PUEBLO—On Dec. 15, 2023, the City of Pueblo priced and sold certificates of participation in a competitive sale. Nine bids were received, with the winning bid coming from BNYMellon Capitals Markets with a true interest rate (TIC) of 3.656%. This funding allows the City of Pueblo to move forward with plans to build three new fire stations.
“The receipt of these funds is the culmination of years of planning and hard work by the City of Pueblo,” said Mayor of Pueblo Nick Gradisar. “These state-of-the-art fire stations will be energy efficient and will increase the effectiveness of our Fire Department and will provide a safe environment for our firefighters.”
Securing this lower-than-expected interest rate brought the annual lease payments for the certificates of participation lower than budgeted amounts. For comparison, the current bank prime loan interest rate is 8.5% (https://www.federalreserve.gov/releases/h15/). Lease payments for the Series 2023 Certificates of Participation are scheduled through 2043.
Closing and delivery of proceeds from this transaction occurred December 21, 2023. At which time, the City received $34,450,000 to construct, improve, and equip three new fire stations in Pueblo. The City of Pueblo is expected to finalize design plans for the new fire stations in the first quarter of 2024.
The first fire station to begin construction will be Station 6, located on Pueblo’s east side. Station 8, which is also the City of Pueblo Fire Administration Building, is anticipated to be updated with a new build on the northside of the city closer to the University Park area. The third fire station to be built, Station 11 will be located on the west side.
The new stations provide healthier living conditions, updated equipment, improved safety for the firefighters and added training facilities. The addition of Station 11 will expand the City of Pueblo Fire Department’s reach and improve call times with new growth and housing development on the west side of town.