Agenda Date: 05/05/2026
Subject:
Title
Ordinance 13-2026: An ordinance on first reading authorizing the issuance of Certificates of Participation (COPs) to finance the construction of certain public improvements of the city
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Laurie Matta, Finance Director |
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Presentations: |
N/A |
PURPOSE:
Council consideration of an ordinance approving issuance of Certificates of Participation (COPs) to fund the Main Street Improvement Projects component of Project Downtown.
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
This ordinance provides authorization for the City to move forward with the process to issue COPs, in an amount not-to-exceed $32,000,000 to provide funding for our Main Street Improvement project. While this amount is greater than the $27,500,000 originally envisioned for COPs funding this project, authorizing a higher amount will provide maximum flexibility for the City Council to accommodate its ultimately desired design for the project and construction market inflation that has occurred since the concept planning phase of the project.
COPs are a financial obligation backed by the City’s facility assets, commonly used by municipalities to finance capital improvements. Staff plans to use US Bank as its Trustee; the terms of the COPs are in draft form in the Authorizing Ordinance pending finalization upon completion of the underwriters’ work over te next two weeks. Terms will be refined as necessary for the second reading of this ordinance. Since this is the first time the City has gone to market for financing in 20 years, recommend using the negotiated sale approach to selling the COPs. Based on the typical process required to prepare for sales of the COPs and the design process for the project, staff anticipates the sale to take place this summer.
BACKGROUND:
Littleton faces a substantial backlog of capital needs that must be addressed to maintain high service standards for our residents. Maintaining the quality of life our citizens expect requires a renewed commitment to our city's infrastructure.
For 20 years, the city has not issued debt for infrastructure and facility upgrades. The cost of delaying facility upkeep continues to rise. Over the past year, the Council has held discussions regarding near-term projects and potential long-term financing solutions.
Prior Actions or Discussions
In September council was supportive of issuing COPs for our main street, service center and town hall projects. In March council was supportive of moving forward with issuing COPs supported by the debt plan presented on April 28.
FISCAL IMPACTS:
Authorization of this ordinance allows the City to formally begin the process to issue COPs. Once issued the financial impact is a 20-year commitment to repay this financial obligation.
STAFF RECOMMENDATION:
Approval of the ordinance authorizing issuance of Certificates of Participation in order to provide funding for the Main Street Capital Improvement Project.
ALTERNATIVES:
Don’t approve issuance of the COPs and the City will not be able to fund the Main Street Project.
PROPOSED MOTION:
Proposed Motion
I move to approve Ordinance 13-2026 authorizing the issuance of Certificates of Participation (COPs) to finance the acquisition and construction of certain public improvements of the city on first reading and to set the second reading and public hearing for May 19, 2026.