Commissioners favor financing to preserve reserves for $300 million-plus project
By North Forty News Staff | NorthFortyNews.com
WELD COUNTY, Colo. — Weld County commissioners have selected a financing path for the county’s largest capital project, choosing a combination of cash and Certificates of Participation, or COPs, to pay for the planned Justice Center.
Four commissioners supported the approach, while Commissioner Jason Maxey favored paying entirely with cash. Current project estimates range from approximately $300 million to nearly $370 million.
Under the plan, county cash will pay for the parking garage, while approximately $249 million in COPs is anticipated for the Justice Center. Annual lease payments are estimated at no more than $20 million, less than 3% of the county’s $703 million budget.
County officials said preserving reserves was a major factor in the decision. Weld County currently has approximately $971 million across its fund balances, including about $611 million in unrestricted funds.
Paying approximately $368.5 million in cash could reduce reserves from roughly 17 months of operating expenses to seven months. The selected financing approach is projected to preserve about 14 months of operating expenses.
Financing carries additional costs. County analysis estimates the COP approach could add a net $20 million to $35 million over 20 years, depending on investment returns. Officials estimate spending the reserves instead could sacrifice about $11 million annually in investment income at current rates.
Maxey opposed the financing approach, citing Weld County’s debt-free history and the cost of borrowing. Commissioners Kevin Ross, Perry Buck, Lynette Peppler and Scott James supported COPs after considering the county’s reserves and future capital needs.
Colorado law does not classify COPs as indebtedness because commissioners must appropriate the lease payments annually. Weld County previously used COPs to help construct the current jail, issuing certificates in 1997 and paying them off in 2007.
Staff will now seek underwriting proposals, complete the credit-rating process and bring a final authorizing resolution back to commissioners. The county expects to issue the certificates before the end of 2026 and says taxes will not be increased to fund the Justice Center.
More information is available through the Weld County Justice Center website.
Source: Weld County
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