Castle Rock approves option to issue up to $66 million in water bonds
The authorization’s ceiling is reduced by the amount of any state water loan the town receives, and it does not require a bond sale.
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Castle Rock Town Council voted 7-0 on Oct. 6 to authorize up to $66 million in water and sewer revenue bonds, preserving a borrowing option for water-system improvements without requiring the town to issue bonds. The council approved the ordinance on second and final reading after approving it on first reading Sept. 15; the Water Commission had recommended it 4-0 on Sept. 23, according to the meeting records.
Potential projects include the Plum Creek-to-Rueter-Hess Reservoir pipeline and pump stations, Box Elder and Lost Creek improvements, added water-treatment capacity, and other pipeline and reservoir work. The adopted ordinance sets a $66 million principal ceiling, reduced by the amount of any Colorado Water Conservation Board loan the town receives. If the town receives the proposed $30 million loan, the ceiling would be $36 million; without a loan, it would remain up to $66 million.
The proposed loan is separate from the bond authorization and would help fund the $48.4 million Plum Creek-to-Rueter-Hess pipeline project. At its September meeting, the Water Commission tabled consideration of the loan pending more information, and its minutes said a loan decision was expected Nov. 18. The ordinance preserves the town’s option to sell bonds later within the authorization’s limits; it does not itself authorize a specific bond sale.