Greeley advances $100 million water and sewer revenue bonds for treatment upgrades and acquisitions

Greeley advances $100 million water and sewer revenue bonds for treatment upgrades and acquisitionsThe Colorado municipality will issue $50 million in water bonds and $50 million in sewer bonds to finance regulatory-driven wastewater improvements, pipeline replacements, and strategic water rights purchases.

$44 million of the sewer bond is earmarked for Primary Treatment Phase II at the city's wastewater facility to meet future regulatory requirements for nitrogen and phosphorus removal.

The water bond includes $13 million for future water acquisitions, driven largely by a put-call agreement with Wingfoot Corporation for the Terry Ranch project.

Both 20-year bonds have estimated annual debt payments of $4.1 million each and are supported by recent rate increases.

The city's sewer enterprise recently received a negative outlook from S&P, which staff attributed to pending litigation with the neighboring Town of Windsor.

The Greeley Water and Sewer Board in Colorado unanimously approved resolutions on April 15, 2026, authorizing the issuance of $50 million in water revenue bonds and $50 million in sewer revenue bonds. The combined $100 million debt package will finance a suite of near-term capital projects, regulatory compliance upgrades, and strategic water acquisitions. The largest single expenditure is a $44 million allocation from the sewer bond for the Primary Treatment Phase II project at the city's Wastewater Treatment and Reclamation Facility. A staff member noted that the comprehensive plant update is heavily driven by the need to meet future state regulatory requirements for nitrogen and phosphorus removal, alongside replacing obsolete equipment. The sewer bond also includes $6 million for generator replacement at the facility. Despite maintaining an AA+ rating, the sewer enterprise recently received a negative outlook from S&P. Staff attributed this to market caution surrounding Greeley's ongoing litigation with the neighboring Town of Windsor over regional sanitary sewer service capacity. On the drinking water side, the $50 million water bond will fund $13 million in future water acquisitions. According to the utility's finance staff, approximately $12 million of this allocation is tied to a contractual put-call agreement with Wingfoot Corporation regarding the Terry Ranch groundwater project. The city had hoped private-sector credit sales for industrial development would outpace the need for the city to directly buy the credits, but slower-than-expected regional growth triggered the contractual obligation to have the funds on hand. Other major projects funded by the water bond include $8 million for distribution pipeline replacements and $6 million for outlet works at the Milton Seaman Reservoir. Both bond issuances are structured as 20-year debt, callable in 10 years, with maximum interest rates capped at 5.25%. Current estimates place the water bond interest at 4.6% and the sewer bond at 4.7%. Each bond will require approximately $4.1 million in annual debt service payments, which have already been factored into recent rate and fee increases. The bond ordinances will now advance to the Greeley City Council for final adoption on April 21, ahead of a planned competitive sale in late May.