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Greeley authorizes $50M water bonds and $50M sewer bonds to fund infrastructure projects
Summary
The council authorized two enterprise bond issuances—$50 million for water improvements and $50 million for sewer improvements—with staff citing project lists, a 20-year amortization and repayment from utility rates; both ordinances passed 6–0.
On April 21 the Greeley City Council adopted ordinances authorizing up to $50 million in Water Revenue Bonds and up to $50 million in Sewer Improvement Revenue Bonds.
Water staff said bond proceeds will fund purchases of water rights, transmission and distribution upgrades, storage rehabilitation and infrastructure to access the Cherry Ranch Aquifer. Robert Miller said the water issuance would mature in 20 years with average annual payments of roughly $4.1 million; total repayment for the water issuance was estimated at about $74 million to be repaid from water rates and fees. Hilltop Securities representative Jason Simmons said market interest at the time of the meeting was just over 4% and the ordinance language allows up to about 5% (with some extra room written into the ordinance to address market volatility).
For sewer, staff said proceeds will support rehabilitation of the wastewater treatment and reclamation facility (phase 2 of a two-phase rehab), generator replacement and trunk sewer capacity projects. Sean Chambers, director of water and sewer, explained that the current rehabilitation work addresses regulatory requirements and prevents a much larger capital expense projected for future regulatory tightening.
Public commenters asked about rate impacts and why the bonds are necessary; staff responded that the issuances are consistent with the adopted capital improvement plans and will be repaid from enterprise rate revenue. Both bond ordinances were adopted by a 6–0 roll-call vote. The city intends to seek ratings in May and complete competitive sales and closings in May–June.
