance expected to carry an interest rate near 4.7 percent and debt payments comparable to the water issue. The sewer bond would fund a major primary-treatment Phase 2 project at the wastewater treatment plant (approximately $44 million) and a generator replacement (about $6 million), among other items. Staff noted existing bond and loan covenants will be met and that issuance costs are expected to be in the $0.5–1.0 million range.

Board members asked about past issuances, the amount budgeted for water acquisition and a recent negative outlook referenced by rating agencies. Staff said the negative rating outlook for sewer was primarily tied to outstanding litigation with Windsor and that a ratings call was scheduled that could update the rating.

The board moved, seconded and voted to approve resolutions authorizing issuance of water and sewer revenue bonds and to recommend them to City Council for further action.

The board’s recommendation moves each resolution to City Council for ordinance action and final authorization.