Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Stormwater Funding topic
No spam. Unsubscribe anytime.
Lyons trustees direct staff to plan for $3.8M stormwater loan while pursuing federal grants
Summary
After a workshop presentation of BRIC, DOLA and state-loan options, Lyons trustees gave staff direction to assume the full $3.8 million leveraged loan scenario for 2nd and 3rd Avenue stormwater work while continuing to pursue grant matches; the board also approved a budget amendment and added a wildfire-mitigation set-aside to be finalized later.
Trustees in Lyons spent the bulk of a July workshop on how to pay for a large stormwater reconstruction of 2nd and 3rd Avenues, and they gave staff a planning direction: prepare the 2027 budget assuming a leveraged loan for the full $3.8 million project while staff continues to pursue BRIC and other grant matches.
Staff said the preferred, best-case scenario is an award of a BRIC grant for just over $4 million that includes a grant-administration line (5% allowance often used to fund grant management). "We applied for a BRIC grant for just over $4,000,000," Tracy, the town's grant staffer, said, "which includes $190,000 for grant administration." That award would require a sizable match (staff used $949,000 in modeling) or alternative match sources such as DOLA local-match assistance or a natural-disaster mitigation enterprise grant (maximum $900,000). Tracy said BRIC decisions are likely by January 2027 and state loan decisions follow similar timelines.
If no grants materialize, staff explained, the town can apply to the state revolving loan fund as either a direct loan (for projects up to $3,000,000) or a leveraged loan (projects above $3,000,000 that are pooled with other borrowers). Staff warned that a leveraged loan will likely require a dual pledge of revenue (capital sales tax plus stormwater user fees) and bond counsel to confirm compliance with TABOR and enterprise-status rules.
Trustees debated trade-offs. Several members favored pursuing the smaller direct loan plus an $800,000 local backfill to preserve fund balance; others argued borrowing the full amount now preserves flexibility and the value of capital today. Staff's rough repayment estimate for a $3.8 million loan at mid-range interest rates was an annual payment near $268,000, and staff noted small shortfalls could be managed with stormwater fees or a dual pledge.
After discussing scope, contingency and the town's other capital needs (including a wastewater-treatment project and planned sheriff budget increases), the board reached consensus to plan for the leveraged $3.8 million scenario while continuing grant applications and allowing scope adjustments after 60% design if costs demand it. Mayor (the chair) and trustees agreed staff should bring refined cost estimates and proposed financing language back during budget development.
Separately, trustees approved Resolution 2026-44, a first 2026 budget amendment that updates beginning fund balances with audited numbers, adds grant rollovers and appropriations and — after debate and an amendment on the floor — included a line item for wildfire-mitigation measures. Trustees discussed a $50,000 proposal during debate, but the final amendment language and amount set aside were adjusted during amendment discussion and are recorded in the minutes; staff said the value and the exact implementation will be finalized in subsequent meetings.
Action items from the workshop directed staff to continue pursuing BRIC and DOLA matches, to prepare 60% design cost estimates, and to build the 2027 budget assuming the $3.8 million leveraged loan as a conservative planning case.
