Fort Morgan advances aquatic-facility financing plan on first reading
The proposed plan calls for $25 million in net proceeds and estimated annual payments of about $2.03 million over 20 years; a second reading is scheduled for Oct. 20.
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Fort Morgan City Council unanimously approved on first reading Oct. 6 an ordinance for proposed certificates of participation to help pay for the city’s aquatic facility. A second reading is scheduled for Oct. 20, the council’s meeting record shows.
The financing presentation outlined a plan for $25 million in net proceeds. Andrew Mouth, an underwriter with Piper Sandler, estimated a 20-year term ending in 2046, an interest rate of about 5.09% and level annual payments of roughly $2.03 million. If the certificates are not refinanced, estimated payments over the term would total about $40.567 million. The final interest rate will be set when the certificates are priced, so the figures are estimates, not locked terms.
Mouth said revenue from a 1% sales-tax increase approved in the November election is planned to cover both repayment and the facility’s operations and maintenance. He also said the project would need cash beyond the $25 million in net proceeds. The presentation did not specify how much additional cash would be needed or its source.
The proposed certificates of participation, a form of lease financing, would include a 10-year call provision that could allow the city to refinance or restructure if market conditions are favorable. The financing team’s proposed schedule calls for a credit-rating discussion Oct. 21, pricing around Nov. 10 and closing Nov. 19. Those dates remain part of the preliminary plan.