Grand County authorizes $25 million financing plan for new EMS Station No. 1

Grand County commissioners on Feb. 11 authorized a lease-purchase financing package to fund construction of a new EMS Station No. 1, approving Resolution 2025-2-4 that delegates final pricing authority to county executives.

Maddy Povanovic of Hilltop Securities, the county’s municipal adviser, told the board the structure will use a site-lease/leaseback model with proceeds held by a trustee and a targeted project fund of $25,000,000. Povanovic said the financing team is targeting a pricing date of March 11 and a closing date of March 25; she summarized estimated repayment figures and said the county expects a Standard & Poor’s rating in the “double-A” category. “Sitting here today, we are looking at a total payment of about $37,700,000, a net interest cost of a little over 4.25 percent and an annual payment of about $1,850,000,” Povanovic said.

The resolution sets a 20-year lease term through Dec. 31, 2045, contains parameters (a maximum effective interest rate of 5 percent and a maximum total repayment of $42 million) and delegates final approval of pricing and execution to the board chair, county manager and finance director. Bond counsel explained that the lease form is structured so annual payments are subject to appropriation and therefore not classified as TABOR debt.

Commissioners asked about investor appetite, whether the financing would be tax-exempt if federal rules change, and how the county would sign closing documents. The county’s underwriter said market volatility has recently stabilized and that the team will report rating results to the board; bond counsel said signatures for closing documents are expected at a March 18 meeting or through a coordinated signing event. The resolution passed by voice vote with commissioners approving the chair to sign all documents.