MONUMENT • The Monument Board of Trustees has authorized a major move to fund water improvement projects over the next three years.
At the board’s Sept. 21 meeting, they heard recommendations from town staff and special legal counsel regarding the potential for using the sale of revenue bonds to fund major improvements to its water system over the coming years.
However, instead of revenue bonds, it was recommended Monument create an ordinance to enter a site lease agreement and lease purchase agreement to market Certificates of Participation (COPs) — an alternate form of financing.
Town attorney Andrew Richey presented the finer details of the agreement, with bond counsel provided by Nate Eckloff of Piper Sandler and Kimberly Crawford of Butler Snow Law Firm. Both counsels recommended the certificates to help maximize the town’s budgetary flexibility in financing the water projects.
Presently, the town has a 2A water fund and an enterprise water fund for its improvements. Formal revenue bonds would have the town fund improvements from just one fund, Richey said. Using Certificates of Participation is a way many municipalities, counties and school districts fund projects without having to raise taxes and is a financial structure approved by the Colorado Supreme Court, Richey said. The collateral for the agreement would be town-owned property, infrastructure and improvements.
With the agreement, Monument would lease its collateral property to BOK Financial in Denver, which would act as the financial trustee in exchange for an anticipated $22 million. BOK Financial then leases back the property to the town, and Monument pays “base rents” to pay off the $22 million over time, Richey said.
Richey said Certificates of Participation also carry added protection for the town since they involve leases over a particular term and not transfer of title. Monument would not lose title to