On Tuesday, Dec. 3, the Pagosa Springs Town Council, acting as the Pagosa Springs Sanitation General Improvement District (PSSGID) board, approved the second reading of Ordinance 20, allowing the issuance of tax-exempt revenue bonds in an amount not to exceed $4.8 million.
The second reading was passed unanimously.
The PSSGID previously hired a financial advisor, Joey McLinely with McLinely and Company, a division of SAMCO Capital Markets Inc.
During the Dec. 3 meeting, McLinely indicated he was pleased to report that conversations with rating agencies went well, and praised Town of Pagosa Springs staff for the work they’ve put in.
“The call could not have gone better,” McLinely said, explaining that he has these conversations with rating agencies regularly and that they are typically not so pleasant.
He explained it was a “delightful phone call,” as he was able to supply the agency with everything it asked for.
McLinely noted the next step is to wait to receive the rating, which should come in approximately two weeks.
McLinely also spoke about how the town is discussing a policy of not financing anything for longer than 75 percent of its usable life, which he praised by saying, “Nobody of a community this size or 10 times this size even addresses that. You guys addressed it in that policy.”
According to agenda documentation, the bonds will go toward funding repairs to the town’s sewer collection system, with an agenda document stating, “It’s anticipated that these funds will go to address the more critical sections of the collection system, which have commonly been referred to as category 4s and 5s.”
clayton@pagosasun.com
